12.1 Business Auto Coverage Form and Covered Auto Symbols
Key Takeaways
- The Business Auto Coverage Form is ISO CA 00 01; it has five sections (Covered Autos, Liability, Physical Damage, Conditions, Definitions).
- Covered auto symbols 1–9 are the coverage trigger; symbol 1 (Any auto) is broadest but available only for liability, never physical damage.
- Symbol 7 covers only scheduled autos; newly acquired autos must be reported within 30 days under symbol 7.
- Symbols 8 (hired) and 9 (nonowned) are often added to round out owned-auto coverage.
- Temporary substitute autos and small trailers (2,000 lbs or less) are automatically covered for liability.
The Business Auto Coverage Form (BAP)
The Business Auto Coverage Form (ISO form CA 00 01) is the cornerstone commercial auto policy. Combined with the Common Policy Declarations, the Business Auto Declarations (CA DS 03), and the Common Policy Conditions (IL 00 17), it builds a complete monoline auto policy or one part of a commercial package policy (CPP). The current edition most schools test is CA 00 01 11 20, though older 10 13 editions still appear on exams.
The BAP is a self-contained, open-perils-style liability and named-perils physical-damage contract. It has five sections you must memorize in order: Section I – Covered Autos (the symbols), Section II – Covered Autos Liability Coverage, Section III – Physical Damage Coverage, Section IV – Business Auto Conditions, and Section V – Definitions.
Covered Auto Symbols 1–9
The single most-tested BAP concept is the covered auto symbol entered next to each coverage in the declarations. A symbol describes which autos are insured for that coverage; the same policy can use different symbols for liability versus physical damage. Symbols are NOT optional descriptors—they are the coverage trigger.
| Symbol | Description | Exam trap |
|---|---|---|
| 1 | Any auto | Broadest; only used for liability, never physical damage |
| 2 | Owned autos only | All autos you own |
| 3 | Owned private passenger autos only | PPTs only |
| 4 | Owned autos other than PPT | Trucks, trailers |
| 5 | Owned autos subject to no-fault | Provides required PIP |
| 6 | Owned autos subject to compulsory UM | Triggers UM |
| 7 | Specifically described autos | Only autos listed in the schedule |
| 8 | Hired autos only | Leased, rented, hired—not owned, not borrowed |
| 9 | Nonowned autos only | Employees' autos used in business |
How symbols combine
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Symbol 1 (Any auto) is the broadest liability symbol—owned, hired, and nonowned autos, plus newly acquired autos automatically with no reporting requirement.
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Symbol 7 (specifically described) is the narrowest: a newly acquired auto is covered only if reported within 30 days and is of a type already insured, unless broadened acquisition language is shown.
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Symbols 8 and 9 are commonly paired (8 + 9) to round out a policy that already uses 2 or 7 for owned units—covering hired and nonowned exposure cheaply.
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Physical damage can use symbols 2, 3, 4, 7, 8, or 19 (mobile equipment), but never symbol 1, because you cannot insure physical damage on autos you neither own nor control.
A business wants the broadest possible liability protection, including automatic coverage for autos acquired during the policy period. Which covered auto symbol should appear next to Liability in the declarations?
Newly acquired, temporary substitute, and trailers
Under the BAP, the definition of "covered auto" expands automatically in three situations regardless of symbol (subject to the symbol allowing owned autos):
- Newly acquired autos – covered if the symbol is broad (1, 2, 3, 4); if symbol 7 is used, you must report within 30 days.
- Temporary substitute autos – a borrowed auto used because a covered owned auto is out of service for breakdown, repair, servicing, loss, or destruction is automatically covered for liability.
- Trailers – trailers with a load capacity of 2,000 lbs or less designed for use with a private passenger auto are treated as covered autos for liability without being scheduled.
Watch the trap: a mobile equipment item (forklift, bulldozer) is generally NOT a covered auto under the BAP—it belongs under the CGL—unless it is subject to compulsory/financial-responsibility law while on public roads, in which case the BAP responds.
Choosing the Right Symbol Set in Practice
Underwriters rarely use a single symbol. The exam expects you to pair an exposure with a typical symbol combination:
| Insured profile | Common symbol set | Why |
|---|---|---|
| Established firm wanting maximum liability | 1 for liability; 2 for physical damage | Symbol 1 cannot be used for physical damage |
| Small firm, few scheduled vehicles | 7 liability + 7 physical damage + 8/9 | Schedule owned units, add hired/nonowned cheaply |
| Firm with no owned autos | 8 + 9 | Covers hired and employee (nonowned) use only |
| Firm in a no-fault/compulsory-UM state | add 5 and/or 6 | Triggers statutory PIP and UM on owned autos |
Quick Answer: Liability is usually written with symbol 1 (any auto) or symbol 7 (scheduled) plus 8 and 9; physical damage is written with 2, 7, or 8 — never symbol 1.
Why the Distinction Matters
The symbol drives whether a newly acquired auto is covered automatically. A growing contractor who buys a fifth truck mid-term is protected instantly under symbol 1, 2, 3, or 4, but under symbol 7 that new truck is uninsured unless reported within 30 days (or a broadened-coverage acquisition clause is shown). Examiners build scenarios around a business that acquires a vehicle and then suffers a loss before reporting it — the correct answer turns entirely on which symbol appears on the declarations. Always read the declarations symbol first, then decide coverage; the symbol, not the vehicle list, is the true trigger.
An insured's scheduled (symbol 7) delivery van is in the shop for transmission repair, so the owner borrows a neighbor's van to make deliveries. Under the BAP, is the borrowed van covered for liability?