Final answer:
Physical damage to mobile equipment cannot be covered under a commercial auto policy. Commercial auto policies cover vehicles used for business, like cars and trucks, but not heavy-duty machinery which requires different insurance.Option 3 is the correct answer.
Step-by-step explanation:
The item that cannot be covered under a commercial auto policy is physical damage to mobile equipment. Typically, commercial auto policies are designed to cover vehicles such as cars, trucks, and other automobiles used for business purposes. However, 'mobile equipment' usually refers to items such as bulldozers, forklifts, or other heavy-duty machinery that are not considered 'autos' for insurance purposes. Therefore, these types of equipment often require a different kind of insurance policy.
Situations that can be covered under a commercial auto policy typically include businesses that use vehicles to transport goods or people, provide services, or perform business operations, like the owner of a parking lot, a garage that repairs trucks, or the owner of a trucking fleet. Insurance policies vary, and the specific types of coverage will depend on the insurer and the policy selected.
Physical damage to mobile equipment cannot be covered under a commercial auto policy. Commercial auto policies typically cover liability and physical damage to vehicles used for business purposes, but they do not cover physical damage to other types of equipment, such as mobile equipment. Examples of mobile equipment include cranes, forklifts, bulldozers, and other types of specialized machinery used in various industries.