Table of Contents ALL ACORD 126 Commercial General Liability Section Posts

All Instructions for ACORD 126 Commercial General Liability Posts

Instructions for ACORD 126 Commercial General Liability

ACORD 126 Basic Account Information

http://simply-easier-acord-forms.blogspot.com/2014/06/how-to-complete-acord-126-commercial.html


ACORD 126 Coverage

http://simply-easier-acord-forms.blogspot.com/2014/06/acord-126-coverage-section.html


ACORD 126 Limits

http://simply-easier-acord-forms.blogspot.com/2014/06/how-to-complete-acord-126-limits-section.html


ACORD 126 Schedule of Hazards

http://simply-easier-acord-forms.blogspot.com/2014/06/how-to-complete-acord-126-schedule-of.html


ACORD 126 Claims Made and Employee Benefits

http://simply-easier-acord-forms.blogspot.com/2014/06/acord-126-claims-made-and-employee.html


ACORD 126 Contractors Section

http://simply-easier-acord-forms.blogspot.com/2014/06/how-to-complete-acord-126-contractors.html


ACORD 126 Products and Completed Operations

http://simply-easier-acord-forms.blogspot.com/2014/06/how-to-complete-acord-126-products-and.html


ACORD 126 Additional Interest and Certificate Recipient

http://simply-easier-acord-forms.blogspot.com/2014/06/how-to-complete-acord-126-additional.html


ACORD 126 General Information Section

http://simply-easier-acord-forms.blogspot.com/2014/06/how-to-complete-acord-126-general.html


ACORD 126 Remarks and Fraud Warning

http://simply-easier-acord-forms.blogspot.com/2014/06/how-to-complete-acord-126-remarks.html

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How to Complete the ACORD 126 Remarks Section and Read the Fraud Warning

ACORD 126 Remarks Section and Fraud Warning

REMARKS

This is a free form text entry box where you can add any information you wish. I recommend you use it for things you may have put in your cover letter to the underwriter. That letter will likely get lost somewhere, but the application will remain for years.

If you are using the Remarks section to add to a response to a question earlier in this form, start the remark with the section name and question number. That will allow your underwriter to understand what this additional information is meant to answer.

There is a fair amount of space here but is you need more use the ACORD 101.

FRAUD

The very last thing on the ACORD 126 for is a bunch of text about the criminal status of knowingly and with intent providing false information in these documents. It is a crime and a felony in many states.

The purpose of placing this on the form is either to advise you which states it is not a crime in so you can go to that state to complete the forms - I doubt that - or to impress upon you and your insured the importance of being honest, accurate and disclosing information fully.


I hope this has helped you learn how to complete the ACORD 126 Remarks section.

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How to Complete the ACORD 126 General Information Section

ACORD 126 General Information Section

The General Information questions begin on page 3 and continue on page 4 of the ACORD 126 Commercial General Liability Section.

As I am writing this on June 10, 2014 this section has 20 questions. All questions are set up as Yes or No answers first. Then, if you have any Yes answers you need to provide an explanation.

The explanation should begin in the free form text entry space in the box with the Question.

If you need more room use the Remarks section on page 4. Remember to begin your additional information in the Remarks section with the question number.

Beware of making the mistake of thinking you should answer all questions with a "No". For instance, the current question #19 asks whether there is a formal, written safety and security policy in effect. Answering this "No" will make this risk less attractive to your underwriter.

Take the time to read each question completely. I even read things like this out loud sometimes. It stops me from letting boredom allow my eyes to fog over and skip some things. If I am really having a hard time focusing I will read a few sentences backwards. That always helps me refocus. Plus sometimes it can make the sentence sound like Yoda is asking a question.

I hope this helps you learn how to complete the ACORD 126 General Information Section.

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How to Complete the ACORD 126 Additional Interest and Certificate Recipient Section

ACORD 126 Additional Interest and Certificate Recipient

If you have more than one Additional Interest or Certificate Recipient use the ACORD 45 form to list the others and attach that form to your application.

Not all fields apply to all insureds. Only complete the ones which do apply. This is very important as any Additional Interest is given many of the rights of the Insured. You do not want to give these rights by error.

