Underwriting Guide

Commercial Auto Coverage Symbols — What They Mean

Commercial auto policies use numeric coverage symbols to define exactly which vehicles are covered and under what circumstances. Selecting the wrong symbols — or not understanding what each symbol covers — is a common mistake that creates coverage gaps for clients.

Symbol 1 — Any Auto

Symbol 1 provides the broadest coverage — it covers any vehicle the insured owns, leases, hires, or borrows. This is the most comprehensive option and is typically used for liability coverage on accounts where the broadest protection is needed. Symbol 1 automatically includes hired and non-owned auto liability.

Symbol 2 — Owned Autos Only

Symbol 2 covers only vehicles owned by the insured. Hired or borrowed vehicles are not covered. Non-owned autos (employee personal vehicles used for business) are not covered. Symbol 2 is common for physical damage coverage (comprehensive and collision) since the insured only has an insurable interest in vehicles they own.

Symbol 8 — Hired Autos Only

Symbol 8 covers only vehicles the insured hires, rents, or leases — but not owned or non-owned vehicles. It is typically paired with Symbol 9 (non-owned autos) for accounts that need hired and non-owned auto liability but don't own any vehicles.

Symbol 9 — Non-Owned Autos Only

Symbol 9 covers vehicles not owned by the insured that are used for business purposes — typically employees driving their personal vehicles for work. It provides liability coverage for the business entity itself (not the employee's personal policy). Symbol 9 is one of the most commonly overlooked coverages on small commercial accounts.

Why symbol selection matters

An account that uses Symbol 2 for all coverages has no hired auto or non-owned auto coverage. If an employee has an accident while running a business errand in their personal car, the business has no coverage for the vicarious liability claim. Symbol selection must match the client's actual vehicle use situation.

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Commercial auto insurance guideACORD 127 — business auto section guideCommercial auto insurance — full agent guideCommercial umbrella insurance