Georgia Adjuster Practice Test

Which Business Automobile policy symbol permits the insured to purchase coverage for both liability and physical damage?

1. Symbol 1

2. Symbol 2

3. Symbol 3

4. Symbol 4

The correct answer is: Symbol 3

The correct choice signifies Symbol 3, which is specified in the Business Automobile Policy (BAP) as covering "owned private passenger autos." This symbol allows the insured to purchase not only liability coverage but also physical damage coverage for vehicles that the insured owns and is used for business purposes. Symbol 3 includes coverage for risks involving physical damage and liability for each owned vehicle, making it versatile for businesses that utilize cars or light trucks. Businesses typically require comprehensive and collision coverage for their owned vehicles to protect against a range of potential risks like accidents, theft, and vandalism, ensuring complete protection. In contrast, other symbols do not provide the same level of comprehensive coverage. For instance, Symbol 1 covers all owned vehicles but does not specifically denote the type of vehicles essential for defining liability and physical damage options as in the case with Symbol 3. Understanding these distinctions is crucial for making informed decisions about insurance coverage for business operations involving vehicles.