ACORD 126 Fillable PDF – Commercial General Liability Form
Commercial General Liability Section
ACORD 126 is used during the commercial liability application process to document company operations, hazard risks, and insurance classifications.
Form Type: GL Supplement
Edition: 2016/09
Category: Commercial Liability
Attaches To: Form 125
Download ACORD 126 Form
Free fillable PDF – Current edition
What is ACORD 126?
ACORD 126 is the standardized Commercial General Liability (CGL) Section supplement used by insurance agents, brokers, and underwriters to gather the detailed information needed to quote, underwrite, and bind commercial general liability coverage. It does not stand alone — this supplement always attaches to the ACORD 125 Commercial Insurance Application, which captures the insured’s basic business profile.
Published by ACORD (Association for Cooperative Operations Research and Development), the current edition is (2016/09). This form provides a consistent, carrier-agnostic format so underwriters at any insurance company can evaluate the risk using the same data structure. Whether a business is a sole proprietor or a large corporation, the form captures all the CGL-specific information that affects pricing and coverage decisions.
What the Form Covers
Workers compensation exists because of the “grand bargain” between employers and employees:
📋 CGL Coverages & Limits
Records the specific coverage type (Occurrence or Claims Made), all policy limits including General Aggregate, Products & Completed Operations Aggregate, Each Occurrence, and Medical Expense.
🏗️ Schedule of Hazards
Identifies each business operation location, classification code, premium basis, exposure, and territory — the foundation of CGL premium calculation.
⚖️ Claims Made Provisions
Documents retroactive dates, entry into claims-made coverage, and whether tail coverage was purchased under previous policies.
👥 Employee Benefits Liability
Captures deductible per claim, number of employees, number covered under employee benefits plans, and retroactive date for this optional coverage.
🔨 Contractors Information
Addresses subcontractor use, certificates of insurance, excavation or blasting operations, and equipment leasing — critical risk factors for contractors.
📦 Products / Completed Operations
Details product characteristics, annual gross sales, market distribution, warranties, recalled products, and foreign product exposure.
The CGL Section in the Commercial Insurance Process
- Business Decision to Seek CGL Coverage: Agent begins application process
- ACORD 125 Completed: Basic business information captured
- CGL Section Attached: CGL-specific details documented on this form
- Submission to Underwriters: Both forms sent to one or more carriers
- Underwriting Review: Carrier evaluates hazards, limits, and exposures from the submission
- Quote Issued: Premium calculated based largely on Schedule of Hazards data
- Policy Bound: Coverage begins; ACORD 25 certificate can be issued
⚠️ ACORD 126 vs. ACORD 125 — Know the Difference
ACORD 125 = Commercial Insurance Application (business name, address, nature of business, loss history, prior carrier info — the “Who are you?”)
ACORD 126 = Commercial General Liability Section (CGL coverages, limits, hazard classifications, claims-made details — the “What CGL coverage do you need?”)
Important: The form is never submitted without ACORD 125. Other supplements like ACORD 130 (Workers Compensation) or ACORD 137 (Business Auto) may also attach to the same ACORD 125 package.
When You Need ACORD 126
Any commercial business applying for general liability insurance will require this CGL section as part of the submission package. Understanding the specific situations where this form is mandatory — and where it adds value even if technically optional — helps agents and business owners prepare accurate submissions.
Situations Requiring This Form
🏢 New CGL Policy Application
Any business applying for a new commercial general liability policy must complete the CGL section as the supplement to ACORD 125. No carrier will quote without it.
🔄 Policy Renewal with Changes
When renewing a CGL policy with changes to operations, locations, limits, or coverage structure. Carriers require a fresh submission to reflect updated exposure.
🏗️ Contractor Bids & Projects
Contractors bidding on construction projects often need to submit this documentation to general contractors or project owners proving the basis for their CGL coverage.
🔁 Carrier Transfer
Moving CGL coverage from one carrier to another mid-term or at renewal. The new carrier requires a current submission to evaluate and underwrite the risk independently.
