12.1 Business Auto Coverage Form and Covered Auto Symbols
Key Takeaways
- The Business Auto Coverage Form (ISO CA 00 01) is the standard commercial-vehicle policy and the commercial cousin of the Personal Auto Policy.
- Covered-auto designation symbols 1-9 describe categories of autos, and each coverage line on the declarations carries its own symbol.
- Symbol 1 (Any Auto) is the broadest and is the only symbol that automatically includes hired and non-owned autos.
- The who-is-an-insured definition is broad: named insured, permissive users, and anyone vicariously liable.
- Newly acquired autos are automatically covered for a limited window under owned-auto symbols.
What the Business Auto Coverage Form Is
The Business Auto Coverage Form (BACF) is the Insurance Services Office (ISO) standard form for insuring cars, trucks, and vans a business owns, rents, or borrows. The current edition is CA 00 01, and the form is the commercial counterpart of the Personal Auto Policy (PAP).
A business cannot be insured the same way a household is. A family lists two or three cars by vehicle identification number (VIN); a contractor might own forty vehicles, rent box trucks weekly, and send employees on errands in personal cars. The BACF solves this by describing categories of autos with covered-auto designation symbols instead of listing each vehicle.
One Business Auto policy can activate liability, physical damage, auto medical payments, and uninsured/underinsured motorist (UM/UIM) coverage, plus optional endorsements.
How the Form Is Structured
The BACF is modular: a coverage exists only when a symbol and a limit appear on the declarations.
| Section | Function |
|---|---|
| Declarations | Named insured, policy period, the symbols and limits chosen |
| Section I - Covered Autos | Defines the nine symbols and the newly-acquired-auto rule |
| 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, transfer of rights, other insurance |
| Section V - Definitions | Defines accident, auto, loss, bodily injury |
Because each coverage carries its own symbol, liability can be written far broader than physical damage on the same policy.
Covered-Auto Designation Symbols (1-9)
The symbol entered next to each coverage on the declarations tells you which autos that coverage applies to.
| Symbol | Category | Plain Meaning |
|---|---|---|
| 1 | Any Auto | All autos: owned, hired, and non-owned (broadest) |
| 2 | Owned Autos Only | Every auto the insured owns, any type |
| 3 | Owned Private Passenger | Owned cars/SUVs only, not trucks |
| 4 | Owned, Other Than Private Passenger | Owned trucks, vans, special rigs |
| 5 | Owned Autos Subject to No-Fault | Owned autos in no-fault/PIP states |
| 6 | Owned Autos Subject to Compulsory UM | Owned autos where UM is mandatory |
| 7 | Specifically Described Autos | ONLY scheduled vehicles |
| 8 | Hired Autos Only | Rented, leased, borrowed (not owned) |
| 9 | Non-Owned Autos Only | Employee/partner personal autos used for business |
Exam trap: Symbol 1 is the only symbol that automatically pulls in hired and non-owned exposure. A risk written on Symbol 2 has a gap for rentals (add 8) and employee cars (add 9).
Business Auto Coverage Form and Covered-Auto Symbols
The Business Auto Coverage Form (BACF/CA 00 01) is the workhorse commercial auto policy. Rather than listing vehicles for every coverage, it uses covered-auto symbols (1-9) entered next to each coverage on the declarations to define which autos are covered for that coverage. Mastery of the symbols is the single most tested commercial-auto skill.
| Symbol | Meaning |
|---|---|
| 1 | Any auto (broadest 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 UM |
| 7 | Specifically described (scheduled) autos |
| 8 | Hired autos only |
| 9 | Non-owned autos only |
A core rule: Symbol 1 (Any Auto) is used for liability because it picks up owned, hired, non-owned, and newly acquired autos automatically; physical damage cannot use symbol 1 (you can't insure damage to a non-owned car you don't control), so physical damage uses symbols 7, 8, or 2.
Worked scenario: A distributor wants the broadest liability plus collision/comprehensive on its 10 owned trucks. The agent enters symbol 1 next to Liability (covering any auto, including a rented forklift-truck or an employee's car on business) and symbol 7 next to Collision and Comprehensive (the 10 scheduled trucks). If the firm later buys an 11th truck, the newly acquired auto rule extends liability automatically under symbol 1, but physical damage on the new truck must be reported (commonly within 30 days) because symbol 7 lists specific autos. Choosing the right symbol per coverage is the recurring exam trap.
A bakery wants its commercial auto liability to cover its owned delivery vans, rented trucks during holidays, AND employees running errands in their own cars - all under one symbol. Which symbol accomplishes this?
Who Is an Insured
The BACF insured definition is intentionally broad and operates in tiers:
- The named insured - for any covered auto.
- Permissive users - anyone using a covered auto the named insured owns, hires, or borrows with permission.
- Anyone legally responsible for an insured's conduct, but only to the extent of that liability (for example, an employer liable for an employee's driving).
Key carve-outs the exam loves: the owner of a hired or borrowed auto is generally not an insured, so a rental company does not become an insured under your policy. An employee driving the employee's own car is not an insured for liability; the employer relies on Symbol 9 to protect its own vicarious liability, and the employee's personal auto policy is primary.
Newly Acquired Autos and Rating
Under the owned-auto symbols (2, 3, 4), a vehicle the insured acquires during the policy period is automatically covered. For physical damage, the insured must notify the insurer within 30 days to keep coverage on a newly acquired auto when the policy already provides that coverage on other autos.
Commercial auto is fleet-rated (typically nine or more self-propelled power units, blending the fleet's loss experience) or schedule-rated for smaller risks. The premium at inception is a deposit premium; many policies are auditable, with the final premium adjusted at expiration for vehicles added or deleted mid-term.
| Feature | BACF (CA 00 01) | Personal Auto Policy |
|---|---|---|
| Covered autos | By symbol | Listed by VIN |
| Who is insured | Broad (permissive/vicarious) | Narrow (insured + family) |
| Rating basis | Fleet rating available | Per-vehicle |
Reading the Symbols on a Declarations Page
Because each coverage line carries its own symbol, the producer must read the declarations one row at a time. A typical small contractor might show Symbol 7 for physical damage (only the scheduled trucks) but Symbol 1 for liability, so liability is broad while physical damage is narrow.
This layering is deliberate. Physical damage is paid on the insured's own vehicles, so insurers prefer to limit it to scheduled or owned autos. Liability protects the public, so writing it as broadly as possible (Symbol 1) reduces the risk of an uncovered claim.
Why this matters on the exam: a stem may give a declarations page with mixed symbols and ask whether a rented truck has collision coverage. If physical damage is Symbol 7 (scheduled only), the rented truck has no collision unless hired-auto physical damage is added - even though liability under Symbol 1 covers it.
A policy shows Symbol 1 for Covered Autos Liability but Symbol 7 for Physical Damage, listing only two owned trucks. The insured rents a third truck and it is damaged in a collision. How does coverage respond?