How To Fill Out ACORD 126

ACORD 126 is the Commercial General Liability Section of the commercial lines application. It attaches to ACORD 125 (the General Information page) and together they form the complete submission package for a commercial general liability policy. Underwriters at carriers like Travelers, Hartford, and Chubb use ACORD 126 to rate the account, select the coverage form, and determine the premium. A missing SIC code, an unclear occupancy description, or a blank subcontractor section will delay binding or trigger a call-back from the underwriter.

Key Takeaways

• ACORD 126 requires ACORD 125 to form a complete submission - neither form stands alone for a commercial account.
• The classification of operations section (SIC codes, payroll, receipts, area) drives the manual premium more than any other section.
• Occurrence vs. claims-made selection on page 1 affects every other coverage decision; confirm the correct form with the client before submission.
• The subcontractors section must reflect actual practices - carriers audit this section at audit time and discrepancies generate additional premium.
• Products/completed operations is a separate limit that contractors and manufacturers must address explicitly; leaving it blank is not the same as declining the coverage.
• Prior loss history must go back 5 years; incomplete loss runs are the single most common reason for underwriting delays on new accounts.

What ACORD 126 Is and How It Works With ACORD 125

The acord-form system divides commercial applications into two layers. ACORD 125 captures the general account information - named insured, mailing address, SIC code for the main operation, prior carrier, and policy dates. ACORD 126 captures the coverage-specific data for general liability.

Every field on ACORD 126 feeds a specific underwriting decision. The occupancy description helps the underwriter assign a hazard group. The square footage triggers per-unit rates for premises liability. The payroll and receipts figures are the basis for most classification codes used in manual premium development.

Submitting ACORD 126 without ACORD 125 is incomplete. Submitting ACORD 125 without ACORD 126 tells the underwriter nothing about the exposure. Both forms travel together.

For related context on binding a policy once the application is submitted, see our guide on the binder process at Post #561.

Section 1: Premises Information

The premises section captures the physical location(s) where the named insured operates. Fill in the complete address for each location, including street, city, state, and ZIP. If the insured has multiple locations, list each separately - underwriters assign territory factors by location, and a suburban location may rate differently than a downtown address.

Occupancy description. Write a plain-English description of what happens at the premises: "retail florist with delivery," "auto repair - no body work," "office use only - no public visitors." Vague descriptions like "commercial business" will come back for clarification.

Square footage. This is the total occupied floor area for each location. For retail, food service, and habitational risks, square footage is often the primary exposure base. A 5,000-square-foot restaurant and a 5,000-square-foot law office have fundamentally different premises liability profiles.

Interest. Check the appropriate box: owner, tenant, or owner-tenant. A tenant's GL policy responds differently than an owner's when a visitor claims injury from a structural defect.

Section 2: General Liability Coverages - Occurrence vs. Claims-Made

The most consequential check box on ACORD 126 is the coverage form selection: occurrence or claims-made. This decision belongs to the client with the broker's guidance, not the underwriter.

Occurrence form. Covers claims arising from bodily injury or property damage that occurs during the policy period, regardless of when the claim is filed. ISO form CG 00 01 is the standard occurrence form. Most commercial accounts use occurrence coverage.

Claims-made form. Covers claims first made during the policy period. ISO form CG 00 02. Used primarily for professional liability exposures, but available for GL. If the insured switches from occurrence to claims-made, a retroactive date must be established to protect against pre-switch incidents.

The claims-made selection also requires a retroactive date entry on ACORD 126. A blank retroactive date on a claims-made policy creates a coverage gap from the inception of the insured's operations to the policy date.

Limits. ACORD 126 captures six standard GL limits:

Contractual requirements often dictate minimum limits. A subcontractor working for a general contractor that requires $1M/$2M will need those specific limits reflected on the ACORD 126 before submission.

Section 3: Additional Coverages

The additional coverages section captures four specific sub-coverages that can be included or excluded.

Products/Completed Operations. Coverage for bodily injury or property damage arising from the named insured's products or completed work. This is critical for any insured that manufactures, distributes, or installs products, or that performs work that creates ongoing exposure after completion. Section limits apply separately from the general aggregate.

