ACORD 125: Complete Guide to the Commercial Insurance Application Form (2025 Update)

ACORD 125 is one of the most recognized forms in commercial insurance. Agents, brokers, and underwriters utilize it daily to submit applications, renew policies, or remarket accounts. It’s the starting point for most commercial lines and the foundation of every complete submission.

This guide explains what ACORD 125 is, how to complete it correctly, the changes introduced in the latest version, and how automation is streamlining the process for insurance teams, making it faster and easier.

What is ACORD 125?

ACORD 125 is the Commercial Insurance Application used to start most commercial insurance submissions. It gathers the applicant’s details, business name, contact information, ownership type, locations, and operations. It also requests prior carrier data and loss history.

Think of it as the cover sheet of the entire submission packet. Every carrier, MGA, or wholesaler uses it to get a consistent overview of the risk before diving into line-specific forms.

You’ll use ACORD 125 whenever you’re applying for or renewing commercial policies that span multiple lines, such as general liability, property, workers’ compensation, or business auto.

How does it fit with ACORD 126 and 140?

ACORD 125 never travels alone. It pairs with line-specific forms that add detail for each coverage type:

• ACORD 126: General Liability section, capturing exposures, limits, and additional interests.
• ACORD 140: Property section, covering building values, contents, and protection details.
• ACORD 130: Workers’ Compensation, when you’re quoting WC policies.

Together, they create a full snapshot of the insured’s risk profile. If ACORD 125 is the résumé, the 126 and 140 are the detailed work experience pages.

Why ACORD 125 Still Matters in 2025?

Underwriting readiness: clean data and complete submissions

Even in 2025, when most carriers have digital portals, the ACORD 125 remains essential. Underwriters rely on it for a quick assessment of exposure and completeness.

An incomplete or outdated form often means delays, re-keying, or back-and-forth emails. ACORD itself advises using the latest edition as of now, that’s the 2024/11 version. According to ACORD’s October 2024 update notice, earlier editions like 2016/03 can create friction in submission systems and may not reflect current regulatory fields.

Compliance notes (state fraud warnings and signatures)

Every ACORD 125 includes legal sections such as fraud statements, signature blocks, and producer attestations. These vary by state. Using the wrong variant can invalidate a submission or slow approval.

Before sending, double-check that:

• The fraud statement matches the insured’s primary location.
• Producer and applicant signatures are in place.
• All electronic filings use the correct state code (e.g., NY, CA, TX versions).

Inside the ACORD 125 Form: Section-by-Section Walkthrough

Applicant Information (FEIN/SSN, NAICS/SIC, entity type)

This section identifies the business entity. Enter the FEIN or SSN, the NAICS or SIC code, and the business type (corporation, LLC, partnership, etc.). The NAICS/SIC codes describe what the business does critical for rating and risk classification.

Tip: Always provide both FEIN and NAICS codes. Missing or mismatched data is one of the most common reasons submissions bounce back.

Premises Information (locations and operations description)

List each physical location with a complete street address, including ZIP code and building number. Provide a brief but clear description of operations at each site.

For example, “Warehouse storing consumer electronics, non-manufacturing” is far more useful than “Warehouse.”

General Information (Y/N questions and remarks)

This section features several Yes/No questions covering prior losses, safety programs, subcontracting, and other exposures.

When a “Yes” answer requires an explanation, always attach supporting details on ACORD 101 (Additional Remarks). It’s better to over-explain here than leave an underwriter guessing.

Prior Carrier Information (terms and premiums)

List the carriers that insured the account in the past, including policy numbers, effective dates, and annual premiums. This helps underwriters gauge rate stability and claim experience.

Consistency between ACORD 125 and line-specific forms (126, 140) is essential. For example, if the property carrier listed on 140 differs from the carrier shown here, the underwriter will question why.

Loss History (time windows and documentation)

Attach three to five years of loss runs. Provide the total number of claims, paid amounts, and reserves for each policy year. If space runs out, again use ACORD 101.

Loss runs help underwriters predict frequency and severity, so make sure they’re current and legible.

Data Quality & Common Errors (And How to Avoid Them)

Missing fields, mismatched NAICS/SIC, version drift

Incomplete FEINs, empty address fields, or wrong edition numbers are common culprits behind “NIGO” (Not-In-Good-Order) rejections.

• Use the 2024/11 edition.
• Provide full FEIN and NAICS codes.
• Attach ACORD 101 whenever remarks exceed space limits.

According to ACORD eForms guidelines, electronic form versions help prevent these errors because the data feeds directly into agency systems.

Scan quality, handwriting, stamps & attachments

Illegible handwriting, missing page stamps, or skewed scans often cause re-key errors. If you’re sending PDFs, confirm they’re clean, high-resolution, and text-selectable.

If your agency uses scanning software, check OCR accuracy before submission. A faint fax or handwritten note can make critical data unreadable.

Going Beyond Manual: Automating ACORD 125 Data

IDP + Agentic Validation: What’s auto-extractable today?

Modern Intelligent Document Processing (IDP) tools can read ACORD 125 forms directly. They detect fields such as applicant details, carrier names, and NAICS codes without human input.

