A company has a BAP with Symbol 2 for liability coverage. They purchase a new delivery truck. How long is this vehicle automatically covered?

30 days. When Symbol 2 (Owned Autos Only) is used, newly acquired autos of the same type are automatically covered for 30 days. The insured must report the new vehicle within that period to continue coverage.

Which covered auto symbol would provide physical damage coverage for a rented vehicle?

Symbol 8 - Hired Autos Only. Symbol 8 (Hired Autos Only) covers vehicles that are rented, leased, or borrowed. This is important for companies that frequently rent vehicles for business use and want physical damage coverage on those rentals.

A company uses Symbol 7 (Specifically Described Autos) for physical damage coverage. They buy a new truck but forget to add it to the policy. After 45 days, the truck is stolen. Is the theft covered?

No, because Symbol 7 only covers specifically listed vehicles. Symbol 7 only covers vehicles specifically listed in the declarations. There is NO automatic coverage for newly acquired vehicles under Symbol 7. The company should have used Symbol 2 if they wanted automatic coverage for new acquisitions.

Key Takeaways

There are NINE covered auto symbols (1-9), and different symbols can be used for different coverages within the same policy.
Symbol 1 (ANY AUTO) is the most common for LIABILITY because it provides blanket coverage for all vehicles regardless of ownership.
Symbols 8 (HIRED AUTOS) and 9 (NON-OWNED AUTOS) are critical for businesses that rent vehicles or have employees use personal cars for work.
Physical damage coverage typically uses Symbol 2 (OWNED AUTOS) or Symbol 7 (SPECIFICALLY DESCRIBED) because the insurer needs to know exactly which vehicles to cover.
NEWLY ACQUIRED AUTOS are automatically covered for 30 DAYS if the insurer covers all owned autos of that type (Symbol 2, 3, or 4).

Covered Auto Designation Symbols

Overview

The Business Auto Policy uses numbered symbols (1-9) to designate which autos are covered. Each coverage in the policy can have different symbols, allowing customization.

Key Concept: The same policy can have Symbol 1 for liability (all autos) but Symbol 7 for physical damage (only scheduled autos).

Symbol-by-Symbol Analysis

Symbol 1: Any Auto

Feature	Details
Meaning	ALL autos, owned and non-owned
Includes	Owned, leased, hired, borrowed, non-owned
Common Use	Liability coverage
Advantage	Blanket protection, no gaps
Disadvantage	Higher premium

Symbol 2: Owned Autos Only

Feature	Details
Meaning	Vehicles owned by named insured
Includes	All owned autos, regardless of type
Automatic Coverage	Newly acquired autos for 30 days
Common Use	Liability and physical damage
Limitation	Does NOT cover hired or non-owned

Symbol 3: Owned Private Passenger Autos Only

Feature	Details
Meaning	Owned cars designed for passengers
Includes	Sedans, SUVs, minivans
Excludes	Trucks, commercial vehicles, specialty
Common Use	When fleet is primarily cars

Symbol 4: Owned Autos Other Than Private Passenger

Feature	Details
Meaning	Owned trucks, vans, specialty vehicles
Includes	Delivery trucks, work vans, equipment
Excludes	Private passenger autos
Common Use	Construction, delivery, service companies

Symbol 5: Owned Autos Subject to No-Fault

Feature	Details
Meaning	Autos requiring PIP in no-fault states
Includes	Private passenger in no-fault jurisdictions
Purpose	Compliance with no-fault laws
States	Michigan, New York, Florida, others

Symbol 6: Owned Autos Subject to Compulsory UM

Feature	Details
Meaning	Autos requiring UM/UIM coverage
Includes	Vehicles in states mandating UM
Purpose	Compliance with UM requirements
Common Use	Used with UM/UIM coverage

Symbol 7: Specifically Described Autos

Feature	Details
Meaning	ONLY listed vehicles
Includes	Vehicles scheduled in declarations
Excludes	Anything not specifically listed
Common Use	Physical damage coverage
Limitation	Must add new vehicles individually

Symbol 8: Hired Autos Only

Feature	Details
Meaning	Rented, leased, or borrowed vehicles
Includes	Short-term rentals, leased vehicles
Excludes	Owned or employee-owned
Common Use	Companies that rent vehicles
Coverage	Liability and/or physical damage

Symbol 9: Non-Owned Autos Only

Feature	Details
Meaning	Autos NOT owned by insured
Includes	Employee personal vehicles
Excludes	Owned and hired autos
Common Use	Liability for employee car use
Key Point	Covers employer, NOT employee

Newly Acquired Autos

Condition	Automatic Coverage Period
All autos of that type covered	30 days automatic
Only described autos covered	No automatic coverage
Reporting requirement	Must report within 30 days

Automatic Coverage Symbols: 2, 3, 4 (when all of that type covered)

Common Symbol Applications

Scenario	Recommended Symbols
Large fleet, diverse vehicles	Liability: 1, Physical Damage: 2
Small fleet, all cars	Liability: 2 or 3, Physical Damage: 7
Uses rentals frequently	Add Symbol 8 for hired
Employees drive personal cars	Add Symbol 9 for non-owned
Mixed fleet with rentals	1 for liability, 7+8 for physical

Property & Casualty Insurance

Introduction

Chapter 1: Insurance Fundamentals

Chapter 2: Property Insurance Concepts

Chapter 3: Dwelling Policies

Chapter 4: Homeowners Policies

Chapter 5: Personal Auto Policy

Chapter 6: Liability Insurance Concepts

Chapter 7: Commercial Property Insurance

Chapter 8: Commercial General Liability

Chapter 9: Commercial Auto Insurance

Chapter 10: Workers Compensation

Chapter 11: Other Commercial Lines

Chapter 12: Insurance Regulations and Ethics