A commercial auto policy that includes auto liability and auto physical damage coverages; other coverages are available by endorsement. Except for auto-related businesses and motor carrier or trucking firms, the business auto policy (BAP) addresses the needs of most commercial entities as respects auto insurance.
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Personal auto policies normally exclude any business use of a vehicle. The business auto policy (BAP) is designed to cover vehicles used for and owned by businesses. While the same general coverage is available on both forms (e.g., bodily injury and property damage liability, medical payments, collision, comprehensive, and uninsured motorists), there are some differences. One difference is that coverage is indicated with “symdesignations” on the BAP. These are as follows:Symbol 1—Any Auto. This is the broadest possible coverage available under the BAP. It covers all autos owned by, leased, rented, borrowed, or hired used in the business of the insured. Additionally, it covers vehicles that belong to employees who use their vehicles in their jobs. While many insurance companies are willing to write “Any Auto” coverage for liability, it is less common for other types of coverage such as comprehensive andcollision.
Symbol 2- -Owned Autos Only. Only those autos owned by the named insured are covered. Thus, non-owned, hired, borrowed, and leased autos are not covered. However, certain non-owned trailers, when pulled by an owned vehicle, are covered. Symbol 3-Owned Private Passenger Autos Only. This is the same coverage as Symbol 2 except that the auto must be a private passenger auto. The BAP does not, however, define a private passenger auto. It is incumbent upon the insured to get the insurance company to describe in writing what a private passenger auto is in order to make sure coverage is as intended.
Symbol 4-Owned Autos Other Than Private Passenger. As the name suggests, this is for fleets of vehicles that do not meet the definition of private passenger. As with Symbol 3, it is necessary to agree up front to the definition of private passenger auto.
Symbol 5-Owned Autos Only Subject to NoFault. This symbol is used in No-Fault states. (See
No-Fault).
Symbol 6-Owned Autos Only Subject to Compulsory Uninsured Motorists. This symbol is used in states where the insured is not allowed to reject uninsured motorist coverage. (See Uninsured Motorist).
Symbol 7-Listed Autos Only. Only autos listed in the policy are
covered. This symbol is more restrictive than the first six. Symbol 8-Hired Autos Only. Symbol 8 does not cover any autos leased, hired, rented, or borrowed from any named insured, employees, partners, or members of a limited liability corporation (LLC). Thus, the autos must be hired from an independent third party.
Symbol 9-Non-owned Autos Only. This coverage does not include any car owned, leased, hired, rented, or borrowed by the insured. It does include the vehicles of employees used in the business.
It is important to note that the designation symbol must be shown next to each desired coverage. For example, an insured may have a BAP with Symbol 1 next to liability, medical payments, and uninsured motorists, and a Symbol 2 next to comprehensive and collision.
Newly Acquired Autos
Symbols
1, 2, 3, 4, 5, and 6 extend coverage to newly acquired autos with the same coverage as applies to current autos. Newly acquired autos under Symbol 7 are covered if the following two conditions are met. First, the company has to insure all of the insured’s autos or the new auto has to replace an existing auto. Second, the insured must report the new auto within 30 days of acquiring it.
Other Vehicles
The BAP also covers certain other types of vehicles for liability coverage. These include:
· Certain trailers with a load capacity of 2,000 pounds or less.
Mobile equipment when being hauled by a covered trailer or carried on a covered auto. Mobile equipment is normally covered under the Commercial General Liability policy, otherwise. Temporary substitute autos.