ACORD 125 — Commercial Insurance Application

Edition 2025/03 · PDF format

Standard application for commercial insurance policies. Collects essential business information including operations, ownership, prior claims history, and desired coverage. The starting point for most commercial insurance submissions.

What is ACORD 125?

ACORD 125 (Commercial Insurance Application) is the foundation document for every commercial insurance submission in the United States. It captures the basic information every carrier needs to begin underwriting: who the business is, what they do, where they operate, who owns them, and what their loss history looks like.

On its own, the 125 isn't enough to underwrite most commercial coverage. Carriers expect the 125 to be paired with relevant section forms: ACORD 126 for general liability, 127 for business auto, 130 for workers compensation, 140 for property, and so on.

Modern AMS platforms generate the 125 automatically from client data, but the underlying fields and requirements remain the same. Knowing what's on the 125 is foundational knowledge for any commercial broker or underwriter.

Who needs this form

Every commercial insurance prospect or insured submitting an application or renewal to a carrier. Producers use it as the entry point to a complete submission package.

When to use it

Use ACORD 125 at every new commercial submission and at renewal when material information has changed. Many carriers also require a fresh ACORD 125 every 3 years even on stable accounts.

Key Fields on ACORD 125

The information the form captures, in the order it typically appears:

Applicant name (legal entity, FEIN, business type)
Mailing and primary location addresses
Inspection contact, accounting contact
Years in business and prior carrier
Nature of business / operations description
SIC and NAICS codes
Number of locations, employees, payroll
Annual gross revenue / sales
Lines of coverage requested with proposed effective date
5-year loss history with details on each loss
Prior cancellations, non-renewals, or denials
Insured signature with fraud warning acknowledgment

Common Mistakes

Recurring errors that delay processing or expose brokers to E&O claims:

Submitting ACORD 125 alone

Carriers need the relevant section forms (126, 127, 130, 140, etc.) attached. Submitting the 125 by itself usually triggers a request for missing forms.

Vague operations description

'General contractor' isn't enough. Describe the specific work: 'residential remodeling, no roofing, no work above 3 stories.' Specificity drives accurate pricing.

Incomplete loss history

Carriers require 5 years of loss history with carrier name, dates, amounts, and status. Omitting or rounding losses destroys broker credibility and slows underwriting.

Wrong SIC/NAICS codes

Class codes drive rates. Submitting a code that doesn't match operations can lead to a quote based on a different exposure, invalidating coverage at claim time.

Frequently Asked Questions

What other forms must accompany ACORD 125?

Depends on the lines of coverage requested. Add ACORD 126 for GL, ACORD 127 for business auto, ACORD 130 for workers comp, ACORD 140 for property, ACORD 131 for umbrella. ACORD 160 (BOP) replaces several of these for small business package coverage.

How much loss history does ACORD 125 require?

Five years is standard. Some carriers in hard markets ask for 7–10 years. Always provide the loss runs from the prior carrier(s) to back up what's reported on the application.

Does the insured really need to sign?

Yes. The insured's signature acknowledges that the information is true and complete and that misrepresentation may void coverage. E-signatures via DocuSign or AMS-integrated platforms are widely accepted.

Related ACORD Forms

ACORD 126