13.1 Business Auto Coverage Form & Covered Auto Symbols
Key Takeaways
- The ISO Business Auto Coverage Form (CA 00 01) utilizes a standardized modular architecture comprising the Declarations Page, five operational sections (Covered Autos, Liability, Physical Damage, Conditions, Definitions), and attached endorsements.
- Numerical Covered Auto Designation Symbols (Symbols 1 through 9 and Symbol 19) customize coverage on the Declarations Page by specifying exactly which vehicle categories qualify for each coverage line.
- Symbol 1 ('Any Auto') provides the broadest liability protection—covering owned, hired, and non-owned vehicles—and is strictly restricted to Section II Liability Coverage.
- Symbol 7 ('Specifically Described Autos') restricts coverage exclusively to scheduled vehicles, granting automatic coverage for newly acquired autos only if the insurer already covers all owned autos or if the new vehicle replaces a scheduled auto and is reported within 30 days.
- Symbols 8, 9, and 19 extend coverage to distinct operational exposures: Symbol 8 covers hired/rented autos, Symbol 9 covers non-owned autos to protect employer vicarious liability when employees use personal cars, and Symbol 19 covers mobile equipment subject to motor vehicle financial responsibility laws.
13.1 Business Auto Coverage Form & Covered Auto Symbols
Commercial enterprises face severe financial exposures from the ownership, maintenance, operation, and entrustment of motor vehicles. Whether operating an extensive fleet of long-haul tractor-trailers, local delivery vans, corporate sedans, or requiring employees to drive their personal vehicles for business errands, commercial entities require specialized property and casualty protection.
The benchmark standard for commercial vehicle risks is the Business Auto Coverage Form (BACF - CA 00 01) developed by the Insurance Services Office (ISO). For North Carolina claims adjusters, mastering the modular structure of the BACF and the precise legal operation of Covered Auto Designation Symbols is critical to determining whether coverage attaches to a specific vehicle, driver, or loss.
1. Modular Structure of the Business Auto Coverage Form (CA 00 01)
The Business Auto Coverage Form is designed with a flexible modular structure. Rather than issuing separate policies for different vehicle classes, the BACF uses a standardized core contract accompanied by a customized Declarations Page where specific coverage lines are activated using numerical symbols.
┌─────────────────────────────────────────────────────────────────────────┐
│ ISO BUSINESS AUTO COVERAGE FORM (CA 00 01) STRUCTURE │
├─────────────────────────────────────────────────────────────────────────┤
│ BUSINESS AUTO DECLARATIONS: Schedule of Coverages, Covered Auto │
│ Symbols, Schedule of Covered Autos, Limits, Deductibles, Premiums │
├─────────────────────────────────────────────────────────────────────────┤
│ SECTION I │ COVERED AUTOS (Explains Covered Auto Designation Symbols)│
├──────────────┼──────────────────────────────────────────────────────────┤
│ SECTION II │ COVERED AUTOS LIABILITY COVERAGE │
│ │ (BI/PD Liability, Supplementary Payments, Out-of-State) │
├──────────────┼──────────────────────────────────────────────────────────┤
│ SECTION III │ PHYSICAL DAMAGE COVERAGE │
│ │ (Comprehensive, Specified Causes, Collision, Towing) │
├──────────────┼──────────────────────────────────────────────────────────┤
│ SECTION IV │ BUSINESS AUTO CONDITIONS │
│ │ (Loss Conditions, Primary/Excess Rules, Subrogation) │
├──────────────┼──────────────────────────────────────────────────────────┤
│ SECTION V │ DEFINITIONS (Legal meanings of Auto, Mobile Equipment, │
│ │ Bodily Injury, Property Damage, Insured, Accident) │
├─────────────────────────────────────────────────────────────────────────┤
│ COMMON POLICY CONDITIONS & ENDORSEMENTS (Drive Other Car, Audio, etc.) │
└─────────────────────────────────────────────────────────────────────────┘
Overview of Policy Sections
| Policy Section | Official Title | Primary Subject Matter & Operational Scope |
|---|---|---|
| Declarations Page | Policy Declarations | Itemizes named insured, policy period, covered auto symbols per coverage, schedule of owned vehicles (VIN, make, model), territory, limits of liability, physical damage deductibles, and premium breakdown. |
| Section I | Covered Autos | Establishes the 10 numerical covered auto symbols (1–9 and 19) and explains how newly acquired autos, temporary substitutes, and trailers are treated. |
| Section II | Covered Autos Liability | Provides third-party Bodily Injury (BI) and Property Damage (PD) liability protection resulting from covered auto accidents; includes defense costs outside policy limits and out-of-state coverage extensions. |
| Section III | Physical Damage | Provides first-party property coverage for physical loss or damage to covered autos under Comprehensive, Specified Causes of Loss, or Collision options. |
| Section IV | Business Auto Conditions | Details claims obligations, appraisal, subrogation, cancellation/non-renewal rules, and the fundamental Primary versus Excess insurance rules. |
| Section V | Definitions | Establishes explicit contractual definitions for vital terms including "Auto", "Mobile Equipment", "Bodily Injury", "Property Damage", "Pollutants", and "Suit". |
2. Complete Breakdown of Covered Auto Designation Symbols
Under the BACF, coverage is not applied uniformly to every vehicle. Instead, the policy uses Covered Auto Designation Symbols (Symbols 1 through 9 and Symbol 19) entered on the Declarations Page alongside each specific coverage part (Liability, Comprehensive, Collision, Uninsured Motorists). Adjusters must verify which symbol is entered next to each coverage line to determine whether a vehicle qualifies as a covered auto for that particular claim.
