Commercial Vehicle policy is used for which purpose?

• A. For private leisure vehicles
• B. Mainly used for business purposes such as transporting goods; not for passengers for hire
• C. For tractors
• D. For rental cars

Answer: (B)

Commercial vehicle coverage is meant for vehicles a business uses in its day-to-day operations, especially those that transport goods. It provides protection for the business’s on-road risks—like liability if a delivery vehicle causes damage or injuries, and coverage for the vehicle and its cargo—when the vehicle is used for business rather than for private, personal use. It’s not intended for private leisure driving, and it isn’t limited to a single vehicle type like tractors or to rental cars, which are typically covered by other specialized policies. So the purpose described—covering business-use vehicles such as those transporting goods and not for passengers-for-hire—best captures what a commercial vehicle policy is designed to insure.