8.3 Business Auto Coverage Form (BACF), Symbols 1–9, Liability & Physical Damage
Key Takeaways
- The ISO Business Auto Coverage Form (CA 00 01) utilizes numerical coverage symbols 1 through 9 (and Symbol 19) in the Declarations to specify which vehicles qualify as covered autos for each distinct coverage.
- Symbol 1 ('Any Auto') provides the broadest liability coverage possible and can only be used for liability, while Symbol 7 ('Specifically Described Autos') provides the narrowest coverage, requiring newly acquired vehicles to be reported within 30 days.
- Section II Liability covers named insureds and permissive users, but specifically excludes the owner of a hired or borrowed auto and employees using their personal vehicles for business (unless endorsed with CA 99 33).
- Section III Physical Damage provides three options: Comprehensive (all perils except collision or overturn), Specified Causes of Loss (a budget alternative naming 11 specific perils), and Collision (impact with another object or overturn).
- Key commercial auto endorsements include Drive Other Car (DOC) coverage for executives without personal autos, Employees as Insureds (CA 99 33), and Auto Medical Payments (CA 99 03).
Business Auto Coverage Form (BACF), Symbols 1–9, Liability & Physical Damage
Exam Focus: The New York Series 17-70 exam tests your mastery of the ISO Business Auto Coverage Form (CA 00 01). You must know the exact numerical definitions and practical scopes of Symbols 1 through 9, the definitions and exclusions of Who Is an Insured under Section II Liability, the distinctions among Comprehensive, Specified Causes of Loss, and Collision physical damage coverages, and the function of key endorsements like Drive Other Car (DOC).
Structure of the Business Auto Coverage Form (CA 00 01)
Because the standard CGL policy excludes liability arising from the ownership, maintenance, or use of motor vehicles, commercial auto risks must be insured under the Business Auto Coverage Form (CA 00 01). The policy is structured into five operational sections:
- Section I – Covered Autos: Explains the numerical coverage symbols that trigger coverage for different classes of vehicles.
- Section II – Covered Autos Liability Coverage: Defines the insuring agreement, who is an insured, supplementary payments (defense outside limits), and liability exclusions.
- Section III – Physical Damage Coverage: Outlines first-party damage options: Comprehensive, Specified Causes of Loss, Collision, and Towing and Labor.
- Section IV – Business Auto Conditions: Covers duties after an accident, subrogation, policy territory, and other insurance.
- Section V – Definitions: Clarifies terms such as auto, mobile equipment, bodily injury, property damage, and pollutants.
Business Auto Coverage Symbols (Symbols 1–9 & 19)
The BACF uses a unique, shorthand system of numerical coverage symbols displayed on the Declarations page next to each coverage to designate exactly which categories of vehicles are covered. Understanding these symbols is mandatory for claims adjusters:
| Symbol | Name | Description & Underwriting Rules |
|---|---|---|
| 1 | Any Auto | Broadest liability coverage available. Covers any auto, whether owned, hired, rented, borrowed, or non-owned. Can only be used for liability coverage; cannot be used for physical damage. Automatically covers vehicles acquired during the policy term. |
| 2 | Owned Autos Only | Covers all autos owned by the named insured, including those acquired after policy inception. Includes trailers towed by owned vehicles. Often used for physical damage when the insured owns its fleet. |
| 3 | Owned Private Passenger Autos Only | Covers only private passenger type autos (sedans, SUVs, station wagons) owned by the named insured. Commercial trucks and vans are excluded under this symbol. |
| 4 | Owned Autos Other Than Private Passenger | Covers all owned vehicles except private passenger autos (e.g., dump trucks, delivery vans, tractor-trailers, buses). Often combined with Symbol 3 for different deductible levels. |