INTEREST

Check the box which applies for this specific business entity.

ADDITIONAL INSURED - Good Definition HERE

EMPLOYEE AS LESSOR - If one of this business' employees is leasing property to this business

LIENHOLDER - a person who retains legal possession of a piece of property until the person to whom he/she has advanced money for use of the property has satisfactorily repaid the debt.

LOSS PAYEE - Good Definition HERE

MORTGAGEE - Good Discussion HERE

OTHER - List your own here

NAME ADDRESS

Enter the full name and address as they need to be shown on a certificate of insurance.

RANK

Additional Interest can have a priority of rights. A rank of 1 would indicate this Additional Interest would receive protection from the policy prior to payments being made on behalf of lower ranked Additional Interests.

CHECK BOX - EVIDENCE / CERTIFICATE 

ACORD advises you to put a check in the box if the Additional Interest Requires a Certificate. I suppose you need to add a Remark as to whether that is a Certificate or an Evidence of Insurance form.

Evidence means the Additional Interest requires an ACORD 27 or ACORD 28 Evidence of Insurance form to be issued.

REFERENCE  / LOAN #

Enter the loan number.

INTEREST IN ITEM NUMBER

LOCATION, BUILDING, ITEM, ITEM DESCRIPTION

The number to enter here is the number referencing this at other places in this application. For instance, Location refers to the location number listed in the PREMISES INFORMATION section at the top of this page.

ITEM DESCRIPTION

If there is no other reference number in this form or other forms which are part of this application, enter a description.


I hope this helps you learn how to complete the ACORD 126 Additional Interest and Certificate Recipient Section.

How to Complete the ACORD 126 Products and Completed Operations Section

ACORD 126 Products and Completed Operations Section

The Products / Completed Operations section of the ACORD 126 is the bottom half of the second page.

PRODUCTS / COMPLETED OPERATIONS

The first section asks for a description of individual products. Even small manufacturers probably have more than three products. You will most likely need to use the ACORD 101 form to list more products. Or you could use a spreadsheet and attach it to the application.

There is also wording on the application asking you to include any literature, brochures, labels, warnings, etc.

There are seven columns for each listed product.

1 - PRODUCTS - give a brief description of the product. I would include the product's name.

2 - ANNUAL GROSS SALES - this would be the dollar amount of sales rounded off to a reasonable number.

3 - # OF UNITS - use a numeric entry. Rounding off is acceptable.

4 - TIME IN MARKET - This is from the date this product was first sold to an intended end user. If there have been several generations of this product, and those generations have significant product changes, I suggest you list these generations as separate products.

5 - EXPECTED LIFE - how long does the manufacturer expect this product to continue to be used?

6 - INTENDED USE - a brief description of how the manufacturer thinks people should be using this product.

7 - PRINCIPAL COMPONENTS - in creating this list I am certain the underwriter would like to know if any of the components are made by other manufacturers and simply assembled by your insured. That will lead to your underwriter asking about the insurance carried by that component provider. You might as well anticipate that question and answer it in advance if possible.

The limited space provided on the ACORD for really does argue for you to create a spreadsheet for this information.

GENERAL QUESTIONS ON PRODUCTS / COMPLETED OPERATIONS

There are ten yes or no questions as of this writing (6/6/2014). If the answer to any question is yes you will need to use the space under the question to enter an explanation. If you need more room use the REMARKS section of this form.

1 - DOES APPLICANT INSTALL, SERVICE OR DEMONSTRATE PRODUCTS? It is hard for me to understand how the answer to this question could ever be No.

2 - FOREIGN PRODUCTS SOLD, DISTRIBUTED, USED AS COMPONENTS? (If YES, attach ACORD 815) Foreign products refers to products imported into this country as opposed to products exported to other countries.

3 - RESEARCH AND DEVELOPMENT CONDUCTED OR NEW PRODUCTS PLANNED? If your insured is not doing this then they are probably not going to be in business for the long term.

4 - GUARANTIES, WARRANTIES, HOLD HARMLESS AGREEMENTS? You might as well include copies of any written documents on these. Your underwriter will certainly ask for them.