📈 Business Expansion
Adding new locations, operations, or product lines that change the risk profile. An updated form captures expanded hazard classifications and exposures.
💼 Endorsement Changes
Requesting material changes to an existing CGL policy — additional insureds, limit increases, or coverage endorsements — often requires updated form information.
Types of Businesses That Use This Form
The form is used across virtually every industry. Common applicants include:
- General Contractors & Subcontractors — high-use; extensive Contractors Section required
- Retailers & Wholesalers — Products/Completed Operations section critical
- Manufacturers — detailed product information, warranties, and recall history needed
- Restaurants & Hospitality — premises/operations focus; liquor liability endorsements may be added
- Professional Service Firms — may add Employee Benefits Liability coverage
- Property Owners & Landlords — premises/operations classification dominant
- Non-Profit Organizations — athletic team sponsorships and event sponsorships particularly relevant
Coverages & Limits Section of ACORD 126
The Coverages & Limits section is the most critical part of the application because it defines what protection the business is buying and at what amounts. Every limit recorded here becomes a binding term of the policy if coverage is bound.
Coverage Type Selection
📅 Occurrence Coverage
Covers bodily injury or property damage that occurs during the policy period, regardless of when the claim is filed. The most common CGL coverage type for most businesses. Check Occurrence on the form.
Best for: Most premises/operations, products liability, completed operations risks
📋 Claims Made Coverage
Covers claims that are first made during the policy period, provided the occurrence happened on or after the retroactive date. Requires special attention to the Claims Made section.
Best for: Employee benefits liability, some professional exposures, pollution liability
CGL Policy Limits — What Each Means
|
Limit Type |
What It Covers |
Typical Amounts |
|---|---|---|
|
General Aggregate |
Maximum the policy pays for all covered claims during the policy period (except products/completed ops) |
$1M, $2M, $3M |
|
Products & Completed Operations Aggregate |
Maximum paid for all products and completed work claims combined during the policy period |
$1M, $2M |
|
Personal & Advertising Injury |
Libel, slander, copyright infringement, false arrest, wrongful eviction |
$1M per occurrence |
|
Each Occurrence |
Maximum paid for any single occurrence or accident |
$1M, $2M |
|
Damage to Rented Premises |
Covers fire damage to premises the insured rents |
$50K, $100K, $300K |
|
Medical Expense |
Medical payments to injured persons (no-fault, any one person) |
$5K, $10K |
|
Employee Benefits |
Liability for errors in administering employee benefit programs |
$1M per claim |
Limit Applies Per — Policy, Location, or Project
The “Limit Applies Per” field controls how aggregates reset. This is especially important for contractors:
- Policy: Aggregate applies across all operations for the entire policy period (standard)
- Location: Separate aggregate applies per each location — useful for businesses at multiple sites
- Project: Separate aggregate per construction project — common for large contractors
- Other: Custom arrangement as defined by endorsement
✅ Pro Tip: Wisconsin UM/UIM and Medical Payments
Commercial General Liability Section includes a specific notation for Wisconsin applicants: “If non-owned only auto coverage is to be provided under the policy,” the form requires disclosure of whether UM/UIM coverage and Medical Payments coverage are available. Wisconsin agents must address these checkboxes on every submission.
Schedule of Hazards — The Premium Foundation
The Schedule of Hazards is arguably the most technically complex section of this form because it forms the direct basis for premium calculation. Every business operation must be classified into ISO hazard categories, and errors here lead directly to incorrect premiums — either overcharging the insured or leaving the carrier inadequately rated for the actual risk.
Coverage Type Selection
📅 Occurrence Coverage
Covers bodily injury or property damage that occurs during the policy period, regardless of when the claim is filed. The most common CGL coverage type for most businesses. Check Occurrence on the form.
Best for: Most premises/operations, products liability, completed operations risks
📋 Claims Made Coverage
Covers claims that are first made during the policy period, provided the occurrence happened on or after the retroactive date. Requires special attention to the Claims Made section.
