How to Complete the ACORD 125 Premises Information
The Premises Information Section has room to list up to four locations.
Locations 2 through 4 are completed the same way as location 1.
If you have more than 4 locations use the ACORD 823 for those locations.
LOC# Location number. Starting with the first location assign this location number 1. Then follow with location number 2, etc. Or, if you are trying to irritate people, make the first location an "A" and the second location the number three, etc. I don't suggest this, but at least it still gives you and any other party looking at the application the same reference point.
STREET Enter the full street address of this location. For example - 3000 Computer Dr, Suite 200.
BLD# This is the building number for the building at this location. If the buildings actually have a building number displayed on the outside of the building, use this number. A location does not always include a building. For instance, your customer might own vacant land.
CITY The city for the physical street address.
STATE The two character abbreviation for the state in which this location exists. Example CA for California.
COUNTY The full county name for the location of this premise.
ZIP The 5 digit zip code plus the 4 digit extension if that is available.
CITY LIMITS There are three check boxes. You can only check one.
INSIDE means inside the city limits.
OUTSIDE means the premises is outside the city limits.
I assume the third is for any other municipal or county designation which applies in your state. Maybe INSIDE FIRE DISTRICT.
The importance of all this of course is the fire rates which will apply. Inside the city is always a lower fire rate than outside the city.
Some premises are located across city limit lines. As a general rule of thumb, it has been my experience that some structure must be on the land inside the city limit and then all other structures on the land will be responded to by the city fire department.
We once had an ice cream parlor put up a small metal shed in the corner of the property inside the city limit. Even though the main building was not connected, the main building received inside the city limits fire rates saving much more than the cost of the metal shed.
They also made the best banana pudding ice cream I have ever eaten.
INTEREST Three choices. You get to select one.
OWNER - The insured owns the premises. The ownership will have to be in the same legal name as one of the names in the Named Insured section on page one.
TENANT The insured rents or leases the premises.
OTHER - I ave no idea.
# FULL TIME EMPL The number of full time employees at this premises.Use numbers instead of letters.
# PART TIME EMPL The number of part time employees at this premises. Use numbers rather than letters. Where I live, part time is defined as less than 30 hours a week.
DESCRIPTION OF OPERATIONS A brief, because that is all the room you have, text description of what work is performed at this premises.
ANNUAL REVENUES: $ The estimated annual revenue generated for the business from activities at this premises location. Your customer may very well not be able to break this out by building or even location. That is not always normal accounting practice. If they do not have that information just leave this blank. My guess is this is one of those questions that is on the form only because the form was created by a committee. I suppose this one question is a gimme to the committee member that had no other question in the form.
OCCUPIED AREA List as a number of square feet. It may help at this point to know that an acre is 43,560 square feet. That will make your measurements easier than trying to do the math on oddly shaped property lines.
OPEN TO THE PUBLIC AREA List as a number of square feet.
TOTAL BUILDING AREA This is almost always on record at the county tax office.
ANY AREA LEASED TO OTHERS Y/N Input a "Y" or "N" if you are typing. If you are filling this form out by hand you could just circle the answer.
I hope this has helped you better understand how to complete the ACORD 125 commercial insurance application premises information section. I hope it also gave you some clever thoughts on how to lower your customers insurance premiums.
I believe a steady and regular amount of time spent learning about insurance and ACORD Forms makes you a better insurance professional.
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