For an auto acquired during the policy period, what condition must be met for coverage under the BAP?

For an auto acquired during the policy period to qualify for coverage under the Business Auto Policy (BAP), it is essential that it replaces a covered auto or that all vehicles are insured with the same insurance company. This requirement ensures that the insurer maintains a consistent risk evaluation across all vehicles under the policy. When a vehicle replacing a covered auto is added, it typically inherits the same coverage without requiring additional steps, which simplifies the process for policyholders who often need to add or replace vehicles during their policy term.

The aim of this condition is to prevent coverage gaps when a vehicle is added or replaced. By requiring that the new purchase either be part of a larger insured group with the company or replace an existing covered auto, the insurer can better manage its risk and maintain clarity in the coverage provided.