| 5 | Owned Autos Subject to No-Fault | Covers owned autos required to have Personal Injury Protection (PIP) benefits under state no-fault statutes (such as New York's Comprehensive Motor Vehicle Insurance Reparations Act). |
| 6 | Owned Autos Subject to Compulsory UM Law | Covers owned autos licensed or principally garaged in states where Uninsured Motorists (UM) coverage is mandatory and cannot be rejected. |
| 7 | Specifically Described Autos Only | Narrowest coverage available. Covers only the specific vehicles listed in the policy schedule on the Declarations page. Newly acquired autos rule: Covered only if (1) the insurer already covers all owned autos or the new auto replaces a scheduled auto, and (2) the insured reports the new vehicle within 30 days. |
| 8 | Hired Autos Only | Covers autos leased, hired, rented, or borrowed by the named insured from third parties. Exclusion: Does not cover autos leased, rented, or borrowed from employees, partners, or LLC members. |
| 9 | Non-Owned Autos Only | Covers autos used in the named insured's business that are not owned, leased, hired, or borrowed by the business. Primary example: employees using their personal cars on company business (errands, client visits). Protects the employer's vicarious liability. |
| 19 | Mobile Equipment Subject to Motor Vehicle Laws | Covers land vehicles that would normally be classified as "mobile equipment" (e.g., road-paving equipment, forklifts) but are subject to state compulsory motor vehicle registration or financial responsibility laws. |
┌─────────────────────────────────────────────────────────────────────────────┐
│ BACF SYMBOL BREADTH COMPARISON │
├─────────────────────────────────────────────────────────────────────────────┤
│ SYMBOL 1 (Any Auto) ──────────────────────────► Broadest (Liability only) │
│ SYMBOLS 2, 3, 4 (Owned Autos Classes) ───────► Moderate (Automatic new) │
│ SYMBOLS 8 & 9 (Hired & Non-Owned) ────────────► Transactional / Vicarious │
│ SYMBOL 7 (Specifically Described) ────────────► Narrowest (30-day notice) │
└─────────────────────────────────────────────────────────────────────────────┘
Section II: Covered Autos Liability Coverage
Under Section II, the insurer agrees to pay all sums an insured legally must pay as damages because of bodily injury or property damage caused by an accident resulting from the ownership, maintenance, or use of a covered auto.
Who Is an Insured?
The BACF defines three categories of insureds:
- The Named Insured: The individual or business entity designated on the Declarations, for any covered auto.
- Permissive Users: Anyone using a covered auto owned, hired, or borrowed by the named insured with the named insured's permission.
- Vicariously Liable Parties: Anyone liable for the conduct of an insured, to the extent of that liability.
Critical Exclusions to "Who Is an Insured"
The policy explicitly carves out exceptions where a driver is not an insured, even if driving with permission:
- Owner of a Hired/Borrowed Auto: The person or rental company from whom the named insured leases, hires, or borrows an auto is not an insured (e.g., if a firm rents a truck from Enterprise, the driver is covered, but Enterprise itself is not protected as an insured under the firm's policy).
- Employee Using Their Own Car: An employee is not an insured while using an auto owned by that employee or a member of their household. When an employee drives their personal vehicle to run a company errand, the employer is protected under Symbol 9 against vicarious liability, but the employee must rely on their own personal auto policy (PAP) unless the commercial policy includes the Employees as Insureds endorsement (CA 99 33).
- Auto Repair/Service Businesses: Anyone using a covered auto while working in an auto sales, servicing, repairing, or parking business.
Supplementary Payments & Defense
Similar to the CGL, the insurer has the right and duty to defend any suit seeking covered damages. Defense costs are paid outside the limits of liability (they do not erode the policy limit). The duty to defend ends when the policy limit is exhausted by payments of judgments or settlements.