With agent-based validation, systems can cross-verify extracted values, like ensuring a FEIN follows the correct numeric pattern or a ZIP code matches the state listed.

See how leading insurers use AI to process ACORD forms in our Insurance Automation Case Study: State National Companies.

Supported revisions & fields (e.g., 2011–2016, ≈68 fields)

Most IDP platforms trained on ACORD 125 can handle multiple versions from 2011 through 2024, recognizing roughly 60 to 70 data fields, including applicant, prior carrier, and loss sections.

Systems can auto-map extracted data into policy-admin or CRM systems, reducing double entry.

Cross-document checks with 126/140 and loss runs

Some solutions can also cross-reference ACORD 125 with 126 (GL), 140 (Property), or uploaded loss runs. If building values or carrier names conflict, the system flags them for review before submission.

This saves significant time during pre-underwriting reviews and helps maintain submission consistency.

• Exception handling rules for incomplete submissions.

Implementation Checklist for ACORD 125 Automation

Step 1: Preparation

Start with a solid foundation for your ACORD 125 implementation.

1. Collect a few ACORD 125 form samples from real client submissions.
   
   
2. Create a simple data map that defines where each field should go within your system.
   
   
3. Set clear processing goals and SLAs, such as average time to complete a form.
   
   
4. Write down rules for handling incomplete or unclear data to avoid rework later.
   
   

Good preparation ensures consistent data capture and smoother automation down the line.

Step 2: Pilot Phase

Run a small ACORD 125 automation pilot before scaling. Test a variety of inputs, such as typed, scanned, and handwritten forms, to measure how your system performs. Focus on three key metrics:

1. Field-level accuracy across all sections of the form
   
   
2. Processing time saved compared to manual entry
   
   
3. Error frequency and validation results

Use these findings to refine your data-validation logic and improve accuracy before full rollout.

Step 3: Rollout

Once the pilot meets your accuracy and efficiency targets, move to production in stages.

1. Add a review or maker-checker workflow so flagged data can be verified easily.
2. Maintain a detailed audit trail that records every edit and approval for compliance.
3. Track early performance reports to fine-tune your automation settings.

A phased rollout reduces risk, builds user confidence, and helps your team adapt quickly to automated ACORD 125 processing.

Learn how automation transforms insurance workflows in our Insurance Document Automation Guide.

Modern Approach to ACORD 125 Automation

The “80% before you log in” principle

Today’s intelligent systems can handle most ACORD 125 processing before anyone even opens the file. Around 80% of the data is automatically captured, validated, and formatted. Reviewers step in only where business judgment or clarification is needed.

This shift keeps teams focused on underwriting insight rather than repetitive data entry. It also speeds up submissions and reduces the friction that often comes with manual reviews.

Validation and export workflow

Once data is extracted, reviewers see it in a clear, structured dashboard. They can confirm or adjust specific fields, add notes, and finalize in just a few clicks.

After approval, the information flows directly into AMS, CRM, or DMS platforms, keeping records synchronized across systems. Each edit is logged automatically, creating a built-in audit trail for compliance and transparency.

By connecting capture, validation, and export into one seamless process, automation turns ACORD 125 handling from a task into a streamlined workflow faster, cleaner, and far more consistent.

FAQs about the ACORD 125 Form

What is ACORD 125 used for in commercial insurance?

It’s the standard commercial insurance application that collects basic information about the insured and their operations. Every commercial line submission starts here.

Which forms commonly accompany ACORD 125 (126, 140, 131)?

Usually, the ACORD 126 (General Liability), ACORD 140 (Property), and ACORD 130 (Workers’ Compensation). Sometimes, ACORD 131 for Umbrella coverage is included.

What documents should I gather before filling out ACORD 125?

You’ll need the insured’s FEIN, business classification codes, loss runs for the past 3–5 years, and copies of current policies.

Can ACORD 125 be filled electronically?

Yes. ACORD offers eForms and eDocs/XML formats that integrate with most agency systems. Members can download the latest edition from the ACORD Forms Portal.

What version of ACORD 125 should I use, and why does it matter

Use the 2024/11 edition. Older ones may lack required state fields or produce re-key issues in submission platforms.

How do insurers use data from ACORD 125 during underwriting?

Underwriters analyze the data to assess risk exposures, set rates, and verify eligibility. It provides a baseline for loss trends and coverage needs.

Can ACORD 125 data be extracted automatically? Which fields?

Yes. Applicant information, NAICS codes, carrier details, and loss data are commonly auto-extracted by IDP systems.

In a Nutshell

You can find the latest ACORD 125 templates, eForms, and state-specific versions at acord.org/forms-pages/acord-forms. If your team is reviewing how submissions flow, it’s worth a quick chat with your IT or operations lead about automating form intake.

ACORD 125 may be decades old, but it’s still the backbone of commercial insurance submissions. Use the latest edition, fill it accurately, and let automation take care of the repetitive work. The payoff is simple: faster quotes, fewer errors, and smoother collaboration between brokers and carriers.