ACORD 175 (Professional Liability Application)
The ACORD form used for professional liability and errors and omissions insurance applications.
What It Is
The ACORD 175 is the Professional Liability section used for Errors and Omissions (E&O) and professional liability insurance applications. It captures information about the applicant's professional services, client base, revenue by service type, prior claims history, risk management practices, and contractual liability exposure.
The form includes sections specific to various professional disciplines and asks detailed questions about quality control procedures, client engagement practices, and the professional credentials of the firm's principals and employees.
As a claims-made coverage, the ACORD 175 also captures critical information about retroactive dates, prior coverage, and extended reporting period requirements.
Why It Matters for Brokers
Professional liability placements require detailed knowledge of the insured's practice and the specific risks associated with their professional services. The ACORD 175 provides the structured format for presenting this information to underwriters. Brokers who help clients accurately disclose their services, revenue mix, and claims history on the ACORD 175 position the account for the best possible terms. Inaccurate or incomplete applications are a common cause of claims-made coverage disputes.
Real-World Example
An architecture firm with $5M in annual revenue applies for professional liability coverage. The broker completes the ACORD 175 documenting the firm's project types (60% commercial, 30% residential, 10% institutional), their use of standard AIA contracts, a formal quality assurance review process, and no claims in the past five years. The thorough application results in a preferred-tier quote with a competitive deductible.
Common Mistakes
- 1Misclassifying the type of professional services provided, which can result in coverage that does not match the firm's actual practice.
- 2Failing to disclose prior claims or circumstances that could give rise to a claim, creating a material misrepresentation.
- 3Not confirming the retroactive date matches the insured's earliest prior coverage inception, which can leave prior acts uncovered.
How brokerageaudit.com Handles This
Submission Intake guides brokers through the ACORD 175 with industry-specific prompts based on the professional discipline. The platform validates retroactive dates against prior policy information and flags potential gaps in claims-made continuity.