ACORD 131: Definition, Benefits & Steps to Automate the ACORD Form

If you’ve been in insurance long enough, you know paperwork never ends. But not all forms carry the same weight. Some are routine, while others determine whether coverage moves forward or grinds to a halt. ACORD 131 falls into the latter category.

This form is what insurers rely on to understand risks that sit above standard liability policies. Complete it correctly, and approvals move quickly. Get it wrong, and you’re stuck in endless back-and-forth emails.

In this blog, we’ll explore what ACORD 131 is and why it matters, walk through the form section by section, highlight the common mistakes that often slow down approvals, explain how automation can simplify the process, and show the key benefits of using automated insurance document workflows.

By the end, you’ll see how combining ACORD standards with  Insurance Document Processing can cut hours of manual effort, improve accuracy, and keep workflows moving without delays.

What is ACORD 131, and why is it Important?

ACORD Form 131 is used to apply for umbrella or excess liability insurance. Umbrella coverage extends protection when claims exceed the limits of primary policies. For instance, if a general liability policy has a $1 million limit, an umbrella policy can add another $5 million.

The form captures:

• Insured’s identity and policy details
  
  
• Transaction type (new, renewal, endorsement)
  
  
• Limits of liability and retained limit
  
  
• Employee benefits liability exposure
  
  
• Vehicle and property risks
  
  
• Details of underlying insurance

ACORD 131 matters for:

• Accurate risk assessment. Carriers need a clear picture of exposures before approving extra coverage.
  
  
• Compliance. Regulatory standards often require consistent liability documentation.
  
  
• Faster claims. When excess limits are triggered, ACORD 131 provides a quick reference.
  
  
• Consistency. Using standardized ACORD formats ensures that insurers, brokers, and applicants all share the same structure.

Think of ACORD 131 as the “bridge” that connects primary policies to umbrella coverage. Without it, excess liability would be much harder to underwrite.

According to Verified Market Research, the U.S. Excess Liability Insurance Market was valued at USD 34.1 billion in 2023 and is projected to reach USD 48.5 billion by 2031, growing at a CAGR of about 5.15%. With the market expanding steadily, having accurate and standardized documentation like ACORD 131 becomes even more critical for managing risk and maintaining compliance.

How to Read ACORD 131

The form may look intimidating at first, but breaking it into parts makes it simple.

The ACORD 131 form may seem dense at first glance, but when you break it down by sections, it becomes much easier to understand. Here’s what each part is designed to capture and why it matters:

Basic Details of the Insured

This section records the insured’s name, policy number, and coverage dates. Accuracy here is critical because it ties back to the broader application forms (like ACORD 125) and ensures consistency across documents.

Policy Coverage Snapshot

Outlines the type of transaction, liability limits, retained limit, and whether the first-dollar defense applies. First-dollar defense means the insurer pays defense costs immediately without waiting for the deductible, giving policyholders early financial protection in disputes.

Employee Benefits Coverage

Captures liability exposures linked to employee benefit programs such as healthcare, retirement, or other company-provided benefits. Insurers use this section to gauge potential risks tied to benefit administration errors.

Underlying Insurance Requirements

Lists the policies that sit underneath the umbrella or excess liability coverage, commonly general liability, auto liability, and employer’s liability. These policies must meet minimum coverage levels before the umbrella coverage kicks in.

Vehicle-Related Risks

Covers exposures from vehicles owned, leased, or even non-owned but used by the insured. This helps insurers assess auto-related risks that could impact the overall liability picture.

Other Special Exposures

Provides space to document unique risks that don’t fit into standard categories, such as seasonal operations, unusual business locations, or specialized hazards.

Notes and Clarifications

The remarks section gives applicants a place to explain exceptions, provide context, or call out anything unusual. This ensures underwriters have a complete picture before issuing coverage.

Pro tip: Always cross-check with ACORD 125. If policy numbers or limits differ between the two forms, underwriting delays are almost guaranteed.

Common Errors to Avoid in ACORD 131

Mistakes on ACORD 131 can slow down processing or even result in rejection. Common issues include:

• Inconsistent data between ACORD 125 and ACORD 131 (names, dates, or policy numbers).
  
  
• Leaving mandatory fields blank. Even a single empty box can hold up approval.
  
  
• Underlying limits are too low. Umbrella policies won’t sit above coverage that doesn’t meet minimum thresholds.
  
