Which of the following is a type of BAC Form Physical Damage Coverage offered?

• A. Specified cause of loss
• B. Liability
• C. Medical payments
• D. Personal umbrella liability

Answer: (A)

When you’re looking at Physical Damage Coverage under the Business Auto Coverage Form, the policy protects the insured vehicle for damage from certain perils. One option that can be offered is a Specified Causes of Loss, which is a named-peril approach: only the perils listed in the policy are covered for damage to the covered auto. That makes this option a type of Physical Damage Coverage, because it directly relates to damage to the insured vehicle itself, rather than to people or other property.

The other choices describe coverages that are not about the vehicle’s own damage: liability covers injuries or property damage to others arising from a covered auto; medical payments covers medical expenses for occupants; and a personal umbrella liability provides excess liability protection.