12.1 Business Auto Coverage Form and Covered Auto Symbols

The Business Auto Coverage Form

The Business Auto Coverage Form (ISO form CA 00 01), current 2018 edition, is the foundation of commercial auto insurance and the most heavily tested form in this chapter. It replaces the personal auto policy for businesses and entities and combines liability and physical damage in one contract built around five sections: Section I – Covered Autos, Section II – Covered Autos Liability, Section III – Physical Damage, Section IV – Business Auto Conditions, and Section V – Definitions.

The BAP is paired with the Common Policy Declarations and Common Policy Conditions (IL 00 17) to form a complete policy. It can stand alone as a monoline policy or be a line within a Commercial Package Policy (CPP) alongside commercial property, CGL, and crime coverages. When written inside a CPP it shares the common declarations and a single policy number, but each line retains its own coverage form and limits.

A crucial structural difference from the personal auto policy is that the BAP names a business entity as insured. Coverage for individuals therefore flows from the 'who is an insured' definition: the named insured, anyone using a covered auto with permission, and anyone liable for that conduct. Employees driving an owned covered auto on business are insureds; an employee driving their OWN car is generally NOT an insured under the named insured's liability unless non-owned coverage (Symbol 9) is in force.

Covered Auto Designation Symbols

Instead of listing every vehicle, the BAP assigns a symbol number (1–9) to each coverage line on the declarations. The symbol — not a VIN schedule — defines which autos that coverage reaches. Each coverage carries its OWN symbol box, so liability is usually written on a broad symbol while physical damage is written on a narrow one.

Think of the symbols in three families. Symbols 1–7 describe OWNED-auto positions ranging from broadest (1, Any Auto) to narrowest (7, specifically described). Symbols 5 and 6 are automatic activators: they pull in PIP/no-fault and compulsory UM only in states that require them, so the insurer never has to track which state law applies. Symbols 8 and 9 are the add-ons that reach beyond owned autos.

Trap: Do not assume Symbol 1 is liability-only — it CAN be used for liability, and is the most common liability symbol, but the point is that physical damage is almost always written on Symbol 7 or 2 because the insurer must value and rate specific vehicles. A second classic trap: Symbol 8 (hired) EXCLUDES autos rented from the insured's own employees; those exposures fall under Symbol 9 (non-owned).

Newly Acquired Autos and Hired/Non-Owned

Automatic coverage for newly acquired autos runs 30 days and applies only under Symbols 1, 2, 3, or 4 (and only for the matching auto type). Symbol 7 (specifically described) gives NO automatic coverage — a newly bought vehicle is uninsured until reported. This is a classic exam distractor.

• Hired auto = a vehicle you lease, hire, rent, or borrow, EXCEPT one rented from your own employee.
• Non-owned auto = autos owned by employees/partners and used in the business (covers the company's vicarious liability, not the employee's car damage).

Worked Example

A contractor writes liability under Symbol 1 and physical damage under Symbol 7 (two scheduled trucks). It buys a third truck and crashes it on day 10. Liability is covered automatically because Symbol 1 blankets any auto. Physical damage is NOT covered — Symbol 7 has no automatic newly-acquired provision, so the truck's collision damage is the insured's own loss until the truck is reported.

Mismatched Symbols by Coverage Line

Because each coverage carries its own symbol, an exam question may pair a broad liability symbol with a restrictive physical-damage symbol and ask what happens to a borrowed or rented vehicle. A rented box truck would be covered for liability under Symbol 1 (it includes hired autos) but would have NO physical damage unless Symbol 8 and the Hired Auto Physical Damage endorsement are added. Always read the symbol for the specific coverage in question, not the policy as a whole.

The Business Auto Coverage Form Structure

The Business Auto Coverage Form (BACF) insures a commercial entity's autos for liability and physical damage and is built from a declarations, the covered-auto symbols, the coverage form, and conditions. Unlike the PAP, it can cover owned, hired, and non-owned autos and can insure entities (corporations, partnerships) rather than only individuals. The form's flexibility comes from the symbol system, which assigns coverage to categories of autos rather than listing each vehicle for every coverage.

The Covered-Auto Symbols (1 through 9)

Nine numerical symbols define which autos a coverage applies to. Symbol 1 = any auto (broadest, used for liability). Symbol 2 = owned autos only. Symbol 3/4 = owned private passenger / owned other than private passenger. Symbol 5 = owned autos subject to no-fault. Symbol 6 = owned autos subject to compulsory UM law. Symbol 7 = specifically described autos. Symbol 8 = hired autos only. Symbol 9 = non-owned autos only. Matching the right symbol to a coverage is the most heavily tested BACF skill.

Why Symbol Selection Matters

The symbol shown next to each coverage on the declarations controls the scope. Using Symbol 1 for liability gives the broadest protection, automatically covering newly acquired and even some non-owned autos, while a narrower symbol like 7 covers only scheduled vehicles and requires the insured to report additions. Physical damage cannot use Symbol 1 (you cannot insure "any auto" for collision), so it uses 7, 8, or 2/3/4. Recognizing which symbol leaves a gap, for example liability on Symbol 7 missing a newly acquired auto, is a classic exam scenario.