  
• Vague remarks. Notes like “see attached” or “N/A” without context confuse underwriters.
  
  
• Incorrect currency formatting. Always write full numbers ($1,000,000), not shorthand like “1M.”

How to Fill ACORD 131: Step by Step

Here’s a simple process to get it right the first time:

1) Start with ACORD 125
Open the latest ACORD 125 and match basic details like the insured’s name, address, FEIN, and contact info. Make sure spelling and formatting are identical so there’s no confusion later. If the company structure has changed, note that before moving ahead.

2) Collect underlying policies
Pull the declarations pages for General Liability, Auto Liability, Employer’s Liability, and any other policies the umbrella will sit on top of. Write down carrier names, policy numbers, dates, and coverage limits. Check that each policy meets the umbrella’s minimum requirements and that the policy periods line up.

3) Identify key exposures
List anything that increases risk, such as the number of employees, payroll size, gross sales, vehicle fleets, or benefit plans offered. Also note if the business has seasonal operations, high-risk projects, or contracts that create extra exposure.

4) Enter identification details
Fill in the insured’s legal name, policy number, and effective date. This must match ACORD 125 exactly. If subsidiaries or additional insureds apply, include them here or in the schedule section.

5) Complete policy information
Select the transaction type (new, renewal, or endorsement). Record the umbrella limits, retained limit (or SIR), and whether the first dollar defense applies. Always write out full amounts (e.g., $1,000,000 instead of 1M). If limits are changing mid-term, explain the reason in the remarks.

6) Add underlying policies
List each underlying policy with the carrier name, policy number, effective and expiration dates, and limits. Double-check that limits meet the minimums required for umbrella coverage. If the umbrella is following form, make sure the underlying terms support it.

7) Fill in exposure sections
Complete the parts on vehicles (owned, hired, non-owned, plus radius and use), care/custody/control (property values), and employee benefits liability (plans offered and participant counts). Keep descriptions short and factual. For example, “25 light trucks, local deliveries within 50 miles.”

8) Use remarks for clarification
Only add remarks when you need to explain something unusual, like a gap in dates, a change in limits, or a contract with special requirements. Keep it clear and direct. Avoid vague notes like “see attached” without explanation.

9) Review everything for accuracy
Do one last check for names, dates, policy numbers, and dollar amounts. Make sure formatting is consistent and that ACORD 125 and 131 align. Save a draft PDF and read it as an underwriter would to catch errors.

10) Submit and store a copy
Send the completed form along with any supporting schedules. Keep a digital version with a clear file name (e.g., ClientName_ACORD131_2025-01-01.pdf). If you also exported data into Excel or CSV, save that for quick reference at renewal.

How to Automate ACORD 131 Processing

Manual form entry eats up time and leaves room for errors. With automation, processing ACORD 131 becomes much easier. Here are the key ways automation improves ACORD 131 processing:

Data Extraction

Data extraction technologies help capture information from ACORD 131 without manual retyping. Traditionally, Optical Character Recognition (OCR) was used to scan paper or PDF versions and convert text like names, limits, and policy numbers into digital form. Today, more advanced solutions such as Intelligent Document Processing (IDP) go beyond text capture by adding context, validation, and automation. This shift reduces keystroke errors, saves hours of manual work, and ensures cleaner data flows into downstream systems.

Field mapping

Once data is captured, automation maps each form field into structured formats such as Excel, CSV, or JSON. This structured output can feed directly into underwriting systems, compliance tools, or CRMs, eliminating the need for re-entry and making the data easy to search, sort, and analyze.

Validation checks

Automation does more than capture data; it verifies it. Systems run logic checks to confirm that required fields are filled, dollar amounts are in the right format, and policy limits meet umbrella requirements. If something is missing or inconsistent, the form is flagged before submission, cutting down on rejections.

Bulk uploads

Instead of entering forms one at a time, automation allows you to upload entire batches of ACORD 131 applications in a single step. This is especially valuable for brokers and carriers managing dozens or even hundreds of accounts at once, where manual review would be overwhelming.

Cross-form comparison

One of the most common issues is a data mismatch between ACORD 125 and ACORD 131. Automated systems can compare both forms line by line, catching inconsistencies in names, dates, or limits before they cause problems during underwriting.

If your goal is to reduce manual work and improve accuracy,  Intelligent Document Processing software delivers on both fronts.

