What must be added by endorsement in addition to the BAP coverage?

The correct choice is the need to add physical damage coverage not specified in the Business Auto Policy (BAP) by endorsement. The BAP provides liability coverage for bodily injury and property damage arising from the use of covered autos, but it does not inherently include physical damage coverage for the insured vehicles unless explicitly added. This physical damage coverage encompasses protection against losses or damages to the vehicles themselves, such as collision and comprehensive damage, which is not automatically included under the standard BAP.

While homeowners insurance typically covers personal property and not business vehicles, and workers' compensation insurance addresses employee injuries rather than vehicle damage, it is essential to note that the BAP is specifically tailored to commercial vehicles. Liability coverage, while a critical component of the BAP, does not correspond to the request for additional physical damage coverage. Therefore, the endorsement for physical damage coverage is necessary to ensure full protection of commercial vehicles beyond the standard liability provided by the BAP.