12.1 Business Auto Coverage Form and Covered Auto Symbols
Key Takeaways
- The Business Auto Coverage Form (ISO CA 00 01) is the standard policy for cars, trucks, and vans used in business; coverage attaches only when a symbol and a limit appear on the declarations.
- Covered-auto symbols 1-9 describe categories of autos rather than listing each vehicle; Symbol 1 (Any Auto) is broadest and reaches owned, hired, and non-owned autos at once.
- Symbol 8 covers hired autos and Symbol 9 covers non-owned (employee-owned) autos; an owned-only symbol leaves both gaps open.
- Newly acquired autos are covered automatically for 30 days when the insured carries the matching owned symbol, but the insured must report them to keep coverage.
- Who Is An Insured is broad: the named insured for any covered auto, permissive users, and anyone vicariously liable for an insured's conduct.
What the Business Auto Coverage Form Is
The Business Auto Coverage Form (BACF) — current Insurance Services Office (ISO) edition CA 00 01 — insures cars, trucks, vans, and trailers a business owns, hires, or uses. It is the commercial counterpart to the Personal Auto Policy (PAP), but it must adapt to a risk that may own no vehicles, fifty vehicles, or constantly rent and borrow others.
Instead of scheduling each car, the BACF uses covered-auto designation symbols that describe categories of autos. A symbol and a limit must both appear on the declarations for a coverage to apply.
Modular Structure
The form is built in numbered sections so coverages can be switched on independently.
| Section | Function |
|---|---|
| Declarations | Named insured, limits, and the symbols selected |
| Section I – Covered Autos | Defines the nine symbols and newly-acquired rules |
| Section II – Covered Autos Liability | Third-party bodily injury and property damage |
| Section III – Physical Damage | Comprehensive, collision, specified causes of loss |
| Section IV – Conditions | Duties after loss, two-or-more forms, subrogation |
| Section V – Definitions | 'Accident,' 'auto,' 'loss,' 'mobile equipment' |
The Nine Covered-Auto Symbols
Each coverage line on the declarations carries its own symbol, so liability can be written far broader than physical damage on the same policy.
| Symbol | Category | Plain Meaning |
|---|---|---|
| 1 | Any Auto | Owned, hired, AND non-owned (broadest) |
| 2 | Owned Autos Only | Every auto the insured owns, any type |
| 3 | Owned Private Passenger Only | Owned cars/SUVs, not trucks |
| 4 | Owned, Other Than Private Passenger | Owned trucks, vans, specialty rigs |
| 5 | Owned Subject to No-Fault | Owned autos in PIP/no-fault states |
| 6 | Owned Subject to Compulsory UM | Owned autos where UM is mandatory |
| 7 | Specifically Described Autos | ONLY scheduled vehicles |
| 8 | Hired Autos Only | Rented, leased, or borrowed (not owned) |
| 9 | Non-Owned Autos Only | Employee/partner cars used for business |
Exam trap: Only Symbol 1 automatically pulls in both hired and non-owned exposure. A risk written Symbol 2 has a gap for rentals (needs 8) and for employee cars (needs 9). Physical damage is usually written with the narrower owned or scheduled symbols (2, 3, 4, or 7) because you cannot insure damage to autos you do not own.
Newly Acquired and Temporary Substitute Autos
A newly acquired auto is covered automatically for 30 days if the insured already carries the matching owned symbol (2, 3, or 4). If only Symbol 7 (specifically described) is carried, a new auto is covered only if the insurer is notified within 30 days. A temporary substitute auto — one used while a covered auto is out of service — picks up the covered auto's coverage.
Who Is An Insured
The insured definition has three tiers:
- The named insured — for ANY covered auto.
- Permissive users — anyone using an owned, hired, or borrowed covered auto with permission.
- Anyone vicariously liable for the conduct of an insured, to the extent of that liability (for example, an employer liable for an employee's covered driving).
Key carve-out: the owner of a hired or borrowed auto is not an insured (a rental company is not insured under your form), and an employee is not an insured while driving the employee's own auto. The employer relies on Symbol 9 for its own vicarious liability; the employee's personal policy is primary.
Mobile Equipment vs. Auto
The form distinguishes an auto (a land motor vehicle designed for use on public roads) from mobile equipment (bulldozers, forklifts, cranes). Mobile equipment is generally insured under a Commercial General Liability (CGL) policy, not the auto form. Exam trap: a self-propelled vehicle that maintains permanently attached equipment (a cherry picker on a truck chassis) can blur the line; when it is licensed for road use and carries people or cargo, it is an auto.
Worked Example: Symbol Selection
A contractor owns 6 trucks, occasionally rents a box truck, and sends employees on errands in personal cars. To close every liability gap the agent should write liability with Symbol 1 (Any Auto), and physical damage with Symbol 4 (owned other than private passenger) plus Symbol 8 for hired physical damage on the rented box truck. Symbol 1 on liability alone covers the owned trucks, the rental, and the employee cars in one stroke.
Rating and Audit
Commercial auto is fleet-rated or schedule-rated depending on the number of power units. A fleet is generally five or more self-propelled vehicles under one ownership, eligible for blended fleet rating. The premium at inception is a deposit premium; because vehicles are added and deleted mid-term, the policy is auditable, with the final premium trued up at expiration based on actual exposure. Primary rating factors include vehicle type, gross vehicle weight (GVW), radius of operation (local, intermediate, long-haul), use class (service, retail, commercial), and the operator's loss history.
A business owns trucks and also has employees who run errands in their own personal cars. The owner wants the broadest single liability symbol that covers owned, hired, and employee autos at once. Which symbol applies?
An insured carries Symbol 3 (owned private passenger) for physical damage and buys an additional company car mid-term. How long is the new car covered automatically?