9.2 Covered Auto Designation Symbols
Key Takeaways
- There are NINE BAP symbols (1-9); each coverage line on the declarations carries its own symbol, so liability and physical damage are usually written differently.
- Symbol 1 (Any Auto) is standard for liability because it blankets owned, hired, and non-owned exposure with no gaps.
- Symbols 8 (hired) and 9 (non-owned) are add-ons that fill the rental and employee-car gaps left by owned-only symbols.
- Physical damage is usually Symbol 7 (specifically described) or Symbol 2 (owned) because the insurer must value and rate specific vehicles.
- Automatic newly-acquired-auto coverage runs 30 days and applies only under Symbols 2, 3, or 4 (and only for the matching auto type); Symbol 7 gives NO automatic coverage.
Why Symbols Exist
A business fleet is fluid: vehicles are bought, sold, rented, and borrowed constantly. Instead of endorsing each vehicle on and off, the BAP lets the underwriter assign a symbol to each coverage. The symbol number — not a VIN list — defines which autos that coverage reaches. Because each coverage line on the declarations has its own symbol box, a policy commonly reads Symbol 1 for liability but Symbol 7 for physical damage.
The Nine Symbols, Decoded
| Symbol | Includes | Excludes | Typical Use |
|---|---|---|---|
| 1 – Any Auto | Owned, hired, AND non-owned | Nothing | Liability (broadest) |
| 2 – Owned Only | All owned autos, any type | Hired & non-owned | Liability/phys dmg on owned fleet |
| 3 – Owned Private Passenger | Owned cars/SUVs | Owned trucks; hired/non-owned | Sales-force car fleets |
| 4 – Owned Other Than PP | Owned trucks/vans/specialty | Owned cars; hired/non-owned | Contractors, delivery |
| 5 – Owned Subject to No-Fault | Owned autos in PIP states | Autos in non-no-fault states | Activates PIP automatically |
| 6 – Owned Subject to Compulsory UM | Owned autos where UM required | Autos in non-UM states | Activates UM automatically |
| 7 – Specifically Described | Only scheduled vehicles | Everything not listed | Physical damage |
| 8 – Hired Only | Rented/leased/borrowed | Owned & non-owned | Adds rental exposure |
| 9 – Non-Owned Only | Employee/partner personal autos | Owned & hired | Adds employee-car liability |
Symbols 5 and 6 — the State-Mandate Symbols
Symbols 5 and 6 are commonly misread. They do NOT add a category of vehicle; they automatically activate state-mandated coverages. Symbol 5 makes owned autos pick up no-fault / Personal Injury Protection (PIP) wherever required (Florida, Michigan, New York, and others). Symbol 6 does the same for compulsory uninsured motorist (UM) coverage. They ride alongside the liability symbol, not instead of it.
Why Liability and Physical Damage Differ
- Liability is usually Symbol 1 — the business wants no gaps if any vehicle hurts a third party.
- Physical damage is usually Symbol 7 or 2 — the insurer must know the year, make, model, and value to set the premium and pay a loss, so blanket Symbol 1 physical damage is rarely offered.
The 30-Day Newly-Acquired-Auto Rule
This is heavily tested. Automatic coverage for a vehicle you buy mid-term depends entirely on the symbol:
| Symbol on the Coverage | Newly Acquired Auto? | Reporting |
|---|---|---|
| 2 (all owned) | Auto-covered 30 days | Report within 30 days to keep it |
| 3 (owned PP) | Auto-covered 30 days IF it is a private passenger auto | Report within 30 days |
| 4 (owned other than PP) | Auto-covered 30 days IF it is a truck/van | Report within 30 days |
| 7 (specifically described) | NO automatic coverage | Must endorse before loss |
Worked example: A contractor's BAP shows Symbol 4 for liability and Symbol 7 for physical damage. The contractor buys a new dump truck and crashes it 10 days later. Liability follows the truck (Symbol 4, within 30 days). But physical damage does NOT — Symbol 7 covers only scheduled units, and the truck was never added. The contractor pays for the truck's own damage out of pocket.
Putting Symbols Together
| Business Situation | Liability | Physical Damage | Add-Ons |
|---|---|---|---|
| Large mixed fleet | 1 | 2 or 7 | — |
| Sales reps, all cars | 1 (or 3) | 7 | — |
| Frequently rents trucks | 1 | 7 | 8 (hired phys dmg) |
| Employees run errands | 1 | 7 | 9 (non-owned liab) |
Trap to memorize: Symbol 8 is hired, Symbol 9 is non-owned — students reverse them. Hired = the business pays to use it (rental). Non-owned = a vehicle the business neither owns nor hires (employee's own car).
Reading Symbols on a Declarations Page
On the BAP declarations, each coverage occupies its own row with a symbol box. A typical small-contractor schedule might read:
- Covered Autos Liability: Symbol 1 — $1,000,000 combined single limit
- Auto Medical Payments: Symbol 2 — $5,000
- Uninsured Motorist: Symbol 6 — $1,000,000
- Comprehensive: Symbol 7 — $500 deductible
- Collision: Symbol 7 — $1,000 deductible
Reading this, liability blankets every auto (owned, hired, non-owned), but physical damage reaches only the trucks actually scheduled. If the contractor rents a backhoe-hauling trailer, liability follows it (Symbol 1 includes hired), yet there is no physical-damage protection on the rental unless Symbol 8 hired-auto physical damage is added.
Symbol Hierarchy and Common Mistakes
| Misconception | Reality |
|---|---|
| 'Symbol 1 covers physical damage on any car' | Insurers rarely write Symbol 1 physical damage — they need a scheduled value (Symbol 7) |
| 'Owned-only includes rentals' | Symbol 2 excludes hired; add Symbol 8 |
| 'Symbol 9 protects the employee' | Symbol 9 protects only the named insured's vicarious liability |
| 'New trucks are always auto-covered 30 days' | Only under Symbols 2/3/4 — never Symbol 7 |
Memorizing these distinctions answers a large share of commercial-auto questions, because exam writers love to pair a symbol with a fact pattern that hides a gap.
A company's BAP shows Symbol 2 for liability. They buy a new van and wreck it 12 days later. Is liability provided for that van?
A firm uses Symbol 7 (specifically described autos) for physical damage. They buy a truck, never add it, and it is stolen on day 45. Is the theft covered?
What do Symbols 5 and 6 actually do on a Business Auto Policy?