In a BAP policy, the liability section provides protection from claims for which of the following?

• A. Bodily Injury and Property Damage for which insured is legally responsible.
• B. Medical payments for injuries to all parties.
• C. Property damage to the insured's own vehicle only.
• D. Uninsured/Underinsured motorist losses.

Answer: (A)

In a Business Auto Policy, the liability portion handles claims brought by others for injuries or property damage caused by the insured’s use of a covered auto, where the insured is legally at fault. This is the core idea behind liability coverage: it protects the insured against third-party claims for bodily injury and property damage, up to the policy limits, and includes defense costs.

That’s why the option describing bodily injury and property damage for which the insured is legally responsible is the best choice. Medical payments are a separate coverage that pays medical expenses regardless of fault, not a liability claim against others. Property damage to the insured’s own vehicle is typically handled by collision or other coverages, not liability. Uninsured/underinsured motorist losses are dealt with under UM/UIM coverage, not the liability section.