Introduction to Business Auto Policy (BAP) Coverage Symbols

For candidates preparing for the Florida 2-20 General Lines Exam, understanding the Business Auto Policy (BAP) is a critical milestone. Unlike personal auto policies where coverage is often tied to the vehicle listed on the declarations page, the BAP uses a system of numeric symbols to define which 'autos' are covered for specific types of losses.

These symbols are placed next to each coverage (e.g., Liability, Comprehensive, Collision) on the declarations page. Because the BAP is designed for businesses ranging from small delivery services to massive trucking fleets, these symbols provide the flexibility needed to tailor coverage. This guide is a key component of our complete FL 2-20 exam guide.

Broad Coverage: Symbols 1 through 4

The first four symbols generally deal with 'owned' vehicles and the broadest possible coverage scenarios. On the Florida 2-20 exam, you will frequently be tested on which symbol offers the most protection for an insured.

  • Symbol 1: Any Auto. This is the broadest symbol available. It covers any auto, whether owned, hired, borrowed, or non-owned. It is typically only available for Liability coverage. If a business has Symbol 1, they do not need to worry about symbols 2, 8, or 9 for liability.
  • Symbol 2: Owned Autos Only. This covers all autos owned by the named insured. It also automatically provides coverage for any newly acquired autos of the same type during the policy period.
  • Symbol 3: Owned Private Passenger Autos Only. This limits coverage specifically to 'cars' (sedans, SUVs, etc.) owned by the business, excluding trucks or commercial vehicles.
  • Symbol 4: Owned Autos Other Than Private Passenger Autos. This is the inverse of Symbol 3, covering the business's trucks, tractors, and trailers, but excluding private passenger vehicles.

Summary Comparison of BAP Symbols 1-9

FeatureSymbolDescriptionCommon Use Case
Symbol 1Any AutoBroadest Liability protection
Symbol 2Owned Autos OnlyFleets where only owned vehicles are covered
Symbol 7Specifically Described AutosNarrow coverage; only listed vehicles
Symbol 8Hired Autos OnlyRental cars or leased vehicles
Symbol 9Non-Owned Autos OnlyEmployees using personal cars for work

State-Specific and Narrow Coverage: Symbols 5 through 9

Symbols 5 and 6 are specifically designed to address statutory requirements, which is a common focus for state-level licensing exams.

  • Symbol 5: Owned Autos Subject to No-Fault. This symbol is used for vehicles required to have Personal Injury Protection (PIP) in states like Florida.
  • Symbol 6: Owned Autos Subject to Compulsory Uninsured Motorists Law. Used in states where UM coverage is mandatory and cannot be rejected.
  • Symbol 7: Specifically Described Autos. This is the most restrictive symbol for owned autos. Coverage applies only to the vehicles actually listed (scheduled) on the policy. For the Florida exam, remember that Symbol 7 only covers newly acquired autos if the insurer already covers all autos owned by the insured, or if the new auto replaces a previously covered one, and the insurer is notified within 30 days.
  • Symbol 8: Hired Autos Only. Covers autos the insured leases, hires, rents, or borrows. It does not include autos borrowed from employees.
  • Symbol 9: Non-Owned Autos Only. Covers autos the insured does not own, lease, or hire, but are used in the business. This primarily covers employees using their own personal vehicles for company business.
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Exam Tip: Symbol 9 vs. Symbol 8

A common trick on practice FL 2-20 questions involves distinguishing between these two. Symbol 8 is for vehicles the company rents (like from Hertz). Symbol 9 is for vehicles employees own but use for work errands. If an employee crashes their own car while depositing company checks, the company's BAP needs Symbol 9 to protect the business entity.

Physical Damage Coverage and Symbol 19

While Symbols 1-9 are the standard, the BAP also includes Symbol 19 (Mobile Equipment Subject to Motor Vehicle Insurance Laws). This is used for land vehicles that would normally be considered 'mobile equipment' (like a forklift) but are required to be registered to drive on public roads.

When it comes to Physical Damage (Comprehensive and Collision), you will rarely see Symbol 1 used because insurers want to know exactly what vehicles they are insuring for damage to the vehicle itself. Most businesses will use Symbol 2 or Symbol 7 for Physical Damage coverage.

Frequently Asked Questions

Symbol 1 (Any Auto) is the broadest symbol. It encompasses owned, non-owned, and hired autos, providing the most comprehensive liability protection for a business.
Only under strict conditions. Symbol 7 (Specifically Described Autos) covers a newly acquired auto only if the insurer already insures all autos owned by the business, or if the new vehicle replaces a currently scheduled one, provided the insured notifies the company within 30 days.
The business would need Symbol 9 (Non-Owned Autos Only) to protect the employer's liability when employees use their personal vehicles for business purposes.
Insurers require a specific schedule of values to provide Physical Damage (Collision/Comprehensive) coverage. Symbol 1 is too broad and unpredictable for rating the physical value of an unknown fleet, so symbols like 2, 7, or 8 are preferred.