ACORD 125 Commercial Insurance Application - Nature of Business Section

How to Complete the ACORD 125 Nature of Business Section

Check Boxes

The Nature of Business Section starts with 11 check boxes. These are not mutually exclusive. Your customer could be in multiple businesses. Check all which apply.

The check box with no text beside it is for any other type of business your customer may operate. Check the box and write in the one or two word description of this other activity.

DATE BUSINESS STARTED (MM/DD/YYYY)

This is the date the business began. If it has been many years and/or a change of ownership, the month or date may not be available. You can always check the web site for the Secretary of State's office for the state your customer is incorporated in and find this information.

DESCRIPTION OF PRIMARY OPERATIONS

This is a free form entry area. This is where you sell your underwriter on this risk. Do not mislead, but be crisp and direct. If there is a specific way your insured does business that makes them a safer risk than others in this general business category, you should mention it here.

If you need more space use the ACORD 101 form.

RETAIL STORES OR SERVICE OPERATIONS

The row below the DESCRIPTION OF PRIMARY OPERATIONS is only required if you are insuring retail stores or service operations. If not, leave this blank.

INSTALLATION, SERVICE OR REPAIR WORK

Enter the percentage of total revenues- income - which are for installation, service or repair activity.

You determine the % by dividing the amount of sales from these specific activities by the total sales and then multiplying this amount by 100.

Example:  Total Sales $100,000.
                Sales from installation, service or repair activity   $30,000.

30,000 divided by 100,000 = .30

.30 times 100 = 30. Show as 30%.


OFF PREMISES INSTALLATION, SERVICE OR REPAIR WORK

Enter the percentage of sales that comes from these activities away from the business premise location.

This percentage can be equal to but not more than the percentage in the first question.

The math is done the same way as above.

DESCRIPTION OF OPERATIONS OF OTHER NAMED INSUREDS

Remember back on the bottom of Page 1 of this form you could enter two additional Named Insureds.

If you did this, enter the description of their business activities here. Be sure to indicate which description belongs to which specific OTHER NAMED INSURED.

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