Georgia Adjuster Practice Test

An insured has BAP physical damage coverage but which peril is NOT covered?

1. Falling objects

2. Fire

3. Theft

4. Vandalism

The correct answer is: Falling objects

In a Business Auto Policy (BAP), physical damage coverage typically includes several perils, but falling objects are generally not included among theseCovered perils in most standard policies typically encompass fire, theft, and vandalism. Falling objects, however, relate more to property coverage and are often excluded under vehicle physical damage coverage because they do not pertain directly to the risks associated with operating an automobile. For instance, if a heavy object were to fall on a vehicle while it was parked, the damage would usually not be addressed by the physical damage coverage of a BAP, as such occurrences are typically associated more closely with stationary property risks rather than vehicle operation or use. Therefore, understanding the scope and limitations of coverage is crucial for policyholders to ensure they are adequately protected against the specific risks associated with their vehicles.