Best for: Employee benefits liability, some professional exposures, pollution liability
Schedule of Hazards Fields
|
Field |
Description |
Notes |
|---|---|---|
|
LOC # |
Location Number |
Matches location numbers from ACORD 125. Each physical location gets its own line. |
|
HAZ # |
Hazard Number |
Sequential number for each hazard at a location. One location can have multiple hazards. |
|
CLASS CODE |
ISO Classification Code |
4-5 digit ISO code identifying the specific business operation type. Must be exact. |
|
PREMIUM BASIS |
How exposure is measured |
See rating basis codes below. Determines how exposure figure is interpreted. |
|
EXPOSURE |
Measurable risk volume |
Dollar amount of payroll, sales, or cost; or square footage, units, or admissions |
|
TERR |
Territory |
Geographic rating territory code. Varies by carrier and state. |
|
RATE (Prem/Ops) |
Premises/Operations Rate |
Rate per unit of exposure for premises and operations liability |
|
RATE (Products) |
Products Rate |
Separate rate per exposure unit for products and completed operations |
|
PREMIUM (Prem/Ops) |
Calculated Prem/Ops Premium |
Exposure × Rate for premises/operations |
|
PREMIUM (Products) |
Calculated Products Premium |
Exposure × Rate for products/completed operations |
|
CLASSIFICATION DESCRIPTION |
Written description of the operation |
Plain-language description of what the business does at this location/hazard |
Rating and Premium Basis Codes
The form uses standardized codes to identify how each hazard’s exposure is measured:
- (S) Gross Sales: Per $1,000 of gross sales. Most common for retail, wholesale, and products risks.
- (P) Payroll: Per $1,000 of payroll. Common for contractors, service businesses, manufacturing.
- (A) Area: Per 1,000 square feet. Used for buildings, warehouses, vacant properties.
- (C) Total Cost: Per $1,000 of total project cost. Standard for construction and contracting operations.
- (M) Admissions: Per 1,000 admissions. Used for amusement parks, theaters, sporting venues.
- (U) Unit: Per unit (vehicle, apartment, condo). Common for auto dealers, apartment complexes.
Claims Made Coverage — ACORD 126 Requirements
When Claims Made is checked as the coverage type, the Claims Made section on page one becomes mandatory. This section carries significant underwriting and legal importance because it establishes the scope of prior acts coverage and documents the policy’s relationship to any previous claims-made policies.
⚠️ IMPORTANT — Claims Made Applications
ACORD 126 states directly: “If CLAIMS MADE is checked in the COVERAGE/LIMITS section, this is an application for a claims-made policy. Read all provisions of the policy carefully.” Business owners must understand that a claims-made policy only covers claims reported during the policy period — not just incidents that occur during it.
Claims Made Section Fields — All Four Questions
|
# |
Field |
What It Means & Why It Matters |
|---|---|---|
|
1 |
Proposed Retroactive Date |
The date before which no claims will be covered, even if reported during the policy period. Earlier retroactive dates = broader coverage = higher premium. Often matches the date the insured first obtained claims-made CGL coverage. |
|
2 |
Entry Date into Uninterrupted Claims Made Coverage |
The date the insured first obtained a claims-made CGL policy without any break in coverage. Used to establish how long the insured has maintained continuous claims-made coverage — critical for carrier underwriting decisions. |
|
3 |
Has any product, work, accident, or location been excluded, uninsured or self-insured from any previous coverage? |
Y/N with explanation required if Yes. Identifies prior coverage gaps that could expose the new carrier to unintended prior acts claims. Any “Yes” answer must be thoroughly explained in the remarks section. |
|
4 |
Was tail coverage purchased under any previous policy? |
Y/N with explanation required if Yes. Tail (extended reporting period) coverage purchased on prior policies affects the timeline of potential claims exposure. Carriers need this information to understand the full claims history picture. |
Retroactive Date — Critical Underwriting Factor
The retroactive date on Commercial General Liability form is one of the most financially significant fields in the entire form. A full prior acts retroactive date (same as the policy inception date the first year claims-made coverage was obtained) provides the broadest coverage. A limited retroactive date leaves prior incidents uninsured. Agents should:
- Verify the proposed retroactive date matches any prior carrier’s retroactive date
- Confirm the date with the insured’s prior declarations page before completing ACORD 126
- Explain the implications of a restricted retroactive date to the insured in writing
- Never leave this field blank on a Claims Made submission
How to Complete the ACORD 125 Application
Completing the Fillable ACORD 126 accurately requires gathering information from the insured before sitting down to fill out the form. The following step-by-step process walks agents and business owners through the entire form from start to signature.
