Which loss would be covered under a business auto policy for a highway contractor?

In a business auto policy, coverage typically extends to auto-related liability exposures that a business might face while using their vehicles for business purposes. In the case of a highway contractor, the policy would protect against liabilities that arise from the operations of their vehicles in connection with their business activities.

When an employee causes damage to a subcontractor's equipment while operating a vehicle for business purposes, this falls under the definition of liability arising from the use of an auto in a business context. This type of loss would generally be covered under a business auto policy. The coverage applies to bodily injury and property damage resulting from an accident involving a covered vehicle, which includes incidents that occur while the vehicle is being used for business operations.

In contrast, the other options involve scenarios that are not typically covered by a business auto policy. For instance, liability for a defective product relates to product liability—not automobile liability. Injury to an employee during work would generally fall under workers' compensation insurance, rather than a business auto policy. Lastly, damage to the contractor’s own vehicle is not covered under a business auto policy since these policies generally provide liability coverage to third parties rather than physical damage coverage for the insured's own vehicle, unless it includes comprehensive or collision coverage.