West Virginia Property and Casualty Licensing Practice Exam

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What does a commercial auto policy provide coverage for?

Personal vehicle accidents only
General liability for businesses
Financial protection for a business's vehicle and its drivers
Homeowners insurance

The correct answer is: Financial protection for a business's vehicle and its drivers

A commercial auto policy is specifically designed to provide financial protection for vehicles owned or used by a business. This type of insurance covers a variety of vehicles, such as trucks, vans, and cars, that are utilized for business purposes. The policy typically includes protections against damages to the vehicle itself, liability for injuries or damages caused by the vehicle while being used for business, and also covers drivers who operate the vehicle in the scope of their business activities. By focusing on the business's vehicles and their operators, the commercial auto policy addresses the unique risks associated with using vehicles in a commercial context, which is not the case in options that pertain to personal vehicles, general liability issues unrelated specifically to vehicles, or homeowners insurance. Therefore, a commercial auto policy is essential for any business that uses vehicles to minimize financial liabilities stemming from accidents or damages.