What is an Acord 125 form?


If you’re starting a career in insurance, it’s important to get comfortable with the applications used in an Agency Management System (AMS). In this article, we’ll explore the ACORD forms and specifically the ACORD 125 form.
The ACORD 125 form, also referred to as the ACORD commercial insurance application or business insurance application form, is used to capture general client information for ACORD business insurance. This 125 insurance form includes details like the business location, contact information, a business description, prior insurance, and loss history. If you’re wondering whether you need to learn how to fill out an ACORD 125, the answer is definitely yes. This ACORD application is used for most commercial insurance policies, making it essential to know how to complete it correctly.
Below are a few key sections of the ACORD 125 that you’ll want to pay attention to:
Applicant Information Section - ACORD 125
Page 1 starts with the company’s underwriting or rating basics. You’ll see fields for the agency’s details, including the National Producer Number and State Producer License No. Your AMS usually pre-fills this information, but if you’re not using an AMS, be sure to enter it manually. On the right side, you’ll also see a Status of Transaction box. If you’re sending this application to carriers along with others, you’ll mark “quote.”


Line of Business Section
Next, check the Lines of Business section. Review the policy options and select all that apply, such as Commercial General Liability, Property, Crime, Business Auto, and Umbrella coverage. The general liability ACORD form 125 is especially significant for businesses seeking liability protection. Meanwhile, Property and Crime are often core parts of a robust commercial insurance policy.


Policy Information Section
Moving on to the Policy Information section, you’ll indicate the Proposed Effective Date and Proposed Expiration Date, billing plan details (who’s billed for the premium), and the payment plan chosen by the client. You’ll also see a box labeled “Audit,” which is usually marked “A” for annual audits.


Applicant Information Section
The Applicant Information Section follows, where you’ll record the Named Insured, Mailing Address, FEIN (Federal Employer Identification Number) or Social Security Number (if it’s an individual), and the main Business Phone number. The FEIN is vital for identifying businesses, so make sure it’s entered correctly. You’ll also check a box indicating the business structure. If there are additional Named Insureds, include those here as well.
Page 2 on the ACORD 125 digs deeper into the insured’s operations. At the top, fill in the Contact Information: contact type, name, and phone number. include the contact type, contact name and phone number.


Premises Information
Next, in the Premises Information section, enter the Location and Building Number (start with #1), address details, and note whether the location is inside or outside city limits. Also indicate if the insured is an owner or tenant, and the number of employees. You’ll then list revenue and square footage specifics, including annual revenues, occupied area, open-to-public area, and total building area. Confirm whether any part of the premises is leased to others. This data helps determine the policy premium, especially for Property and Crime coverage.


Nature of Business - ACORD 125
After that, complete the Nature of Business details. First, check the box that fits the insured’s business category. Then, in the Description of Operations, describe the company’s activities. This information is crucial for underwriters to accurately assess risk. You may also need to provide the NAICS or SIC Code if required.


Additional Interest
As you continue, you’ll see the Additional Interest area. Here, list any parties with an interest in the insured’s business, along with their name and address.


General Information and Prior Coverage
Page 3 on ACORD 125 mostly gathers General Information. There are 15 questions to answer with “yes” or “no” in the right-hand column. Some questions might require extra details if you answer “yes,” so be sure to include any necessary explanations.


Prior Carriers and Loss History
Toward the bottom of the ACORD 125, you’ll find Prior Carrier Information. This is where you’ll enter previous coverage details, including the policy year, carrier name, policy number, premium amounts for Property, Crime, and other coverages, and the policy’s effective and expiration dates.
Loss History and Signatures


Page 4 continues the Prior Carrier Information, offering space for additional carrier history. As you go down the page, you’ll arrive at the Loss History section. Check “no” if there have been no claims in previous policy periods, or fill in the requested claim details if there have been any.


Finally, you’ll see signature fields for the Producer’s Name and Applicant’s Signature. These aren’t necessary during quoting but must be obtained once the policy is bound. The Signature area validates the accuracy of the information provided. In particular, the Named Insured’s signature confirms that all information is correct to the best of their knowledge.
Other Important Notes for ACORD 125:
An ACORD 125 (as well as the ACORD 126 and ACORD 140) is typically available in your AMS. You can fill it out and then send an ACORD 125 PDF to the client for review and signing. Many details will auto-populate in your AMS, saving time when completing the ACORD 125 form.
While this article centers on the ACORD 125, you may also need the ACORD 126 PDF or a combination of ACORD 125 and 126 or even ACORD 125, 126, and 140, depending on the commercial insurance application you’re processing. Getting familiar with these forms and how they’re used will make you more efficient in handling ACORD commercial insurance applications and business insurance application forms.
When you work with these forms, pay special attention to the Named Insured, Mailing Address, Description of Operations, and coverage details for Property and Crime. Each section is essential to representing the business accurately. By mastering the ACORD 125, 126, and 140 forms, you’ll be prepared to handle a wide variety of commercial insurance applications quickly and accurately.