5 - PRODUCTS RELATED TO AIRCRAFT/SPACE INDUSTRY? That would be pretty cool. Especially if you were insuring things in outer space. Read the policy definition of territory of coverage.

6 - PRODUCTS RECALLED, DISCONTINUED, CHANGED?

7 - PRODUCTS OF OTHERS SOLD OR RE-PACKAGED UNDER APPLICANT LABEL?

8 - PRODUCTS UNDER LABEL OR OTHERS?

9 - VENDORS COVERAGE REQUIRED? Your underwriter will also ask about required certificates of insurance.

10 - DOES ANY NAMED INSURED SELL TO OTHER NAMED INSUREDS?


I hope this helps you learn how to complete the ACORD 126 Products and Completed Operations section.

How to Complete the ACORD 126 Contractors Section

ACORD 126 Contractors Section

1. DOES APPLICANT DRAW PLANS, DESIGNS, OR SPECIFICATIONS FOR OTHERS? (Petty grammatical note - there should not be a comma after the word designs)

This is a yes or no question. If the answer is yes use the space in the question box to explain. If you need more space use the REMARKS section of this form. If you need still more space use the ACORD 101 form.

The paragraph above applies to all explanations in this section. If you need even more space and the underwriter is in a location you have always wanted to visit, get the business to send you there to explain in person. If the underwriter is in a location you never want to visit, invite the underwriter to have his employer send him on a business trip to visit you. Have him meet the insured and take them both to an expensive dinner.

2. DO ANY OPERATIONS INCLUDE BLASTING OR UTILIZE OR STORE EXPLOSIVE MATERIAL? Answer yes or no with an explanation as outlined in #1. (Grammar note: this is the correct use of no comma, although it reads a bit strange.)

3. DO ANY OPERATIONS INCLUDE EXCAVATION, TUNNELING, UNDERGROUND WORK OR EARTH MOVING? Answer yes or no with an explanation as outlined in #1. (Grammar note: this is the correct use of the comma.)

4. DO YOUR SUBCONTRACTORS CARRY COVERAGES OR LIMITS LESS THAN YOURS? Answer yes or no with an explanation as outlined in #1.

5. ARE SUBCONTRACTORS ALLOWED TO WORK WITHOUT PROVIDING YOU WITH A CERTIFICATE OF INSURANCE? Answer yes or no with an explanation as outlined in #1.

6. DOES APPLICANT LEASE EQUIPMENT TO OTHERS WITH OR WITHOUT OPERATORS? Answer yes or no with an explanation as outlined in #1.

At the very bottom of this section are questions about subcontractors.

DESCRIBE THE TYPE OF WORK SUBCONTRACTED.  Use the space below the question to enter free form text. If you need more room use the REMARKS section on page 4 of the ACORD 126.

There are 4 small boxes along the top of the subcontractors box.

$ PAID TO SUBCONTRACTORS Enter a total dollar amount. You can round to the nearest thousand dollars.

% OF WORK SUBCONTRACTED Enter a percentage.

# FULL TIME STAFF Full time staff is normally considered to be staff that works more than a minimum of 30 hours a week. Enter a number.

# PART TIME STAFF Part time staff is normally considered to be staff that works less than a minimum of 30 hours a week. Enter a number.


I hope this has helped you understand how to complete the ACORD 126 contractors section.

How to Complete the ACORD 126 Limits Section

ACORD 126 Limits Section

LIMITS APPLY

The Limits section at the top of the first page of the ACORD 126 begins by asking you to fill in the General Aggregate Limit - see RED box below.

GENERAL AGGREGATE: IRMI has a good definition of General Aggregate Limits here.

To quote the first part of their definition " The maximum limit of insurance payable during any given annual policy period for all losses other than those arising from specified exposures. Under the standard commercial general liability (CGL) policy, the general aggregate limit applies to all covered bodily injury (BI) and property damage (PD) (except for injury or damage arising out of the products-completed operations hazard) and all covered personal and advertising injury."

Next there are four check boxes. Only one can apply. Example, if the General Aggregate applies per LOCATION, check the box to the immediate left of the word LOCATION.