Personal and Advertising Injury. Coverage for offenses like libel, slander, copyright infringement, and false arrest. Indicate the limit requested. Most insureds elect this coverage as part of standard GL.

Medical Payments. A no-fault coverage that pays medical expenses for third parties injured on the premises regardless of negligence. The standard limit is $5,000 per person, though $10,000 is common. Check "excluded" only when the client has explicitly requested exclusion.

Fire Damage Legal Liability. Covers the named insured's legal liability for fire damage to rented premises. The standard limit under ISO CG 00 01 is $100,000 per occurrence. Restaurants, dry cleaners, and tenants operating open-flame equipment often need higher limits.

Section 4: Classification of Operations

This section determines the premium. Underwriters use SIC codes (Standard Industrial Classification codes) to assign manual rates per $1,000 of payroll, per $1,000 of receipts, or per unit of area. Every type of business operation gets a code.

SIC code. Identify the primary SIC code for the insured's operations. For a commercial painting contractor, that's SIC 1731 (Electrical Work - painting uses 1731 under ISO classification) or more precisely the NCCI or ISO GL class code applicable to the carrier's rating manual. Carry the right code - a janitorial contractor rated as a building cleaning service (SIC 7349) rates very differently from one rated as an industrial cleaning contractor.

Exposure basis. Three common bases:

• Payroll - used for contractors, manufacturers, and service businesses. Report total annual payroll by classification code.
• Gross Receipts/Sales - used for retail, wholesale, and service operations. Report total annual revenues.
• Area (square footage) - used for offices, habitational, and some retail.

Splitting operations. When the named insured performs multiple types of work, split the exposures by classification. A mechanical contractor doing HVAC work and plumbing work will have separate classification codes and separate payroll allocations. An inaccurate split creates an audit adjustment at year-end.

Underwriters verify classification data against the prior carrier audit worksheets. Inconsistencies between the ACORD 126 submission and the audit produce additional premium or questions. Report accurate numbers on the front end.

Section 5: Subcontractors

The subcontractor section is one of the most audited sections on ACORD 126. Carriers use this data to determine how much of the named insured's work is performed by others and whether those subcontractors carry adequate insurance.

Percentage of work subcontracted. Report the percentage of total annual revenue paid to subcontractors. A general contractor paying $2M of $5M in annual revenue to subs should report 40%.

Subcontractor insurance requirements. Indicate whether the named insured requires subcontractors to carry general liability insurance. Most carriers want to see that subs are required to carry at minimum $1M per occurrence and to name the insured as an additional insured.

Certificates from subcontractors. Indicate whether certificate-of-insurance documentation is collected from subcontractors before work begins. Carriers offering wrap-up credits require evidence that subcontractor COI collection is a documented practice. Some underwriters will offer a 5-10% premium credit for verified sub COI programs.

If the insured does not require certificates from subcontractors, the underwriter will typically load the premium to account for the uninsured sub exposure. Accurate reporting here affects the final premium either direction.

Section 6: Prior Loss History

The loss history section requires 5 years of loss runs. Complete the section for each year: policy period, carrier name, number of claims, total incurred losses, and whether any claims remain open.

Carriers weigh frequency and severity independently. Three small claims may concern an underwriter more than one large claim with a clear explanation. Provide a loss description for any claim over $10,000 - "slip and fall at client premises, $45,000 settlement, claim closed" tells the underwriter far more than a bare dollar figure.

Open claims. Report any open claim in the current year or prior 4 years. An open claim means reserves are still active. Underwriters will contact the prior carrier or request reserve information before binding.

No prior losses. If the account has no loss history (new business, startup, or a true clean record), write "no losses" explicitly in each year. A blank loss history section looks like incomplete information, not a clean record.

Section 7: Products/Completed Operations - The Contractor-Specific Exposure

Products/completed operations deserves a dedicated section because it carries a separate aggregate limit and because the exposure calculation differs fundamentally from premises liability.

For contractors, completed operations exposure is the liability arising from work performed and completed. A roofing contractor who finishes a job in 2024 can face a water damage claim in 2027 when a leak traces back to faulty flashing. The claim falls under completed operations because the work was done before the claim arose.

