What is 'business auto insurance' primarily designed for?

Business auto insurance is designed specifically to provide coverage for vehicles that are owned and used by a business. This type of insurance addresses the unique risks associated with commercial vehicles, such as delivery vans, trucks, and other vehicles utilized for business purposes. It covers various types of liabilities, including damage to other vehicles or property, as well as medical expenses for injuries sustained in an accident involving a business vehicle. Given that businesses often have different needs and higher exposure to risk than individual vehicle owners, this insurance is tailored to offer adequate protection for those vehicles involved in business operations.

The other choices do not correctly reflect the purpose of business auto insurance. Personal vehicle coverage pertains to individual usage and does not cater to commercial activities. A policy focused solely on liability coverage is too narrow a definition, as business auto insurance typically includes both liability and physical damage coverage. Lastly, insuring real estate properties falls outside the scope of business auto insurance, as it pertains to a completely different type of asset and coverage requirement.