ACORD 127 — Business Auto Section

Edition 2015/12 · PDF format

Application section for commercial auto insurance. Gathers vehicle schedules, driver information, radius of operations, and cargo details for business automobile coverage.

What is ACORD 127?

ACORD 127 (Business Auto Section) is the supplemental application required when an applicant requests commercial auto insurance. It captures the vehicles, drivers, radius of operations, cargo, and prior loss history that underwriters need to price commercial auto coverage.

Pairs with ACORD 125 for new submissions. Most carriers also require ACORD 163 (Commercial Auto Driver Information Schedule) when there are more than a handful of drivers.

Who needs this form

Any business operating vehicles for commercial purposes: delivery, transportation, sales, service calls, or commuting between job sites.

When to use it

Submit with ACORD 125 whenever commercial auto coverage is being quoted, bound, or renewed. Update mid-term when adding vehicles or drivers.

Key Fields on ACORD 127

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

Vehicle schedule: VIN, year, make, model, GVW, value, garaging address, use
Driver schedule: name, DOB, license number, date of hire, MVR violations
Radius of operations (local, intermediate, long-haul)
Type of operations and cargo carried
Coverage requested by vehicle: liability limits, comp/collision, hired/non-owned
Prior auto loss history, particularly DOT recordable accidents

Common Mistakes

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

Omitting drivers

Carriers underwrite based on the driver list. Excluding a driver who later causes a loss can void coverage.

Wrong garaging address

Rates vary significantly by garaging location. Misreporting can produce a rate that doesn't match exposure.

Forgetting hired and non-owned auto coverage

If employees rent vehicles or drive personal cars on company business, hired and non-owned auto (HNOA) coverage is essential. Often missed on small accounts.

Frequently Asked Questions

Do I need ACORD 127 for a single owned vehicle?

Yes. Even one commercial vehicle requires the full ACORD 127 vehicle schedule.

What is hired and non-owned auto coverage?

Hired auto covers vehicles rented by the business. Non-owned auto covers personal vehicles used for business purposes by employees. Both are typically optional endorsements that brokers should always offer.

Related ACORD Forms

ACORD 125