Commercial Automobile and Businessowners Policy
Business auto coverage
The Business Auto Coverage Form insures liability and physical damage for autos used in business. The critical step is choosing covered auto designation symbols: 1 = any auto, 2 = owned autos only, 3 = owned private passenger autos, 4 = owned autos other than private passenger, 5 = owned autos subject to no-fault, 7 = specifically described autos, 8 = hired autos, 9 = non-owned autos. Selecting the wrong symbol is the classic exam trap - symbol 1 is the broadest and rarely written.
Coverage extends to liability, physical damage, and related endorsements (hired and non-owned, drive-other-car, garagekeepers, motor carrier filings). Note that employees using personal autos on the employer's business require non-owned auto coverage; employer-provided autos require hired or owned coverage.
Businessowners policy (BOP)
The BOP packages property and liability for eligible small-to-medium businesses: offices, retail, restaurants, apartments, and similar risks, generally excluding auto dealers, banks, and large manufacturing. Property includes building, business personal property, business income, and often blanket or replacement cost options. Liability includes premises/operations, products-completed operations, personal and advertising injury, medical expense, and fire legal - much like a CGL, but with lower limits and simpler structure. Coinsurance is typically absent; a business income limit and a special inflation guard feature matter.
Traps
Eligibility (some businesses require a commercial package instead), the absence of coinsurance in the BOP, and the auto/hired/non-owned distinction.
Rule of thumb
Employee driving their own car for work = non-owned auto; employee driving a rental for work = hired auto; company-owned truck = symbol 2 or 7.