Commercial Applications
Edition 2016/03 · PDF format
Application section for commercial property insurance. Captures building construction details, occupancy, protection class, property values, and special coverage needs.
ACORD 140 (Property Section) is the supplemental application required for commercial property coverage. It captures the COPE data (Construction, Occupancy, Protection, Exposure) that property underwriters use to evaluate and price each location.
Each location on the schedule gets its own row of details. Construction and protection class drive the rate, while occupancy determines acceptable coverages and any special exclusions.
Any business owning or leasing commercial property (buildings, business personal property, equipment, or stock) that needs property insurance.
Submit with ACORD 125 whenever commercial property coverage is being quoted. Update the schedule whenever locations are added, sold, or improved.
The information the form captures, in the order it typically appears:
Recurring errors that delay processing or expose brokers to E&O claims:
Construction class drives rate. A frame building rated as masonry can produce a quote 50%+ below actual exposure, leading to coverage issues at claim time.
ISO updates Public Protection Classes periodically. Use current PPC from the carrier's rating system, not historical data.
Property coverage is based on replacement cost (or ACV if elected). Market value reflects land and supply/demand and is rarely the correct insurable value.
Construction, Occupancy, Protection, Exposure. These four categories make up the standard data set property underwriters use to evaluate and price commercial property risks.
Basic form: named perils only (fire, lightning, explosion, windstorm, etc.). Broad form: named perils plus collapse, water damage, and a few others. Special form (the most common): all-risk coverage subject to listed exclusions. Special is broader and slightly more expensive.
ACORD 28
Required by banks and commercial lenders to verify that a property has appropriate commercial insurance coverage. Includes policy information, effective dates, coverage limits, and loss payee details.
ACORD 125
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.
ACORD 1
Standard form for reporting property damage claims to insurance carriers. Captures loss date, cause, description of damage, estimated amounts, and police/fire department information.