ACORD 125 form. How to Download and complete the application
The ACORD 125 is the Commercial Insurance Application — the common front section that collects a business's details, operations, and the lines of coverage it is requesting, so an insurer can underwrite commercial coverage. It is an application, not proof of insurance (that is the ACORD 25), and it is paired with line-specific supplements: ACORD 126 (general liability), 127 (auto), 130 (workers' compensation), 131 (umbrella/excess), and 140 (property).
What is the ACORD 125 form?
For the wider set of forms, see what are ACORD insurance forms.
Do you need an ACORD 125?
| Situation | Need an ACORD 125? |
|---|---|
| Applying for commercial insurance | Yes |
| Applying for business liability coverage | Yes |
| Renewing through a new insurer | Usually |
| Requesting proof of insurance | No — that's the ACORD 25 |
| Providing a COI to a client | No |
What documents do you need before completing the ACORD 125?
Gather these before you start — having them ready prevents the most common submission delays:
- Business registration details
- Revenue figures
- Payroll information
- Loss runs / claims history (carriers usually want at least 5 years)
- Existing insurance policies
- Property details
- Vehicle schedules
Why underwriters use the ACORD 125
The application is the underwriter's primary tool. They use it to:
- Assess risk — understand the business and its exposures.
- Price premiums — base rates on operations, revenue, and payroll.
- Identify exposures — spot risks that need specific coverage.
- Determine coverage terms — decide what to offer and on what conditions.
- Request supplemental forms — know which line-specific forms to expect.
Because it is standardised, the same application is read consistently by every insurer, which speeds the whole process.
Supplemental forms that go with the ACORD 125
The ACORD 125 is the common section. The actual coverage detail and limits are captured on line-specific supplements, which you attach for each coverage you request:
| Form | Line of coverage |
|---|---|
| ACORD 126 | Commercial general liability |
| ACORD 127 | Commercial (business) auto |
| ACORD 130 | Workers' compensation |
| ACORD 131 | Umbrella / excess liability |
| ACORD 140 | Commercial property |
How to fill out the ACORD 125, step by step
The business name, mailing address, and contact details — matching legal documents.
Legal structure (LLC, corporation, partnership, sole proprietor), year established, and nature of operations.
Prior carriers, policy numbers, coverage periods, and past claims or losses. Most carriers require at least 5 years of loss runs and will not proceed without them.
Products or services, locations, and associated risks, so the underwriter understands the exposure.
A formal section where you check which coverages you need — general liability, auto, property, workers' compensation, umbrella. This tells the underwriter which supplemental forms to expect.
Indicate the coverages you want and attach the relevant supplement. Note that the ACORD 125 only signals which lines you are requesting — the actual limits and terms are captured on the supplements (126 for GL, 140 for property, and so on), not on the 125 itself.
Any parties (landlords, vendors) to be added — each created by an endorsement on the policy.
Previous carriers, dates, and reasons for any cancellation or non-renewal.
If applicable, employee counts, class codes, and payroll (detailed on the ACORD 130).
Both the applicant and the producer (agent or broker) sign — the form has a dedicated signature block for each.
Other details that affect your application
Underwriters also weigh employee roles and payroll, annual revenue, risk-management practices (safety training, security systems), subcontractor coverage, business interruption needs, available discounts, and endorsements such as cyber liability, equipment breakdown, or inland marine. Accurate figures here keep your premium and coverage correct.
Who uses the ACORD 125?
Almost any small business applying for commercial coverage, for example:
- Massage therapists — general and professional liability.
- Café owners — property, general liability, and business interruption.
- Freelance designers — professional liability (E&O) and general liability.
- Retail store owners — property, general liability, and product liability.
- IT consultants — professional, cyber, and general liability.
- Landscapers — general liability, commercial auto, and workers' compensation.
- Food truck owners — commercial auto, general liability, and product liability.
Example: a restaurant applying for insurance
A restaurant owner applies for a commercial package. They complete the ACORD 125 plus the ACORD 126 (general liability) and ACORD 140 (property), and provide their revenue, payroll, property value, and prior claims. The insurer reviews the submission and issues a quote.
What the ACORD 125 does not do
- Does not provide insurance — it requests coverage; it does not grant it.
- Does not guarantee approval — the insurer still underwrites the risk.
- Does not prove coverage — proof comes from a certificate (ACORD 25) or evidence form (ACORD 27).
- Does not replace the supplemental forms — limits and terms live on the 126, 140, and others.
- Does not create a policy — the policy is issued only after underwriting.
Common ACORD 125 mistakes
- Understating revenue.
- Incorrect payroll figures.
- Missing prior claims or loss runs.
- Incomplete operations description.
- Forgetting subcontractor information.
- Listing outdated carrier details.
Download the ACORD 125 form
You can download a sample ACORD 125 (Commercial Insurance Application) PDF to see the layout. Your agent or broker submits the live application to the insurer.
Frequently asked questions
A complete ACORD 125 means a smoother quote
Fill in every section accurately — operations, history, payroll, and the lines you need — and attach the right supplements so the underwriter can assess your business correctly and quote without delay.
Need more on certificates?
See the full overview of ACORD forms, the standard liability certificate, and the general certificate of insurance guide.
All ACORD forms ACORD 25 guide Certificate of insurance guide
ACORD cancellation
Homeowner right to repair for insurance. Questions? Answers.
What is the homeowner’s right to repair?
The homeowner's right to repair refers to the policyholder's option to choose their own contractors to perform repair work on their property following an insurance claim, rather than using contractors selected by the insurance company.
Why would I choose to exercise my right to repair instead of using the insurance company’s contractors?
Exercising your right to repair allows you to have more control over the quality of materials and workmanship, ensures that trusted and reputable contractors handle the repairs, and can often lead to a faster resolution as you are directly involved in managing the project.
What should be included in the request letter to the insurance company?
The request letter should include:
- Your personal and contact information.
- Details of the incident (e.g., date of the fire or flood).
- Your policy number.
- A formal request to exercise your right to repair.
- Information about the chosen contractors, including their credentials and estimates.
- An invitation for the claims adjuster to inspect the property.
How do I choose the right contractors for the repairs?
When selecting contractors, consider their experience with the specific type of damage (e.g., fire or flood), their reputation, licensing and insurance status, references from previous clients, and their ability to provide a detailed estimate and scope of work.
What if the insurance company denies my request to use my own contractors?
If the insurance company denies your request, you should ask for a detailed explanation. It may be helpful to review your policy to understand your rights and, if necessary, seek assistance from a public adjuster or legal counsel to advocate on your behalf.
Can the insurance company impose any conditions on my right to repair?
Yes, the insurance company may impose conditions such as requiring detailed estimates, using licensed and insured contractors, and ensuring that the repairs meet certain standards. It’s important to comply with these conditions to ensure your claim is processed smoothly.
What should I do if the repairs exceed the initial estimates?
Inform your insurance company as soon as you become aware of additional costs. Provide them with updated estimates and an explanation of why the additional expenses are necessary. Most policies will have a procedure for handling cost overruns, but it’s important to get prior approval from the insurer.
Can I be reimbursed for temporary living expenses while repairs are being made?
Yes, if your home is uninhabitable due to the damage, your policy may include additional living expenses (ALE) coverage, which can reimburse you for temporary housing, food, and other necessary expenses while your home is being repaired. Check your policy details and discuss this with your insurance adjuster.
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