┌─────────────────────────────────────────────────────────────────────────┐
│ COVERED AUTO DESIGNATION SYMBOLS (1–9 & 19) │
├────────┬─────────────────────────┬──────────────────────────────────────┤
│ SYMBOL │ COVERED AUTO CATEGORY │ KEY OPERATIONAL RULES │
├────────┼─────────────────────────┼──────────────────────────────────────┤
│ 1 │ Any Auto │ Broadest liability scope; CANNOT be │
│ │ │ used for Physical Damage coverage. │
├────────┼─────────────────────────┼──────────────────────────────────────┤
│ 2 │ Owned Autos Only │ All autos owned by named insured; │
│ │ │ automatic newly acquired coverage. │
├────────┼─────────────────────────┼──────────────────────────────────────┤
│ 3 │ Owned Private Passenger │ Private passenger sedans, SUVs, and │
│ │ Autos Only │ station wagons owned by insured. │
├────────┼─────────────────────────┼──────────────────────────────────────┤
│ 4 │ Owned Autos Other Than │ Commercial trucks, vans, tractors, │
│ │ Private Passenger │ and heavy haulers owned by insured. │
├────────┼─────────────────────────┼──────────────────────────────────────┤
│ 5 │ Owned Autos Subject to │ Autos licensed or garaged in states │
│ │ No-Fault Laws │ with mandatory PIP / No-Fault laws. │
├────────┼─────────────────────────┼──────────────────────────────────────┤
│ 6 │ Compulsory Uninsured │ Autos garaged in states where UM/UIM │
│ │ Motorists (UM) Autos │ coverage cannot be rejected by law. │
├────────┼─────────────────────────┼──────────────────────────────────────┤
│ 7 │ Specifically Described │ Most restrictive owned auto symbol; │
│ │ Autos Only │ scheduled autos only (30-day rule). │
├────────┼─────────────────────────┼──────────────────────────────────────┤
│ 8 │ Hired Autos Only │ Leased, hired, rented, or borrowed; │
│ │ │ EXCLUDES employee-owned autos. │
├────────┼─────────────────────────┼──────────────────────────────────────┤
│ 9 │ Non-Owned Autos Only │ Employee vehicles used on business; │
│ │ │ protects employer's vicarious liability│
├────────┼─────────────────────────┼──────────────────────────────────────┤
│ 19 │ Mobile Equipment Under │ Mobile equipment subject to motor │
│ │ Motor Vehicle Laws │ vehicle financial responsibility. │
└────────┴─────────────────────────┴──────────────────────────────────────┘
Comprehensive Symbol Analysis
Symbol 1: Any Auto
Symbol 1 provides the absolute broadest scope of liability protection available. It covers any auto whatsoever—whether owned, hired, rented, leased, borrowed, or non-owned. Because an insurer cannot underwrite or calculate physical damage rates on unknown vehicles, Symbol 1 is strictly available for Section II Liability Coverage only.
Symbol 2: Owned Autos Only
Covers all autos owned by the named insured, including private passenger vehicles, commercial trucks, trailers, and any newly acquired owned autos. When Symbol 2 is selected for liability, it automatically includes trailers not owned by the insured while attached to owned power units.
Symbol 3: Owned Private Passenger Autos Only
Restricts coverage exclusively to private passenger motor vehicles (sedans, coupes, passenger SUVs, minivans) owned by the named insured. It excludes commercial box trucks, flatbeds, cargo vans, and heavy tractors, even if owned by the insured.
