12.1 Business Auto Coverage Form and Covered Auto Symbols
Key Takeaways
- The Business Auto Coverage Form (CA 00 01 11 20) has five sections: Covered Autos, Liability, Physical Damage, Conditions, and Definitions.
- Memorize the nine covered-auto symbols; Symbol 1 (Any Auto) is the broadest and is liability-only.
- Only Symbols 1-6 automatically cover newly acquired autos; Symbol 7 requires reporting within 30 days unless all owned autos are already covered.
- Physical damage cannot use Symbol 1 because you cannot insure the value of autos you do not own.
- Symbol 8 = hired/rented autos; Symbol 9 = non-owned autos (employee-owned used in business).
The Business Auto Coverage Form
Commercial auto exposures for most non-fleet, non-trucking businesses are written on the ISO Business Auto Coverage Form (CA 00 01), the heart of the Business Auto Policy (BAP). The current widely tested edition is CA 00 01 11 20 (November 2020). A complete BAP consists of the Business Auto Coverage Form plus a Business Auto Declarations, Common Policy Conditions (IL 00 17), the Common Declarations, and any endorsements.
The coverage form is organized into five sections you must memorize for the exam:
The Five Sections of CA 00 01
| Section | Title | What it does |
|---|---|---|
| I | Covered Autos | Assigns numeric symbols defining which autos are covered |
| II | Covered Autos Liability | BI/PD liability, covered pollution, supplementary payments |
| III | Physical Damage | Comprehensive, specified causes of loss, collision, towing |
| IV | Business Auto Conditions | Loss conditions + general conditions |
| V | Definitions | Defines "auto," "insured," "mobile equipment," etc. |
A key definition trap: "mobile equipment" (bulldozers, forklifts, road graders) is generally NOT an "auto" and is covered under general liability, not the BAP. However, self-propelled equipment with permanently mounted equipment that is subject to compulsory or financial-responsibility law IS treated as an auto.
Covered Auto Designation Symbols
The single most heavily tested commercial-auto concept is the covered auto symbol system. A symbol number is entered next to each coverage in the Declarations to define which autos that coverage applies to. The nine symbols:
- Symbol 1 — Any Auto: Broadest. Used only for liability. Covers owned, hired, non-owned, and autos acquired later.
- Symbol 2 — Owned Autos Only: All autos the insured owns (and acquires during the term).
- Symbol 3 — Owned Private Passenger Autos Only.
- Symbol 4 — Owned Autos Other Than Private Passenger.
- Symbol 5 — Owned Autos Subject to No-Fault.
- Symbol 6 — Owned Autos Subject to Compulsory Uninsured Motorists Law.
- Symbol 7 — Specifically Described Autos: Only autos listed in the Declarations (with premium shown).
- Symbol 8 — Hired Autos Only: Autos leased, hired, rented, or borrowed (not from employees).
- Symbol 9 — Non-Owned Autos Only: Autos owned by employees/others used in the business.
Symbol Logic and Newly Acquired Autos
The critical rule: only Symbols 1, 2, 3, 4, 5, and 6 automatically cover newly acquired autos. Symbols 7, 8, and 9 do NOT.
If the insured uses Symbol 7 (Specifically Described Autos) for physical damage, a newly purchased vehicle is covered only if (a) the insured already covers all owned autos, or (b) the insured notifies the insurer within 30 days of acquisition. Many exam questions hinge on this 30-day Symbol-7 reporting window.
For liability, insurers favor Symbol 1 (Any Auto) because it sweeps in hired and non-owned exposure automatically. Physical damage CANNOT use Symbol 1 — you cannot insure the value of an auto you do not own, so physical damage uses Symbols 2, 3, 4, 7, or 8.
The Covered Auto Symbols 1-9
The Business Auto Coverage Form assigns numeric symbols that define which autos are covered for each coverage. Memorize the key ones: Symbol 1 = Any Auto (broadest, used for liability); 2 = Owned Autos Only; 7 = Specifically Described Autos (only those listed, used for physical damage); 8 = Hired Autos Only; 9 = Non-owned Autos Only (employees' cars used for business). Symbols 3, 4, 5, 6 narrow owned autos by type (private passenger, not-private-passenger, subject to no-fault, subject to compulsory UM).
Reading the Symbol on the Dec Page
The exam shows a declarations grid and asks what is covered. If Liability shows Symbol 1, any auto — owned, hired, or non-owned — triggers liability coverage. If Physical Damage shows Symbol 7, only the specifically scheduled vehicles get collision/comprehensive. The classic answer: to cover hired and non-owned liability you need symbols 8 and 9 (or Symbol 1). Choosing the wrong symbol leaves an uninsured gap, which is exactly the scenario tested for commercial-auto producers.
Symbol 19 and Auto Definitions
Newer editions add Symbol 19 — Mobile Equipment Subject to Compulsory or Financial Responsibility Laws, capturing equipment that becomes "auto" only because the law treats it so. The exam also tests the line between auto and mobile equipment: bulldozers, forklifts, and cranes not designed for road use are mobile equipment covered under the CGL, while road-licensed vehicles are autos covered under the business auto form. Misclassifying the unit puts the claim under the wrong policy.
A contractor lists Symbol 7 (Specifically Described Autos) for collision coverage and does not otherwise cover all owned autos. The contractor buys a new pickup and reports it on day 40. A collision occurs on day 35, before reporting. Is the new pickup covered for collision?
Hired vs. Non-Owned
Distinguish carefully: Symbol 8 (Hired) = autos the business leases, rents, or borrows. Symbol 9 (Non-Owned) = autos owned by employees or others used in business (e.g., a salesperson driving a personal car on company errands). A common combination on a small-business BAP is Liability: 1; Physical Damage: 7; plus 8 and 9 for hired/non-owned liability — though Symbol 1 already includes hired and non-owned, so 8 and 9 are only added when a narrower liability symbol (like 7) is chosen.
Remember: Symbol 1 is the ONLY symbol that includes autos in ALL three ownership categories (owned, hired, non-owned) plus future acquisitions.
Which covered-auto symbol provides the broadest liability coverage, automatically including owned, hired, non-owned, and newly acquired autos?