12.1 Business Auto Coverage Form and Covered Auto Symbols
Key Takeaways
- The Business Auto Coverage Form (BACF), ISO form CA 00 01, is the foundation policy for most commercial fleets and is built from a Declarations page, Section I (Covered Autos), Section II (Liability), Section III (Physical Damage), Section IV (Conditions), and Section V (Definitions).
- Covered Auto Symbols 1 through 9 are entered on the Declarations to define which vehicles get which coverage; the symbol controls everything, so a liability symbol of 7 means only specifically scheduled autos have liability.
- Symbol 1 (Any Auto) is the broadest and is normally available only for liability, while Symbol 2 (Owned Autos Only) plus Symbols 8 and 9 (Hired and Non-Owned) are layered to build complete protection.
- Symbols 7 (Specifically Described Autos), 8 (Hired Autos), and 9 (Non-Owned Autos) are the only symbols available for newly acquired auto automatic coverage and physical damage in many programs.
- Reading the symbol next to each coverage on the Declarations is the single most tested commercial-auto skill on the licensing exam.
The Business Auto Coverage Form (CA 00 01)
The Business Auto Coverage Form (BACF), published by the Insurance Services Office (ISO) as form CA 00 01, is the workhorse contract for commercial vehicle exposures. A complete Business Auto Policy (BAP) is assembled from the BACF plus a Declarations page and applicable endorsements.
The form is organized into five sections. Section I covers Covered Autos, Section II is Covered Autos Liability Coverage, Section III is Physical Damage Coverage, Section IV is Business Auto Conditions, and Section V is Definitions.
Why the Declarations drive everything
Unlike a personal auto policy, the BACF does not automatically cover "your car." Instead, the Declarations assign a numeric Covered Auto Symbol to each coverage. Whatever vehicles fall inside that symbol's definition are the only vehicles that receive that coverage.
This means the same policy can show Symbol 1 beside Liability but Symbol 7 beside Comprehensive. A producer who ignores the symbol next to each line of coverage will misjudge the entire policy. The symbol is the gatekeeper.
The nine Covered Auto Symbols
| Symbol | Meaning | Common use |
|---|---|---|
| 1 | Any Auto | Broadest; liability only |
| 2 | Owned Autos Only | All owned vehicles, current and future |
| 3 | Owned Private Passenger Autos Only | Owned cars, not trucks/trailers |
| 4 | Owned Autos Other Than Private Passenger | Owned trucks and trailers |
| 5 | Owned Autos Subject to No-Fault | Triggers PIP automatically |
| 6 | Owned Autos Subject to Compulsory UM Law | Triggers UM where required |
| 7 | Specifically Described Autos | Only the autos listed/scheduled |
| 8 | Hired Autos Only | Autos leased, hired, rented, or borrowed |
| 9 | Non-Owned Autos Only | Employee/partner autos used in business |
Exam trap: Symbol 1 is the broadest because it picks up newly acquired, hired, and non-owned autos automatically for liability. But Symbol 1 is generally not offered for physical damage, because the insurer cannot value autos it has never seen. Physical damage usually uses Symbols 2, 3, 4, 7, 8, or 9.
Building a complete program
Because Symbol 1 is liability-only, a common construction is:
- Liability: Symbol 1 (Any Auto)
- Physical Damage (Comp/Collision): Symbol 7 (Specifically Described Autos) plus Symbol 8 (Hired) where rented vehicles need coverage
- Hired and Non-Owned Liability: captured under Symbol 1, or added explicitly with Symbols 8 and 9 if a narrower owned symbol (like 2) is used for liability
A business that owns no vehicles but whose employees drive their own cars on company errands needs Symbol 8 and Symbol 9 for liability so the firm has Hired and Non-Owned protection. Choosing Symbol 2 alone would leave the firm uninsured because it owns nothing.
Newly acquired autos: automatic coverage for newly acquired vehicles applies only under symbols that include future owned autos (1, 2, 3, 4, 5, 6). Symbol 7 does not automatically pick up a new vehicle; the insured must report it, generally within 30 days for it to be covered like a scheduled auto.
A contractor's Business Auto policy shows Symbol 1 next to Liability and Symbol 7 next to Comprehensive and Collision. The contractor buys a new dump truck and is in an at-fault accident two days later before reporting it. How does coverage respond?
A consulting firm owns zero vehicles but its staff drive personal cars to client sites. Which covered-auto symbols should the producer schedule for liability?
The Covered-Auto Symbol Table
Every coverage on the Business Auto declarations is activated by a numbered symbol, and reading those symbols is the single most-tested commercial-auto skill:
| Symbol | Covered Autos |
|---|---|
| 1 | Any Auto (broadest; liability only) |
| 2 | Owned Autos Only |
| 3 | Owned Private Passenger Autos Only |
| 4 | Owned Autos Other Than Private Passenger |
| 5 | Owned Autos Subject to No-Fault |
| 6 | Owned Autos Subject to Compulsory UM |
| 7 | Specifically Described Autos |
| 8 | Hired Autos Only |
| 9 | Non-Owned Autos Only |
The symbol next to each coverage controls everything: a liability symbol of 7 means only the autos listed on the schedule have liability, while Symbol 1 covers any auto the insured operates. Symbols 8 (hired) and 9 (non-owned) are layered on to fill the gaps Symbol 2 leaves.
How Symbols Build Complete Protection
Because Symbol 1 (Any Auto) is normally available only for liability, a complete commercial-auto program layers several symbols. Physical-damage coverage cannot use Symbol 1; it must use Symbol 7 (specifically described) plus, where needed, Symbol 8 (hired) for rented vehicles. Automatic coverage for newly acquired autos is granted only under symbols that include owned autos (1, 2, 3, 4) - if the schedule uses Symbol 7, a newly purchased vehicle must be added by endorsement to be covered.
A worked reading of a declarations line: if Liability shows Symbol 1, Physical Damage shows Symbol 7, and Hired shows Symbol 8, then any auto has liability, only scheduled autos have physical damage, and rented autos add liability. Misreading these symbols is the most common cause of an uncovered commercial-auto loss, so the exam repeatedly asks which autos a given symbol set actually protects.
A Business Auto policy shows Symbol 7 for Physical Damage. The insured buys a new delivery van and crashes it the next week without reporting it. Why might physical damage NOT apply?
Sections of the Business Auto Form
Understanding where each rule lives helps decode a commercial-auto question. The Business Auto Coverage Form (CA 00 01) is organized into a Declarations page plus five sections: Section I - Covered Autos (the symbol assignments), Section II - Covered Autos Liability, Section III - Physical Damage, Section IV - Business Auto Conditions (loss duties, other insurance, two-or-more-policies), and Section V - Definitions. A loss-settlement question is answered in Section III, a defense-duty question in Section II, and a who-is-an-insured question in Section II's insured definition.
The insured under covered-autos liability includes the named insured for any covered auto, anyone using a covered auto the insured owns, hires, or borrows with permission (the omnibus clause), and anyone liable for that use. A borrowed-auto exception and an employee-using-own-auto limitation mean the exam often asks whether a permissive user or an employee in a personal car is an insured - the answer depends on the symbols and the omnibus language working together.