Bio Hazard typically is a designation when there is blood, or other body matter in the vehicle.
Even small amounts of blood on an airbag, or upholstery from a bloody nose etc...qualifies the car for bio-hazard. this way no employee of the insurance company or auction has to enter vehicle, only bio-hazard crew.
This wreck was severe....
I worked at Manheim Auctions for years, and saw many accident cars get quarantined.