BAP vs PAP
Do you need a Business Auto Policy (BAP) or is your Personal Auto Policy (PAP) adequate? Although every contractor asks this question, this will unfortunately be one of the vaguest answers you will find on our site – because it depends.
Every carrier can have their own guidelines and to complicate things even more, many Personal Auto Policies can be endorsed to expand coverage to the business. Many contractors fail to mention the business use of their personal vehicle for fear “it will cost more”. Therefore, unless you specifically ask for this endorsement, you most likely do not have it. The first concern you need to be worried about is if your PAP excludes business use of your vehicle, which means you would be driving without insurance no matter how much in premium you are paying!