The Business Auto Policy (BAP) Symbols: The 9 Numbers You Must Recognize

Business auto questions are symbol questions. Learn the nine numbered coverage symbols used on the Business Auto Policy form and half the commercial auto section becomes free points.

Symbols 1 and 2: the broadest

Symbol 1 = "ANY AUTO". Broadest coverage available: applies to autos the business owns, hires, or borrows.

Symbol 2 = "OWNED AUTOS ONLY" - all autos the named insured owns, including acquired ones.

If a question asks for the broadest symbol, the answer is 1. If it asks what newly acquired owned autos fall under automatically, you are choosing between 1 and 2.

Symbols 3 through 9: the picks

Symbol 3 = owned private passenger autos only.

Symbol 4 = owned autos other than private passenger (commercial vehicles like trucks and tractors).

Symbol 5 = owned autos the named insured is required to insure for liability - no-fault and uninsured motorist stacks especially.

Symbol 6 = owned autos the insured is required to insure for physical damage - usually autos under a lease or loan.

Symbol 7 = specifically described autos only. The most restricted owned-auto symbol: exactly the autos listed in the declarations.

Symbol 8 = hired autos. Rental cars and other vehicles the insured hires - never autos owned by employees.

Symbol 9 = non-owned autos: autos the business doesn't own but uses in its business, like an employee's car used to run errands.

The traps to expect

• A question tells you an employee drives their own car for work and asks about symbol 8. That is symbol 9 (non-owned), not hired. Hired means rented, not borrowed from staff.

• Employee-owned cars used for business are almost never covered autos for physical damage. Symbol 9 is liability-only in practice.

• "Symbol 7 plus newly acquired autos": with symbol 7 alone, newly acquired autos are autos generally covered for 14 days only if reported. Know that symbol 7 is the one that requires the new auto to be reported during the policy period for coverage to continue.

• Business auto physical damage coverage parts: comprehensive, specified cause of loss, and collision - each a separate coverage choice, unlike the personal auto policy.

This is standard exam content; actual policies and state rules vary.

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