Benefits of Automating ACORD 131

Filling ACORD 131 manually can feel like a never-ending process. Every box requires careful attention, and one mistake can delay approval. Automation takes the weight off by handling repetitive tasks, reducing errors, and giving insurers cleaner, faster data. Here’s how automation improves ACORD 131 processing:

1. Bulk Uploads

Instead of processing each form line by line, automation lets you upload hundreds of ACORD 131 forms at once. This is especially useful for brokers or carriers who manage large portfolios. Bulk upload features eliminate duplicate work, save hours of manual entry, and allow teams to handle peak workloads without additional staff.

2. Faster Processing Time

Manual reviews can stretch across days, especially when multiple underlying policies need cross-checking. Automated systems reduce this turnaround to minutes by extracting data instantly, comparing it with ACORD 125, and flagging any mismatches. Faster processing means insurers can issue umbrella coverage sooner, and customers get their policies without frustrating delays.

3. Improved Accuracy

Even the most careful underwriter can miss small details like a misplaced decimal or mismatched policy number. Automation uses validation checks to ensure fields like insured names, dates, and liability limits are consistent across forms. By catching errors before submission, automation helps reduce back-and-forth with carriers and builds trust in the data being supplied.

4. Multiple Formats Support

Not all teams use the same systems. Some prefer Excel, others rely on CSV or JSON integrations. Automated tools convert ACORD 131 data into multiple output formats so it can flow into underwriting platforms, CRM systems, or compliance databases without extra work. This flexibility makes it easier for insurers and brokers to integrate ACORD data into existing workflows.

5. Verification and Validation

Automation doesn’t just read forms; it checks them. Systems confirm that required fields are complete, policy limits meet umbrella thresholds, and values are entered in the correct format. These verification steps prevent costly rejections and help ensure compliance with carrier standards.

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Why Automating ACORD 131 is a Smart Move?

Automation isn’t just about working faster; it’s about getting things right the first time. The same principle applies across industries where document-heavy processes often create bottlenecks. By leveraging automation, organizations can:

• Cut down on manual work
  
  
• Improve accuracy and consistency
  
  
• Handle large volumes of documents without adding extra headcount

When applied to ACORD 131, automation enables insurers, brokers, and policyholders to experience a smoother process, fewer errors, and faster access to coverage.

Frequently Asked Questions about ACORD Forms

1. What is an ACORD 131?

ACORD 131 is the standard form used to apply for umbrella or excess liability insurance. It captures details about exposures, underlying policies, and liability limits. Insurers use this information to decide whether to issue coverage above primary policies.

2. Where can I download ACORD forms?

All official ACORD forms, including ACORD 131, can be downloaded from the ACORD website. Access usually requires an ACORD membership or a license, so most businesses obtain them through their insurance agent, broker, or carrier.

3. What is the purpose of ACORD forms?

ACORD forms provide a standardized way of collecting insurance data. Instead of each carrier using its own template, ACORD forms ensure consistency. This helps insurers, brokers, and policyholders communicate without errors, delays, or duplicate paperwork.

4. How many ACORD forms exist?

There are over 800 ACORD forms, covering property, casualty, life, health, and reinsurance lines. Each form has a specific use, such as ACORD 125 for general liability applications, ACORD 25 for certificates of liability, and ACORD 131 for umbrella liability coverage.

5. What does ACORD stand for?

ACORD stands for Association for Cooperative Operations Research and Development. It is a nonprofit organization that creates and maintains these forms in collaboration with the global insurance industry.

In a Nutshell

ACORD 131 might look like another box-ticking exercise, but it’s much more. It ensures carriers see the full picture before approving umbrella or excess liability coverage. Filling it correctly reduces delays, improves compliance, and accelerates the claims process.

The demand for excess and umbrella liability insurance is only set to rise. Allied Market Research reports that the global umbrella insurance industry generated USD 72.5 billion in 2021 and is expected to reach USD 170.7 billion by 2031, at a CAGR of 9.2%. As volumes grow, automating ACORD 131 will help insurers and brokers keep pace without overwhelming their teams.

With automation, brokers and insurers can turn ACORD 131 from a manual burden into a seamless workflow.

Want to cut hours of manual insurance form entry?

Explore Infrrd’s Insurance Document Processing and IDP automation software, which can automate ACORD forms, claims, and policy workflows with 95%+ accuracy.

Insurance paperwork isn’t going away, but with Infrrd, you can leave your competitors behind.

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