Property & Casualty Insurance Exam (National Portion)Types of PoliciesMedium
A small construction company owns several vehicles, including dump trucks, excavators, and supervisor's sedans. They need to ensure comprehensive coverage for physical damage and liability for all these vehicles. Which commercial auto coverage form would be most appropriate?
- AMotor Carrier Coverage Form
- BTruckers Coverage Form
- CBusiness Auto Coverage Form (BACF)
- DGarage Coverage Form
Show answer & explanationAnswer & explanation
Correct answer: C. Business Auto Coverage Form (BACF)
The Business Auto Coverage Form (BACF) is designed for organizations that own, lease, or operate commercial vehicles, covering a wide range of vehicle types including private passenger autos, trucks, trailers, and specialized equipment like dump trucks and excavators, making it suitable for a construction company.
Why the other options are wrong
- A. The Motor Carrier Coverage Form is used for businesses that transport property or passengers for hire, which does not describe a construction company's primary operations.
- B. The Truckers Coverage Form is designed for businesses that transport goods for others, typically over long distances, which is not the core function of a construction company.
- D. The Garage Coverage Form is specifically designed for auto dealers, repair shops, service stations, and parking garages, not general construction companies.
Business Auto Coverage Form (BACF)
The standard commercial auto coverage form used by businesses to insure vehicles they own, lease, hire, or borrow, including private passenger autos, trucks, and other commercial vehicles.
- Provides liability and physical damage coverage.
- Applicable to a wide array of businesses, not just those in transportation.
- Can be tailored with various endorsements to meet specific needs.
Memory trick: Business is general, Garage is specific, Motor Carrier hauls, Truckers drive far.