12.1 Business Auto Coverage Form and Covered Auto Symbols
Key Takeaways
- The Business Auto Coverage Form CA 00 01 (current edition 11 20) is the primary commercial auto form and can be monoline or part of a CPP.
- Covered-auto symbols 1-9 and 19 in Section I determine which autos each coverage applies to.
- Symbol 1 (Any Auto) is the broadest but is available for liability only, never physical damage.
- Symbol 7 covers only specifically described (scheduled) autos; newly acquired autos need the all-owned-plus-30-day condition.
- Hired (8) and non-owned (9) autos carry no physical damage unless specifically endorsed.
The Business Auto Coverage Form (BACF)
Most commercial vehicle exposures are written on the ISO Business Auto Coverage Form (CA 00 01), the workhorse of commercial auto. It can stand alone as a monoline policy or, far more commonly, attach to a Commercial Package Policy (CPP) alongside Commercial Property and CGL. The current edition is CA 00 01 11 20 (November 2020). On the exam, recognize that the BACF replaced the older Business Auto Policy (BAP) terminology, though many test questions still say "BAP."
The form is built from three pieces that travel together:
- The Declarations — names insured, premium, limits, and the covered-auto symbols.
- The Business Auto Coverage Form — the insuring agreements, conditions, and definitions.
- Any endorsements that add, broaden, or restrict coverage.
Structure of the Coverage Form
The BACF is organized into five sections that you should memorize in order, because exam stems reference them:
| Section | Title | What it does |
|---|---|---|
| I | Covered Autos | Assigns symbols 1–9, 19 |
| II | Covered Autos Liability | BI/PD liability, defense, supplementary payments |
| III | Physical Damage Coverage | Comprehensive, Specified Causes of Loss, Collision |
| IV | Business Auto Conditions | Loss conditions and general conditions |
| V | Definitions | Defines "auto," "insured," "loss," etc. |
Covered Auto Designation Symbols
The heart of Section I is the numbered symbol system. Each coverage on the Declarations (Liability, Comprehensive, Collision, Medical Payments, UM) is activated by entering a symbol number next to it. The symbol — not a vehicle schedule alone — determines which autos that coverage applies to.
- Symbol 1 — Any Auto. Broadest. Used for liability. Covers owned, hired, non-owned, and autos acquired after the policy starts. Only available for liability, never physical damage.
- Symbol 2 — Owned Autos Only. All autos the insured owns, including those acquired during the term.
- Symbol 3 — Owned Private Passenger Autos Only.
- Symbol 4 — Owned Autos Other Than Private Passenger (trucks, vans).
- Symbol 5 — Owned Autos Subject to No-Fault.
- Symbol 6 — Owned Autos Subject to Compulsory UM Law.
- Symbol 7 — Specifically Described Autos. Only the autos listed by VIN on the Declarations; newly acquired autos are NOT automatically covered unless the auto-acquired condition is met.
- Symbol 8 — Hired Autos Only (leased, rented, borrowed — but not from employees).
- Symbol 9 — Non-owned Autos Only (employees' and partners' autos used in the business).
- Symbol 19 — Mobile Equipment Subject to Compulsory/Financial Responsibility Law.
Exam Traps
Symbol 1 is broadest but is liability-only — a candidate who writes Symbol 1 for Collision creates a coverage error. To insure newly acquired autos automatically, the insured needs Symbol 2 or 7 with the right newly-acquired language; Symbol 7 alone gives 30-day automatic coverage only if the insured already insures all owned autos under 7 and notifies the insurer within 30 days. Hired (8) and non-owned (9) symbols give no physical damage on those autos unless specifically requested, and even then physical damage on hired autos is usually added by endorsement (CA 99 54 / Hired Auto Physical Damage).
An insured wants the broadest liability protection on the Business Auto Coverage Form, covering owned, hired, and non-owned autos automatically. Which covered-auto symbol should appear next to Liability on the Declarations?
A risk is written with Symbol 7 for both Liability and Collision. The insured buys a new delivery truck mid-term and wrecks it before notifying the insurer. Coverage for the truck most likely:
The Business Auto Coverage Form Structure
The Business Auto Coverage Form (CA 00 01) is organized into five sections: Section I Covered Autos (defining which autos are covered through numbered symbols), Section II Covered Autos Liability Coverage, Section III Physical Damage Coverage, Section IV Business Auto Conditions, and Section V Definitions. Coverage is built by entering numbered symbols next to each coverage on the declarations, so the same form can insure a single delivery van or a large fleet simply by changing the symbols. Mastering the symbol system is the gateway to every commercial auto question.
The Covered Auto Symbols
The principal symbols are: 1 (any auto, the broadest, used for liability), 2 (owned autos only), 3 (owned private passenger autos only), 4 (owned autos other than private passenger), 5 (owned autos required to carry no-fault), 6 (owned autos required to carry uninsured motorists), 7 (specifically described autos, the narrowest), 8 (hired autos only), and 9 (non-owned autos only, such as employees' cars used on business). Symbol 1 cannot be used for physical damage because you cannot insure damage to an auto you do not own; physical damage uses symbols 2, 3, 4, 7, 8, or 19.
Why Symbol Selection Drives Coverage
The symbol entered next to a coverage determines exactly which autos that coverage protects. A business that enters symbol 1 for liability has automatic liability coverage on any auto it operates, including newly acquired and borrowed vehicles, while symbol 7 covers only the vehicles listed, requiring the insured to report new acquisitions. Combining symbol 1 for liability with symbols 8 and 9 picks up hired and non-owned exposure for liability. The exam constantly tests whether a given vehicle (a newly bought truck, a rented car, an employee's personal auto) is covered under the symbols selected.
Hired and Non-Owned Exposures
Symbol 8 (hired autos) covers liability arising from autos the insured leases, hires, rents, or borrows, excluding those borrowed from employees or partners; symbol 9 (non-owned autos) covers autos owned by others, including employees, used in the insured's business, protecting the business when an employee runs a company errand in a personal car.
Because most businesses have some hired and non-owned exposure even if they own no vehicles, the exam often presents a service firm with no owned autos and asks how its delivery-driver liability is covered; the answer is hired and non-owned auto coverage via symbols 8 and 9, frequently endorsed onto a BOP or CGL.