Does BAP cover property damage to auto rented or leased by name insured or one of its employees?

Does BAP cover property damage to auto rented or leased by name insured or one of its employees?

• A. Yes
• B. No
• C. Only if endorsed to cover such damage
• D. Only if the vehicle is a non-owned auto

Answer: (B)

In a Business Auto Policy, the physical damage coverage that protects the insured’s own autos does not automatically extend to a vehicle you lease or rent. A rented or leased auto is owned by someone else, so PD to that vehicle isn’t covered under the standard PD/Collision provisions for your described autos. To insure damage to a hired vehicle, you’d need a specific endorsement such as Hired Auto Physical Damage (and related Non-owned Auto PD if applicable). Without that endorsement, property damage to a rented or leased auto isn’t covered. That’s why the correct answer is No.

In a Business Auto Policy, the physical damage coverage that protects the insured’s own autos does not automatically extend to a vehicle you lease or rent. A rented or leased auto is owned by someone else, so PD to that vehicle isn’t covered under the standard PD/Collision provisions for your described autos. To insure damage to a hired vehicle, you’d need a specific endorsement such as Hired Auto Physical Damage (and related Non-owned Auto PD if applicable). Without that endorsement, property damage to a rented or leased auto isn’t covered. That’s why the correct answer is No.