Which part of the commercial package policy provides liability and physical damage coverage for a business's autos?

The commercial auto coverage part is specifically designed to provide both liability and physical damage coverage for vehicles used in the course of a business. This means it covers damages resulting from accidents involving business-owned vehicles, as well as damage to those vehicles from non-collision events such as theft, vandalism, or severe weather.

Additionally, this part of the policy addresses the unique needs of companies that rely on transportation for their operations, ensuring that all necessary coverages align with business uses rather than personal ones. This includes not only vehicles owned by the business but also hired or non-owned vehicles used for business purposes.

In contrast, the commercial general liability part mainly focuses on general liability claims and does not cater to auto-related incidents. A business owners policy (BOP) is designed for small to medium-sized businesses and may include limited coverage for vehicles but not the comprehensive protection provided by the commercial auto coverage part. Garage-keepers insurance, while relevant in instances of liability associated with vehicle storage, specifically covers liability for vehicles in the care of the insured and does not cover vehicles owned by the business itself. Thus, the commercial auto coverage part is clearly the right choice for providing comprehensive auto-related coverage for a business.