In the scenario where hail damages several autos at a single location, how is the BAC deductible applied?

• A. It applies to each covered auto
• B. It applies to the location as a whole
• C. It is waived if multiple vehicles are damaged
• D. It applies only if total losses exceed deductible

Answer: (A)

The key idea is that a BAC deductible is applied per covered auto, even when several vehicles are damaged in the same hail event. In a business auto policy, each damaged auto is treated separately for the purpose of the physical damage deductible. So if multiple vehicles are hit, you subtract the deductible from each vehicle’s loss before the insurer payout, not just once for all vehicles at the location.

For example, if three autos each have $3,000 in damage and the BAC deductible is $500 per vehicle, the insurer would pay $2,500 for each auto, totaling $7,500. This per-vehicle treatment keeps the deductible tied to each insured vehicle’s loss rather than to the location or overall event.