Glossary

Business auto policy (BAP)

The commercial policy covering liability and physical damage for vehicles a business owns, hires or borrows, with covered autos chosen by numbered symbols.

Also called: BAP, business auto coverage form, commercial auto policy, CA 00 01

A business auto policy covers a business for auto liability and, if purchased, physical damage on vehicles used in its operations. The ISO Business Auto Coverage Form is CA 00 01. Instead of listing every vehicle, it picks "covered autos" by symbol in the declarations: 1 is any auto, 2 owned autos only, 7 specifically described autos, 8 hired autos only and 9 non-owned autos only. Each coverage carries its own symbol, so liability might use 1 or a combination of 2, 8 and 9 while physical damage uses 7.

Liability responds when the insured is legally responsible for bodily injury or property damage from the use of a covered auto. The declarations also list the optional coverages bought, such as medical payments, uninsured motorists and comprehensive and collision. It does not cover employee injuries, which go to workers' compensation.

Two pitfalls recur. A symbol 7 schedule does not automatically follow a vehicle you buy mid-term, so report additions promptly. And employees driving their own cars on errands create exposure the owned-auto symbols miss, which is why hired and non-owned auto coverage exists. Trucking operations generally need the motor carrier form (CA 00 20) and an MCS-90 filing. The guide on business auto coverage symbols walks through choosing them.

Last reviewed October 10, 2026

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Related terms

Hired and non-owned auto Liability coverage for accidents in vehicles your business rents or borrows, or that employees and others use on your behalf but you do not own. Fleet A group of business vehicles insured together under one commercial auto program, often five or more, and rated more on the group's losses than on any one unit. MCS-90 A federal endorsement on a trucker's liability policy that guarantees payment of judgments to the public up to the federal minimum, even for excluded losses. Motor truck cargo Coverage for a trucker's legal liability when a customer's freight is lost, stolen or damaged while in the carrier's care during transport. Bodily injury Physical injury, sickness or disease suffered by a person, including death resulting from it; the harm that triggers liability coverage for injuries.

Related guides

Business auto coverage symbols explained: what each number covers Symbols 1 through 9 and 19 on a business auto declarations page decide which vehicles each coverage applies to. Here is what each means and where gaps appear. Commercial auto insurance: what it covers and what it leaves out How a business auto policy works: liability, physical damage, who counts as an insured, which vehicles are covered, common gaps and what drives the premium. Commercial vs personal auto: when you need a business auto policy A personal auto policy stops responding when vehicles are titled to a company, haul goods for pay or carry employees. Learn the tests insurers use and the gaps. Fleet insurance: how fleets are defined, rated and insured Fleet insurance is commercial auto for businesses with several vehicles. How fleets are classified and rated, and how to structure limits and deductibles. Building a fleet safety program that insurers notice The parts of a fleet safety program, which FMCSA rules apply to which vehicles, and what underwriters look for in driver standards, maintenance and crashes. Garage liability and garagekeepers coverage How garage liability and garagekeepers coverage protect repair shops, dealers, valets and parking operators, and where the CGL and auto policy fall short.

Related insurers

Allstate The big personal auto and home insurer has pulled back from Allstate-brand commercial policies; it now sells commercial auto through National General. Kemper Chicago nonstandard auto insurer whose Kemper Auto Commercial unit insures vehicles of contractors and small businesses in eight states via independent agents. Mercury Insurance California auto and home insurer founded in 1961. It writes commercial auto in four states and California BOPs, through independent agents. Progressive Commercial The largest U.S. commercial auto insurer, for work vehicles, trucks and tow trucks, sold by agents and online. Most other business lines come from partners.

Related industries

Courier and delivery insurance What courier and delivery businesses need: commercial auto, hired and non-owned auto, cargo, GL and comp, and how gig-platform coverage differs from your own. Food truck insurance What food trucks and carts need: commercial auto, GL with product liability, truck and equipment cover, comp, and the limits cities and events demand.

Related en español

Seguro de auto comercial: qué cubre y qué deja fuera Cómo funciona la póliza de auto comercial: responsabilidad civil, daños físicos, quién es asegurado, qué vehículos cubre, huecos comunes y qué fija la prima.