Section III: Physical Damage Coverage
Section III provides first-party property coverage for physical loss or damage to covered commercial autos under three primary insuring agreements:
┌─────────────────────────────────────────────────────────────────────────────┐
│ BACF PHYSICAL DAMAGE COVERAGES │
├─────────────────────────────────────────────────────────────────────────────┤
│ COMPREHENSIVE COVERAGE: │
│ Covers direct and accidental loss from ANY cause EXCEPT collision or │
│ overturn (fire, theft, vandalism, hail, flood, hitting animal, glass). │
│ │
│ SPECIFIED CAUSES OF LOSS: │
│ Budget alternative covering ONLY 11 listed perils (fire, lightning, theft, │
│ wind, hail, earthquake, flood, vandalism, sinking/derailment). │
│ │
│ COLLISION COVERAGE: │
│ Covers impact with another object (vehicle, pole, tree) or overturn/upset. │
└─────────────────────────────────────────────────────────────────────────────┘
1. Comprehensive Coverage
Covers direct and accidental loss or damage to a covered auto from any cause except collision or overturn. Perils covered include:
- Glass breakage;
- Hitting a bird or animal (deer strike);
- Falling objects (falling tree branches);
- Fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, and vandalism.
2. Specified Causes of Loss
A limited, lower-cost alternative to Comprehensive coverage designed for large fleets where full comprehensive coverage would be cost-prohibitive. It covers only eleven specific perils:
- Fire, lightning, or explosion;
- Theft;
- Windstorm, hail, or earthquake;
- Flood;
- Vandalism or malicious mischief;
- The sinking, burning, collision, or derailment of any conveyance transporting the covered auto.
3. Collision Coverage
Covers loss or damage to a covered auto caused by:
- The auto's collision with another object (another vehicle, telephone pole, guardrail, building); or
- The auto's overturn (rollover).
Physical Damage Exclusions
Adjusters must enforce the standard physical damage exclusions under Section III:
- Wear and tear, freezing, mechanical or electrical breakdown;
- Blowouts, punctures, or other road damage to tires (unless caused by other covered perils such as fire or theft);
- Radar and laser detection equipment;
- Audio, visual, and electronic data communication equipment, unless permanently installed in the vehicle;
- Diminution in value following a repair.
Essential Business Auto Endorsements
In New York adjusting practice, the following endorsements are frequently encountered:
Drive Other Car (DOC) Coverage (CA 99 10)
Designed for business owners, corporate officers, and key executives who are provided a company car and do not own a personal vehicle or carry a Personal Auto Policy (PAP). If the executive or their spouse rents or borrows a non-company car for personal vacation or business travel, the standard BACF provides no coverage. The Drive Other Car endorsement extends business auto liability, medical payments, comprehensive, and collision coverages to the named individual and resident spouse when driving non-owned, borrowed, or rented passenger vehicles for personal use.
Employees as Insureds (CA 99 33)
Modifies Section II of the BACF to include any employee as an insured while using a covered auto they own, hire, or borrow in the named insured's business or personal affairs. This eliminates the standard exclusion and protects the employee directly under the company's liability limits.
Auto Medical Payments Coverage (CA 99 03)
Commercial auto policies do not automatically include medical payments coverage. This endorsement adds medical payments coverage for the named insured, employees, and passengers injured while occupying a covered auto, paid on a no-fault basis.
A corporate commercial client requests the broadest possible auto liability coverage under the ISO Business Auto Coverage Form so that any auto utilized in its enterprise—whether owned, hired, rented, borrowed, or non-owned—is covered without needing to be scheduled. Which symbol must be entered for liability on the Declarations?
An employee uses their personally owned vehicle to deliver office supplies to a remote company branch. While en route, the employee negligently causes a multi-vehicle collision. Under the employer's standard, unendorsed Business Auto Coverage Form with Symbols 1, 8, and 9 selected for liability, how does the policy respond?
While parked outside a job site during a severe thunderstorm, a covered commercial van is crushed by a falling oak tree branch, destroying the windshield and roof. Under Section III (Physical Damage) of the Business Auto Coverage Form, how is this loss properly categorized and adjusted?