12.1 Business Auto Coverage Form and Covered Auto Symbols
Key Takeaways
- The Business Auto Coverage Form (CA 00 01) has five sections: Covered Autos, Liability, Physical Damage, Conditions, and Definitions.
- Covered auto symbols (1-9, plus 19) entered in the Declarations define which autos are covered for each specific coverage.
- Symbol 1 (any auto) is the broadest liability option and provides automatic coverage for newly acquired autos; it is not available for physical damage.
- Under Symbol 7, newly acquired autos must be reported within 30 days.
- Trailers of 2,000 pounds capacity or less designed for private passenger autos are automatically covered.
The Business Auto Coverage Form (BAP)
Commercial auto exposures are insured under ISO's Business Auto Coverage Form (CA 00 01), the cornerstone of the commercial auto line. Combined with the Commercial Auto Declarations (CA DS 03) and the Common Policy Conditions (IL 00 17), the BAP forms a complete monoline commercial auto policy.
The BAP can also be attached to a Commercial Package Policy (CPP) as the auto line. It is organized into five numbered sections: Section I Covered Autos, Section II Covered Autos Liability Coverage, Section III Physical Damage Coverage, Section IV Business Auto Conditions, and Section V Definitions. Exam questions frequently test which section governs a given dispute, so memorize this order.
Covered Auto Symbols
The BAP never simply says "all your vehicles are covered." Instead, the insured selects numerical symbols (1 through 9, plus 19) entered next to each coverage in the Declarations. A symbol defines which autos are covered for that specific coverage. The same auto can carry different symbols for liability versus physical damage, which is a common exam wrinkle.
The most heavily tested symbols appear below. Read each one as a defined set of autos that attaches to whichever coverage line it sits next to in the Declarations.
| Symbol | Description | Common Use |
|---|---|---|
| 1 | Any auto | Broadest; full liability protection |
| 2 | Owned autos only | All autos the insured owns |
| 3 | Owned private passenger autos only | Cars only |
| 4 | Owned autos other than private passenger | Trucks/trailers |
| 5 | Owned autos subject to no-fault | No-fault states |
| 6 | Owned autos subject to compulsory UM | UM coverage |
| 7 | Specifically described autos | Only scheduled autos |
| 8 | Hired autos only | Leased, rented, borrowed |
| 9 | Nonowned autos only | Employees' personal autos |
Choosing the Right Symbol Mix
Symbol 1 (Any Auto) is the broadest and is available only for liability. Because it includes autos the insured does not yet own, it provides automatic coverage for newly acquired autos with no reporting requirement. Physical damage cannot use Symbol 1.
A practical rule for the exam: a contractor wanting maximum liability protection plus physical damage on its trucks would use Symbol 1 for liability and Symbol 7 or 8 for physical damage. Symbol 7 (specifically described autos) is the narrowest owned-auto option and triggers strict reporting of newly acquired autos. Symbol 9 (nonowned) plus Symbol 8 (hired) is the classic "hired and nonowned" liability combination for a business with no owned autos.
Newly Acquired and Trailer Provisions
When liability is written on Symbol 1 or 2, newly acquired autos are automatically covered. If liability is written on Symbol 7, a newly acquired auto is covered only if (a) the insurer already covers all owned autos or the new auto replaces a described auto, and (b) the insured notifies the insurer within 30 days of acquisition.
Trailers with a load capacity of 2,000 pounds or less designed for use with a private passenger auto are automatically covered as owned autos. Mobile equipment carried on or towed by a covered auto follows the auto's coverage. A frequent trap: an auto held for sale by an auto dealer is excluded from the BAP and instead belongs under garage/auto-dealer coverage, covered later in this unit.
Reading the Symbols on the Declarations
The covered-auto symbols are entered next to each coverage on the Business Auto declarations, and the exam expects you to translate a symbol into a covered-auto category. Symbol 1 (Any Auto) is the broadest and is available only for liability; it covers owned, hired, and non-owned autos and any auto the insured later acquires, which is why it is favored for liability on active businesses. Symbol 2 (Owned Autos Only) covers all autos the insured owns and automatically picks up newly acquired owned autos. Symbols 3 and 4 narrow ownership to owned private passenger autos or owned autos other than private passenger autos.
Symbol 7 (Specifically Described Autos) covers only autos listed on the declarations; a newly acquired auto is covered only if the insurer is notified within 30 days, which makes Symbol 7 risky for liability but common for physical damage where each scheduled auto carries its own ACV and deductible. Symbol 8 (Hired Autos) covers autos the insured leases, hires, rents, or borrows, but never autos owned by employees. Symbol 9 (Non-Owned Autos) covers autos used in the business that the insured does not own, hire, or borrow, including employees' personal autos used on company errands.
The pairing of symbols 8 and 9 is the standard way a business protects itself against vicarious liability when employees drive their own or rented cars on business, an exposure the BAP otherwise leaves open. Two other symbols, 19 for mobile equipment subject to compulsory or financial-responsibility law and the special garage symbols, appear in specialized forms.
Worked symbol scenario: a contractor wants the broadest liability and physical damage only on its three listed trucks. The agent enters Symbol 1 for liability (any auto), and Symbol 7 for comprehensive and collision (the three scheduled trucks). If an employee then rents a truck for a job, Symbol 1 liability responds, but physical damage to the rental would require adding Symbol 8 to the physical-damage line. Matching the right symbol to the right coverage line is the most common Business Auto exam task.
Key Takeaways
The Business Auto Coverage Form uses numbered symbols to define covered autos per coverage. Symbol 1 (any auto) is broadest and liability-only; Symbol 2 covers all owned autos; Symbol 7 covers only scheduled autos (common for physical damage); and Symbols 8 and 9 cover hired and non-owned autos to close the employee-driving gap. Reading which symbol sits beside which coverage line on the declarations is the core skill tested.
An insured wants the broadest possible liability protection, including automatic coverage for autos it does not yet own. Which covered auto symbol should be entered for liability in the Declarations?
A business writes liability on Symbol 7 and acquires a new delivery van. For the van to be covered, the insured must notify the insurer within how many days of acquisition?