Symbol 4: Owned Autos Other Than Private Passenger
Covers all commercial motor vehicles owned by the named insured other than private passenger autos (e.g., dump trucks, utility bucket trucks, delivery box vans, semi-tractors). It provides coverage for owned trailers pulled by these commercial vehicles.
Symbol 5: Owned Autos Subject to No-Fault Laws
Applies to owned autos licensed or garaged in jurisdictions that have enacted compulsory Personal Injury Protection (PIP) or statutory No-Fault benefits. It ensures automatic statutory compliance when operating in no-fault states.
Symbol 6: Owned Autos Subject to Compulsory Uninsured Motorists Law
Applies to owned autos licensed or garaged in states whose statutory laws mandate compulsory Uninsured Motorists (UM) or Underinsured Motorists (UIM) coverage that cannot be legally rejected by the policyholder.
Symbol 7: Specifically Described Autos
Symbol 7 is the most restrictive owned auto symbol. It provides coverage only for those individual autos explicitly scheduled with their Vehicle Identification Numbers (VINs), makes, and models on the Declarations Page for which a specific premium charge is shown.
Symbol 8: Hired Autos Only
Covers autos that the named insured leases, hires, rents, or borrows for commercial operations (e.g., a rental cargo truck from Enterprise or Ryder).
The Employee Exclusion under Symbol 8: Symbol 8 explicitly excludes any auto leased, hired, rented, or borrowed from any of the named insured's employees, partners, LLC members, or members of their households. Those vehicles fall strictly under Symbol 9.
Symbol 9: Non-Owned Autos Only
Covers autos not owned, leased, hired, or borrowed by the named insured that are used in connection with the insured's business. This symbol is vital for protecting the named insured against vicarious liability when employees, executives, partners, or independent contractors use their personal passenger vehicles to perform business errands (e.g., delivering blueprints, driving to bank deposits, visiting client sites).
Symbol 19: Mobile Equipment Subject to Motor Vehicle Financial Responsibility Laws
Symbol 19 was introduced by ISO to close a critical coverage gap created by changes in state motor vehicle registration statutes. Certain heavy machinery, self-propelled construction units, or road maintenance vehicles that qualify under the policy definition of "mobile equipment" (such as street sweepers, asphalt spreaders, or specialized boom trucks) may be required by state law to carry motor vehicle registration or proof of financial responsibility when traveling on public roads. Symbol 19 automatically grants commercial auto liability coverage to these designated mobile units.
3. Newly Acquired Autos: Symbols 1–6 vs. Symbol 7 Rules
A critical underwriting and claims distinction tested on the licensing exam is how newly acquired vehicles are treated under the BACF.
Automatic Coverage Under Symbols 1, 2, 3, 4, 5, and 6
If Symbols 1, 2, 3, 4, 5, or 6 are shown for a coverage line, any additional or replacement auto of the same category acquired during the policy period is automatically covered from the moment of acquisition for the remainder of the policy term. The named insured is not required to report the new vehicle until the annual policy audit or renewal.
Strict 30-Day Notification Rules Under Symbol 7
Under Symbol 7 (Specifically Described Autos), automatic coverage for a newly acquired vehicle attaches only if:
- The insurer already insures all autos owned by the named insured for that specific coverage, OR the new vehicle replaces a previously scheduled auto; AND
- The named insured formally notifies the insurer within 30 days of acquiring the new vehicle and requests coverage.
