Which covered auto designation symbol provides the BROADEST coverage under a Business Auto Policy?

Symbol 1 - Any Auto. Symbol 1 (Any Auto) provides the broadest coverage because it includes ALL autos—owned, hired, borrowed, and non-owned. This is commonly used for liability coverage to ensure the business is protected regardless of which vehicle is involved.

Under a BAP with Symbol 9 (Non-Owned Autos Only) for liability, which of the following would be covered?

An employee's personal car used for business errands. Symbol 9 covers non-owned autos, which are vehicles the named insured does not own but uses for business purposes—typically employees' personal vehicles used for business. Symbol 2 covers owned vehicles and Symbol 8 covers hired (rented) vehicles.

An employee uses their personal car to make a business delivery and causes an accident. Under the employer's BAP with Symbol 9, who is covered?

Only the employer. Under Symbol 9 for non-owned autos, the named insured (employer) is covered for liability arising from the use of non-owned autos in the business. However, employees are NOT covered for their own vehicles—their personal auto policy is primary for their own protection.

Key Takeaways

The Business Auto Policy (BAP) provides LIABILITY, PHYSICAL DAMAGE, and optional coverages for vehicles used in business—it's the commercial equivalent of the Personal Auto Policy.
The BAP uses COVERED AUTO DESIGNATION SYMBOLS (1-9) to specify which vehicles are covered for each coverage—this is unique to commercial auto.
WHO IS AN INSURED under the BAP includes the named insured, permissive users, and anyone liable for the named insured's conduct—broader than personal auto.
Commercial auto insurance accounts for approximately $45 BILLION in annual premiums in the U.S.
The average commercial auto liability claim exceeds $70,000, with severe trucking accidents regularly exceeding $1 MILLION.

Business Auto Policy Overview

What is the Business Auto Policy?

The Business Auto Policy (BAP) is ISO's standard form for insuring business-owned vehicles. It provides:

Liability coverage for bodily injury and property damage
Physical damage coverage (comprehensive and collision)
Medical payments
Uninsured/underinsured motorist coverage
Various optional coverages

BAP Policy Structure

Section	Content
Declarations	Named insured, covered autos, limits, symbols
Covered Autos	Designation symbols determining coverage
Liability Coverage	Third-party bodily injury and property damage
Physical Damage Coverage	Comprehensive, collision, specified causes
Business Auto Conditions	Policy conditions and duties
Definitions	Key terms defined

Covered Auto Designation Symbols

The BAP uses numbered symbols (1-9) to designate which autos are covered:

Symbol	Description	Meaning
1	Any Auto	ALL autos, including hired and non-owned
2	Owned Autos Only	Vehicles titled to named insured
3	Owned Private Passenger Autos Only	Owned cars (not trucks/vans)
4	Owned Autos Other Than Private Passenger	Trucks, vans, specialty vehicles
5	Owned Autos Subject to No-Fault	In no-fault states only
6	Owned Autos Subject to Compulsory UM	Where UM is required
7	Specifically Described Autos	Only vehicles listed in schedule
8	Hired Autos Only	Rented or borrowed vehicles
9	Non-Owned Autos Only	Employee-owned used for business

Common Symbol Combinations

Coverage	Common Symbols
Liability	Symbol 1 (Any Auto) most common
Physical Damage	Symbol 2 or 7 (Owned or Scheduled)
Hired Auto	Symbol 8
Non-Owned Auto	Symbol 9

Who Is an Insured?

For Owned Autos

Insured	Scope of Coverage
Named Insured	Any covered auto
Anyone using with permission	Named insured's covered auto
Anyone liable for insured's conduct	Supervisors, employers

For Hired Autos

Insured	Scope of Coverage
Named Insured	Hired autos
Anyone using with permission	If hired for named insured

For Non-Owned Autos

Insured	Scope of Coverage
Named Insured	Non-owned autos used for business
Partners/Members (if partnership)	In the business
Employees	NOT covered for their own autos

Key Point: Employees are NOT insureds for their own autos under the BAP—their personal auto policy is primary.

Liability Coverage

The BAP Liability Coverage insures against:

Bodily Injury to others
Property Damage to others' property

Coverage Trigger

Liability must arise from:

Ownership, maintenance, or use of a covered auto
Loading or unloading a covered auto

Supplementary Payments

Payment	Limit
Bail Bonds	Up to $2,000
Appeal Bonds	Unlimited
Interest on Judgments	Post-judgment interest
Defense Costs	In addition to limits
Loss of Earnings	Up to $250/day

Comparison: BAP vs. Personal Auto Policy

Feature	BAP	Personal Auto Policy
Covered Autos	Designated by symbols	Listed vehicles
Who Is Insured	Broader (permissive users)	Narrower
Commercial Use	Primary purpose	Excluded or limited
Loading/Unloading	Specifically covered	Generally covered
Physical Damage	Separate symbols	Same vehicle
Premium Basis	Fleet rating possible	Per vehicle

Property & Casualty Insurance

Introduction

Chapter 1: Insurance Fundamentals

Chapter 2: Property Insurance Concepts

Chapter 3: Dwelling Policies

Chapter 4: Homeowners Policies

Chapter 5: Personal Auto Policy

Chapter 6: Liability Insurance Concepts

Chapter 7: Commercial Property Insurance

Chapter 8: Commercial General Liability

Chapter 9: Commercial Auto Insurance

Chapter 10: Workers Compensation

Chapter 11: Other Commercial Lines

Chapter 12: Insurance Regulations and Ethics