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-auto form; it uses covered-auto designation symbols (1-9) entered on the declarations next to each coverage rather than listing vehicles by VIN.
- Symbol 1 (Any Auto) is the broadest and the only symbol that automatically reaches owned, hired, AND non-owned autos; it is the standard choice for liability.
- Newly acquired (replacement or additional) autos are automatically covered for 30 days under Symbols 1, 2, 3, or 4; under Symbol 7 the insured must notify the insurer within 30 days to keep coverage.
- Hired autos use Symbol 8 and employee/partner personal autos used in the business use Symbol 9; a Symbol-2 risk has gaps for both.
- WHO IS AN INSURED is broad: the named insured for any covered auto, permissive users, and anyone vicariously liable, but the owner of a hired/borrowed auto and an employee using their OWN auto are excluded.
The Business Auto Coverage Form
The Business Auto Coverage Form (BACF) is the Insurance Services Office (ISO) standard, current edition CA 00 01, used to insure cars, trucks, and vans owned, hired, or used by a business. It is the commercial counterpart to the Personal Auto Policy (PAP), but it must solve a problem the PAP never faces: a business may own zero, five, or five hundred vehicles and also rent and borrow others. Rather than list every vehicle by coverage, the form uses covered-auto designation symbols to describe categories of autos.
A single Business Auto policy can activate several coverages at once: third-party liability, physical damage to the insured's own autos, auto medical payments, and uninsured/underinsured motorist (UM/UIM) coverage, plus optional endorsements.
How the Form Is Built
The form is modular — a coverage applies only when a symbol and a limit appear on the declarations.
| Section | Function |
|---|---|
| Declarations | Named insured, policy period, limits, and the symbols selected |
| Section I – Covered Autos | Defines the nine symbols and the 30-day newly-acquired 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, other insurance, transfer of rights |
| Section V – Definitions | Accident, auto, bodily injury, property damage, loss |
Covered-Auto Designation Symbols (1-9)
Each coverage line carries its own symbol, so liability can be written far broader than physical damage on the same policy.
| Symbol | Category | Plain Meaning |
|---|---|---|
| 1 | Any Auto | 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, specialty rigs |
| 5 | Owned Autos Subject to No-Fault | Owned autos in PIP/no-fault states |
| 6 | Owned Autos Subject to Compulsory UM | Owned autos where UM is mandatory |
| 7 | Specifically Described Autos | ONLY vehicles listed on the schedule |
| 8 | Hired Autos Only | Rented, leased, or borrowed (not owned) |
| 9 | Non-Owned Autos Only | Employee/partner personal autos used in business |
Note that physical damage is almost always written on Symbol 7 (scheduled) or 8 (hired), because an insurer will not pay collision on a vehicle it has never seen.
The Newly Acquired Auto Rule
When a business buys a vehicle mid-term, coverage hinges on the symbol shown.
- Under Symbols 1, 2, 3, or 4, a newly acquired auto (replacement or additional) is automatically covered for 30 days — no notice required for liability.
- Under Symbol 7 (specifically described), a replacement is covered, but an additional newly acquired auto is covered only if the insurer is notified within 30 days AND there is no similar auto already insured under the policy.
Exam trap: Symbol 1 automatically pulls in hired and non-owned exposure; a risk written Symbol 2 has gaps for rentals (needs Symbol 8) and for employee cars (needs Symbol 9).
Who Is an Insured
The insured definition is intentionally broad and has three 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 the conduct of an insured, but only to the extent of that liability (an employer for an employee's covered driving).
The key carve-outs: the owner of a hired or borrowed auto is not an insured (a rental company is not insured under your policy), and an employee is not an insured for liability while driving the employee's OWN auto. For employee-owned cars the employer relies on Symbol 9, which protects only the employer's vicarious liability; the employee's personal auto policy is primary.
Eligibility and Rating Basis
The Business Auto form fits most commercial risks except those needing the specialized Motor Carrier, Auto Dealers/Garage, or public-transport forms. Premium is built from classification factors — vehicle type, size/weight (gross vehicle weight class), radius of operation (local up to 50 miles, intermediate 51-200, long-haul over 200), use (service, retail, commercial), and territory. Liability uses primary and excess limit factors; physical damage uses the auto's original cost new and age.
Fleets of five or more self-propelled vehicles under common ownership may qualify as a fleet for rating, blending the units' experience, while smaller risks are rated per vehicle. The premium at inception is a deposit when the policy is auditable, adjusted at expiration for vehicles added or deleted mid-term.
A business is written with Symbol 2 for liability. An employee rents a car at the airport for a business trip and causes an accident. How does the policy respond?
A contractor with Symbol 1 liability buys an additional dump truck on June 1. When does coverage begin and what notice is required?
The Covered Auto Symbols 1 Through 9
The Business Auto Coverage Form assigns numbered symbols in the declarations to define which autos a coverage applies to — a guaranteed exam item:
| Symbol | Meaning |
|---|---|
| 1 | Any auto (broadest — owned, hired, non-owned) |
| 2 | All owned autos |
| 3 | Owned private passenger autos only |
| 4 | Owned autos other than private passenger |
| 5 | Owned autos requiring no-fault coverage |
| 6 | Owned autos requiring UM by law |
| 7 | Specifically described autos (scheduled) |
| 8 | Hired autos only |
| 9 | Non-owned autos only |
Symbol 1 (Any Auto) gives the broadest liability protection because it covers owned, hired, and non-owned autos and automatically picks up newly acquired vehicles. Symbol 7 is the narrowest (only scheduled autos). Physical damage cannot use Symbol 1 — it requires Symbol 2, 7, 8, or 9 because you can only insure for damage autos you own, hire, or schedule.
Trap: liability is usually written with Symbol 1; physical damage cannot be written under Symbol 1 (you cannot insure damage to autos you neither own nor control).
Which Business Auto symbol provides the broadest liability coverage by including owned, hired, and non-owned autos and automatically covering newly acquired vehicles?