There are 7 more lines where you can enter Limits.

PRODUCTS & COMPLETED OPERATIONS AGGREGATE
PERSONAL & ADVERTISING INJURY
EACH OCCURRENCE
DAMAGE TO RENTED PREMISES (each occurrence)
MEDICAL EXPENSE (Any one person)
EMPLOYEE BENEFITS
BLANK LINE FOR FREE FORM ENTER OF OTHER

Enter limits only for coverage which is provided under this policy.

You can have all of these coverages, none of these or some of these.

The limits go in the row in the blue box in the above picture.

PREMIUMS

If this is an application for a quote, you will most likely be leaving the premium fields empty. You underwriter will be providing you with her premium quotations.

I hope this helps you learn how to complete the ACORD 126 Limits Section.

ACORD 126 Coverage Section

How to Complete the ACORD 126 Coverage Section

Coverages

The Coverages Section is made up of three parts. In this lesson we will discuss the Coverages and Other Coverages. Tomorrow we will discuss Limits.

The first area for coverages is a group of check boxes Two coverages are listed...

Commercial General Liability
Owner's & Contractors Protective

There is a check box next to a blank text entry field for you to enter other coverages.

Check each of these which apply.

There are two check boxes under the words "Commercial General Liability". One is for Claims Made, the other is for Occurrence.

You can only have one of these. This refers to whether the coverage is provided on a Claims Made or Occurrence format.

DEDUCTIBLES

The Deductibles section gives you three check boxes for coverages to which the deductibles apply. Check each that will have a deductible.

Clearly, each coverage can have its own deductible. Bodily Injury can have one deductible, or no deductible.

When I was still an underwriter, when we were still handwriting polices on stone tablets, adding a small property damage deductible to general liability coverage was a way to get a meaningful premium savings. Plus your competition hardly ever knew this was possible.

Check the Appropriate box to indicate whether the deductibles apply "Per Claim" or "Per Occurrence".


OTHER COVERAGES, Restrictions, and/or ENDORSEMENTS

Other Coverages, Restrictions and / or Endorsements is a free form text entry space.

If you run out of room, use the Remarks section.

NOTE: for hired and / or non-owned automobile liability coverage use the appropriate ACORD 137 state specific form.

WISCONSIN

Yes, Wisconsin just had to be different. Why they decided to include anything about commercial auto insurance is a commercial general liability form is beyond me. I cannot even begin to image the special interest and backroom  politics which led to this. Where is the money?

Anyway, more seriously, if your are insuring a risk in Wisconsin and if non owned only auto coverage is to be provided under this policy, check all appropriate boxes.


I hope this helps you learn how to complete the ACORD 126 Coverages Section.

How to Complete the ACORD 126 Commercial General Liability Section

ACORD 126 Commercial General Liability Section

The ACORD 126 is attached or added to the ACORD 125 when the coverage for which you are applying is commercial general liability insurance.

DATE: In the top right hand corner of the form you should enter the date you are completing this form and sending it to your underwriters.

AGENCY / CARRIER / POLICY / APPLICANT INFORMATION

AGENCY: This is your agency's name. If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

CARRIER: This is the carrier to whom you are sending the application. If you are sending the application to more than one carrier, you may leave this blank so you don't alert each carrier to their competition.

If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

NAIC CODE:  NAIC stands for the National Association of Insurance Commissioners.

Here is their website home page...

http://www.naic.org/index.htm

You can learn more at this earlier post we made - http://simply-easier-acord-forms.blogspot.com/2014/03/what-is-naic-code.html

If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

POLICY NUMBER: If you are sending in a new application you will not have a policy number so you will leave this blank.

If you are sending in a renewal application this will be the policy number for this policy's current term.

If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

EFFECTIVE DATE: This would be the date you want this policy to begin. If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

APPLICANT / FIRST NAMED INSURED: This is the applicant name from the ACORD 125. If you are using our Cap Dat ACORD system, this field will have pre-filled from the information in the ACORD 125 if you have combined these forms into a single form.

I hope this helps you learn how to complete the ACORD 126 commercial general liability section.

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