Separate limits matter. The products/completed operations aggregate is a separate bucket from the general aggregate. Once the products/completed ops aggregate is exhausted, no further products or completed operations claims are covered that policy year. Contractors with high volume or complex work should carry products/completed ops aggregates equal to or greater than the general aggregate.

Classification codes for completed operations. The exposure basis for completed operations is typically gross receipts from the type of work performed. A contractor reporting $3M in residential remodeling receipts will have those receipts assigned to the appropriate completed operations classification code, generating a separate premium component.

How classification codes affect total premium. The final manual premium is the sum of all classification premiums: premises, operations, and products/completed operations. An underwriter may increase the premises rate, add a completed operations rate, and then apply experience modification, scheduled credits or debits, and blanket multipliers to arrive at the final premium. Each classification code carries its own rate - a structural steel erector rates at a multiple of what a clerical office worker rates.

For more on how classification codes interact with GL pricing for specialty contractors, see Post #563.

Completing the Form: Practical Checklist

Before submitting ACORD 126, verify each item:

• Coverage form selected (occurrence or claims-made) - not left blank
• Retroactive date entered if claims-made is selected
• All six limits populated with specific amounts
• Every premises location listed with occupancy and square footage
• SIC codes assigned and exposure bases (payroll/receipts/area) populated
• Subcontractor section completed with percentage and COI practices
• Prior 5-year loss history completed - no blank years
• Products/completed operations section addressed - not left blank
• Named insured's signature and date on the application

Incomplete submissions add 3-7 business days to the underwriting turnaround at most standard carriers. Complete submissions submitted with current loss runs get quoted faster and avoid the back-and-forth that frustrates producers and clients alike.

Frequently Asked Questions

What is ACORD 126 used for?

ACORD 126 is the Commercial General Liability Section of the commercial lines application. It attaches to ACORD 125 (General Information page) to form a complete submission for a commercial general liability policy. The form captures premises data, coverage selections, classification of operations, subcontractor information, and prior loss history - the inputs underwriters need to rate and quote the account.

Do I need both ACORD 125 and ACORD 126 to submit a GL application?

Yes. ACORD 125 provides the account-level information (named insured, address, prior carrier, effective dates). ACORD 126 provides the coverage-specific data. Submitting one without the other produces an incomplete application. Most carriers will return incomplete submissions or suspend them pending the missing form.

What is the difference between occurrence and claims-made on ACORD 126?

An occurrence policy covers bodily injury or property damage that happens during the policy period, no matter when the claim is reported. A claims-made policy covers claims that are first reported during the policy period, regardless of when the injury or damage occurred. Most commercial GL accounts use occurrence form (ISO CG 00 01). Claims-made GL is less common and requires a retroactive date to be established on the ACORD 126.

How do classification codes affect the GL premium?

Classification codes (SIC codes mapped to ISO or NCCI GL codes) determine the manual rate per $1,000 of payroll, per $1,000 of receipts, or per square foot of area. A higher-hazard classification like structural steel erection carries a manual rate many times higher than office-and-clerical exposure. Accurate classification reporting directly determines the final premium - misclassification in either direction creates either audit exposure or unnecessary overpayment.

What happens if I leave the subcontractor section blank on ACORD 126?

A blank subcontractor section is treated as incomplete information by most underwriters. The carrier may return the application, assume maximum subcontractor exposure and load the premium accordingly, or request a supplemental subcontractor questionnaire before quoting. Fill in the percentage of work subcontracted honestly and confirm whether the named insured collects certificates of insurance from subcontractors before work begins.

How many years of loss history does ACORD 126 require?

ACORD 126 requires 5 years of prior loss history. Report each policy year with the carrier name, number of claims, total incurred losses (paid plus reserves), and whether claims remain open. Attach the full loss runs from prior carriers. If the account has no losses, write "no losses" explicitly for each year - a blank section looks like missing data rather than a clean record.

Written by Javier Sanz, Founder of BrokerageAudit. Last updated April 2026.

Build complete ACORD 126 submissions without errors. BrokerageAudit's ACORD Form Library gives you fillable ACORD 126 and ACORD 125 templates, prefilled fields for returning clients, and a built-in checklist that flags incomplete sections before you submit. Access the ACORD Form Library