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So what is an ACORD 125 Commercial Insurance Application? The ACORD 125 form is a standardized insurance application that asks specific questions about an insured’s business so the insurance company has the information it needs to properly rate the policy.

ACORD 125 Commercial Insurance Application

Businesses are required to have specific types of business insurance coverage.

Various aspects of their operations are covered by different types of insurance.

Commercial policies are tailored to cover most types of claims, including their effects on people and property.

A commercial insurance application provides general information for applicant, premise, a business description, prior insurance information, and loss history.

The ACORD 125 Commercial Insurance Application, asks many detailed questions to ensure that business owners get the right policies that are appropriate for their business.


The best way to get the right amount of coverage is to be clear on your form ACORD 125 Commercial Insurance Application. The application has many questions geared towards the intricacies of your business operation. The insurer needs to know about your property to decide on the value. You may be required to have an inspection of the premises. If you are leasing the property, a portion of the property coverage is your responsibility. Property coverage also covers the contents of the building, so be sure to list all of your equipment on the application. You may be asked for pictures or receipts. All business purchases should be documented.


Liability coverage is meant to provide protection for third party incident so bodily injury and property damage. Many businesses have public visitors that frequent the workplace. The amount of traffic that goes through each office depends on the business. A restaurant or store is set up to attract customers, therefore they may need more liability coverage. A business call center may rarely accommodate outsiders.

It is best to be specific on your ACORD 125 Commercial Insurance Application about the type of business you are running. Your broker must decide how much liability coverage is necessary, according to your answers. There may also be questions about safety precautions taken to prevent injury on your property. Proactive measure towards the wellbeing of visitors can help to keep your rates lower.

Workers compensation is required by most states and extends your policy to cover the employees while they are at working. This can be extremely helpful for businesses that use dangerous equipment. The application is going to have questions about the work environment including machinery used, maintenance of machinery, and safety procedures. You can increase chances for approval of a policy by keeping your equipment up-to-date and repaired properly. If you offer safety training courses for you employees, be sure to mention it on this part of the application, as well.

Special Coverage

Many businesses fall outside of the standard categories. Most businesses, however, need something extra. Your ACORD 125 Commercial Insurance Application may ask a series of questions to find out if you are in need of specialty coverage. There are many varieties, so be sure to research your options.

Crime insurance can help to cover losses from robberies. This insurance may be necessary if you have large amounts of inventory or reside in a high crime area. Glass coverage is specifically for broken glass, mainly store windows. This coverage may not be necessary for stores inside a mall, but might be useful for free-standing shops. Ordinance of law covers updated rebuilding in case of complete destruction. Think about unique qualities that may need to be covered.

Correct Information

It is important to be truthful on this form. It says, “Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties (not to exceed five thousand dollars and the stated value of the claim for each such violation)*. *Applies in NY Only.

Being dishonest on this form could cause a claim to be denied down the road, or worse being accused of insurance fraud.

More On ACORD Forms

You can find more applications on the ACORD forms list.

ACORD 125 Commercial Insurance Application – The Bottom Line

We hope this article on ACORD 125 Commercial Insurance Application has been informative. Your ACORD 125 application should be filled out thoroughly for accurate information. Think clearly about your answers before answering. The right policy can bring a great sense of security to your business.

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