| Feature | Symbols 1, 2, 3, 4, 5, 6 | Symbol 7 (Specifically Described) |
|---|---|---|
| Acquisition Scope | All newly acquired autos in the symbol class | Scheduled autos only |
| Replacement Autos | Automatic for remainder of policy period | Covered if reported within 30 days |
| Additional Autos | Automatic for remainder of policy period | Covered ONLY IF insurer insures all owned autos, AND reported within 30 days |
| Physical Damage Eligibility | Yes (Symbols 2, 3, 4, 7) | Yes (Requires specific scheduled valuation) |
| Audit Reporting | Reported at policy renewal / annual audit | Must report within strict 30-day window |
4. Matching Symbols to Exposures & Coverage Sections
On the standard ISO Business Auto Declarations Page, each coverage part is matched with one or more numerical symbols. A typical commercial policy Declarations entry appears as follows:
┌─────────────────────────────────────────────────────────────────────────┐
│ SAMPLE BUSINESS AUTO DECLARATIONS COVERAGE SCHEDULE │
├──────────────────────────┬────────┬──────────────────────┬──────────────┤
│ COVERAGE │ SYMBOL │ LIMIT OF INSURANCE │ PREMIUM │
├──────────────────────────┼────────┼──────────────────────┼──────────────┤
│ Section II: Liability │ 1 │ $1,000,000 CSL │ $14,250 │
├──────────────────────────┼────────┼──────────────────────┼──────────────┤
│ Specified Causes of Loss │ 7 │ ACV Less Deductible │ $3,800 │
├──────────────────────────┼────────┼──────────────────────┼──────────────┤
│ Collision Coverage │ 7, 8 │ ACV Less $1,000 Ded │ $6,400 │
├──────────────────────────┼────────┼──────────────────────┼──────────────┤
│ Uninsured Motorists (UM) │ 6 │ Statutory Limits │ $650 │
└──────────────────────────┴────────┴──────────────────────┴──────────────┘
Why Different Symbols Are Selected
- Liability (Symbol 1): Provides comprehensive protection against third-party lawsuits arising from any auto incident connected to the business.
- Physical Damage (Symbols 7 and 8): The business selects Symbol 7 to pay collision/comprehensive only on specific high-value owned fleet vehicles (avoiding paying physical damage premiums on older fully depreciated trucks) and adds Symbol 8 to cover hired/rental vehicle physical damage.
5. Practical Adjuster Claim Scenarios
Scenario A: Employee Personal Car on Company Errand
Case File: Apex Engineering maintains a BACF with Symbol 1 for Section II Liability and Symbol 7 for Physical Damage. An administrative assistant, driving her personal sedan to the post office to mail legal contracts for Apex, runs a stop sign and strikes an oncoming motorcyclist, causing $400,000 in bodily injury damages. The assistant carries personal auto limits of only 50/100/50.
Adjuster Analysis: Because Apex purchased Symbol 1 (Any Auto) for Liability, the policy covers Apex Engineering's vicarious liability as an employer. (Even if Apex had selected Symbols 2, 8, and 9, Symbol 9 'Non-Owned Autos' would cover Apex).
Coverage Mechanics: The assistant's personal auto policy (PAP) is Primary. Once her $50,000 per-person liability limit is exhausted, Apex's BACF responds on an Excess basis to cover the remaining $350,000. Physical damage to the employee's personal car is not covered by Apex's policy (excluded under BACF non-owned provisions).
Scenario B: Unreported Additional Vehicle Under Symbol 7
Case File: Tarheel Construction carries a BACF with Symbol 7 for both Liability and Physical Damage covering its three scheduled flatbed trucks. On June 1, Tarheel purchases an additional dump truck from an auction. On July 15 (45 days later), the dump truck causes a multi-vehicle collision resulting in $80,000 in property damage. Tarheel had never informed its insurance agent of the purchase.
Adjuster Analysis: Under Symbol 7, additional autos are covered only if reported within 30 days of acquisition. Because 45 days elapsed without notice, the newly acquired dump truck does not qualify as a covered auto under Symbol 7. The insurer will issue a formal denial of coverage for the accident.
Scenario C: Borrowed Executive Vehicle Under Symbol 8 Dispute
Case File: The CEO of Piedmont Logistics lends his personally owned luxury SUV to a company sales manager to transport prospective clients to a golf resort. The sales manager rear-ends a truck. Piedmont's BACF shows Symbol 8 (Hired Autos) for physical damage.
Adjuster Analysis: Symbol 8 explicitly excludes vehicles borrowed or rented from employees, partners, or corporate officers. The CEO's SUV does not qualify under Symbol 8. Any physical damage must be handled through the CEO's personal auto insurance.
Under the ISO Business Auto Coverage Form (CA 00 01), which Covered Auto Designation Symbol provides the broadest scope of coverage and is legally restricted to Section II Liability Coverage only?
A commercial insured carries a Business Auto Coverage Form with Symbol 7 (Specifically Described Autos) listed for Liability and Physical Damage. If the insured purchases an additional commercial truck on March 1, what condition and timeline must be met for automatic coverage to attach to the new vehicle?
An employer requires sales representatives to use their personally owned vehicles to visit commercial clients throughout North Carolina. Which Covered Auto Designation Symbol must the employer carry on its Business Auto policy to protect the business entity against vicarious liability arising from employee accidents?
Which of the following vehicles is EXCLUDED from coverage under Covered Auto Designation Symbol 8 (Hired Autos Only) on the Business Auto Coverage Form?