How to Complete the Acord 125

Table of Contents

What is an Acord 125 form?

Acord 125 Logo

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.”

ACORD 125 commercial insurance application showing agency details, producer license numbers, and transaction status options for quoting or binding coverage

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.

ACORD 125 lines of business section displaying coverage options such as commercial general liability, property, crime, business auto, umbrella, and available policy attachments.

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.

Acord 125 Policy information section showing proposed effective and expiration dates, billing and payment plan details, and annual audit indicators.

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.  

Contact information section capturing named insured’s business contact details, phone numbers, and email addresses for commercial insurance applications.

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.

Acord 125 Premises information section capturing building location, occupant/owner status, annual revenues, square footage, and leased area details for commercial insurance.

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.

ACORD 125 nature of business section capturing the business type (apartments, contractor, manufacturing, etc.), description of operations, and date the business started.

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.

Additional interest section listing various interest types, including mortgagees and lienholders, with name, address, and reference details for commercial insurance.

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.

General information section with 15 yes/no questions about subsidiaries, safety programs, prior coverage, claims, and any exposures or legal issues.

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

Prior carrier information section detailing policy years, carrier names, policy numbers, coverage categories, premium amounts, and effective/expiration dates.

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.

Loss history section capturing details on claims, date of occurrence, amounts paid, subrogation status, and open or closed claims for commercial insurance.

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.

Justin Goodman
Justin Goodman

With two decades of experience in the insurance industry, Justin is the co-founder and CEO of Total CSR and the co-founder and Managing Director of Project 55. By the age of 29, Risk and Insurance Magazine recognized him as one of the nation’s top five construction insurance experts. He has also been named to Insurance Business Magazine’s Hot 100 and was most recently honored as the 2024 Insurance Journal Agent of the Year.

Through his leadership at Total CSR, Justin has trained over 50,000 CSRs, account managers, and producers, driven by his passion for developing the next generation of insurance professionals. When not spending time with his family, he dedicates his free time to speaking at industry events and advising agency owners across the country.

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