So what is the ACORD 126 Commercial General Liability Section? The ACORD 126 form is a standardized insurance application that asks specific questions about an insured's business so the insurance company can rate the CGL policy correctly.
ACORD 126 Commercial General Liability Section
A commercial general liability application provides specific information about the business operations. This application should have information containing desired coverage limits, schedule of hazards, completed operations, and any additional insureds. The key is to be sure to collect enough information so that your underwriter can accurately assess the risk, and provide you with the most competitive quote.
The ACORD 126 Commercial General Liability Section is a form of insurance designed to protect owners and operators of businesses from a wide variety of liability exposures. These exposures include liability for accidents resulting from the insured's operations or premises, products sold or operations completed by the insured, and contractual liability. The ACORD 126 was designed to be used in conjunction with the Commercial Insurance Application - Applicant Information Section (ACORD 125).
General liability is a necessity for all businesses, and filling out this application properly can help protect your business from third party claims of bodily injury and property damage.
Clients who visit your place of business, or who you got out to work for, should be covered by your general liability policy. A lack of coverage in this area may result in having to pay hug sums of out pocket if someone is hurt and your business is found liable in a lawsuit.
Information to determine how much coverage you need is entered in the main section of your ACORD 126 Commercial General Liability Section. Commercial general liability coverage one of the most basic parts of your policy. Specific questions help the broker figure out how much coverage you may need. An office building may need less coverage than a retail store. Retail stores often host hundreds of people in a day. Every single one of the visitors is covered under the liability section.
Your general liability coverage is responsible for the car and rehab of clients after an injury or illness that resulted from your operations. Many items are covered with this policy. An injured customer may bring a suit against you, or settle the claim. Legal costs are covered if the client sues. Medical coverage allows the individual to receive proper treatment for any ailments in connection to the incident. Within reason, loss of income from days missed at work may also be covered. Customers can feel comfortable knowing that they are protected while doing business with your company.
You will need to provide information about your business and industry. You need to provide the correct general liability class codes for the types of work you do. This is very important so the insurer can properly rate your policy.
A Note On Risk Management
Prevention measures often lead to discounts on insurance rates. You can prevent injuries on your property by training employees to keep the floors clean and clear. A spill should be clearly marked with a cone, and cleaned immediately. If a customer slips and falls, refer to the liability section of your policy to see what is covered.
Proper employee training, organization, and fire alarms are all a part of disaster prevention. Be sure to detail all of your safety precautions for your insurance agent when applying for liability. Proper safety measures and inspections limit the risk to clients and earn trust from your insurance company. Proper preparation can also help in court if a liability case is brought against you. The insurance company wants to ensure that you are working with them to protect the public.
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 download a blank copy of the form here: ACORD 126 Commercial General Liability Section.
You can find more applications on the ACORD forms list.
ACORD 126 Commercial General Liability Section - The Bottom Line
We hope this article on ACORD 126 Commercial General Liability Section has been informative. The commercial general liability section of your ACORD 126 insurance paperwork gives pertinent information about basic CGL coverage for your business. It is important to be thorough while filling out this section of the application. Insurers need a full understanding of your client base, safety measures, and daily activities. A customized policy can help you stay properly covered and avoid complications.
Find other ACORD forms here - ACORD 20 Certificate of Aviation Liability Insurance, ACORD 21 Certificate of Aircraft Insurance, ACORD 22 Intermodal Interchange Certificate of Insurance, ACORD 23 Vehicle or Equipment Certificate of Insurance, ACORD 24 Certificate of Property Insurance, ACORD 25 Certificate of Liability Insurance, ACORD 27 Evidence of Personal Property Insurance, ACORD 28 Evidence of Commercial Property Insurance, ACORD 125 Commercial Insurance Application, ACORD 126 Commercial General Liability Section, ACORD 130 Workers Compensation Application, ACORD 140 Property Section