Step 1: Gather Required Information in Advance
Before filling out the form, collect the following from the insured:
- Current declarations page (for renewals or transfers) for retroactive dates and prior limits
- Complete list of all business locations with addresses
- Payroll figures by job classification (for contractors using payroll basis)
- Gross sales by product line (for product-heavy businesses)
- Total cost of subcontracted work and dollars paid to subs annually
- List of all products manufactured, sold, or distributed with annual sales per product
- Number of employees total and number enrolled in benefits programs
- Five-year loss runs from current and prior carriers
Step 2: Complete Page 1 — Header and Coverages
- Enter agency name, carrier name, NAIC code, and effective date in header fields
- Enter the applicant’s exact legal name in the First Named Insured field
- Check Occurrence OR Claims Made in the CGL coverage type section (never both)
- Enter all requested policy limits in the Coverages/Limits table
- Select “Limit Applies Per” — Policy, Location, or Project as appropriate
- Enter deductibles for Property Damage and Bodily Injury if applicable
- Note any other coverages, restrictions, or endorsements in the designated field
Step 3: Complete the Schedule of Hazards
- Assign location numbers matching ACORD 125 location numbering
- Assign hazard numbers sequentially within each location
- Enter the correct ISO class code for each operation — consult ISO manual or carrier guidelines
- Select the appropriate premium basis code (S, P, A, C, M, or U)
- Enter the exposure amount in the correct unit for the selected basis
- Enter territory code for each hazard
- If more than three hazards exist, note “ACORD 211 Attached” and continue on that form
Step 4: Complete Claims Made Section (If Applicable)
- Only complete this section if Claims Made was checked in Step 2
- Enter the proposed retroactive date — verify against prior carrier’s policy
- Enter the date the insured first entered uninterrupted claims-made coverage
- Answer questions 3 and 4 truthfully; explain all “Yes” answers fully
Step 5: Complete Employee Benefits Liability (If Adding EBL)
- Enter deductible per claim amount
- Enter total number of employees
- Enter number of employees covered by employee benefits plans
- Enter EBL retroactive date (EBL is almost always claims-made basis)
Step 6: Complete Contractors Section (If Applicable)
- Answer all six Yes/No questions honestly
- Provide full explanation for every “Yes” response
- Enter full-time staff count, part-time staff count, percentage of work subcontracted
- Enter total dollars paid to subcontractors annually
- Describe the types of work subcontracted in detail
Step 7: Complete Products / Completed Operations (If Applicable)
- Describe principal product components, intended use, and expected market
- Enter annual gross sales, units, and product life expectancy
- Answer all ten Yes/No questions for each product category
- Attach ACORD 815 if foreign products are involved (Question 2 = Yes)
- Attach product literature, brochures, labels, and warning statements as noted on the form
Step 8: Complete General Information (Pages 3–4)
- Answer all Yes/No questions on pages 3 and 4 in order
- Provide complete explanations for every “Yes” response
- Complete the Equipment section if applicable
- Complete Athletic Sponsorship details if applicable
- Use the Remarks section (or attach ACORD 101) for any additional explanations
Step 9: Review and Sign
- Review all four pages for completeness
- Verify First Named Insured matches ACORD 125 exactly
- Confirm all “Yes” responses have explanations attached
- Have applicant’s authorized representative sign page 4
- Producer signs and enters license number and NPN (if required in state)
- Attach completed ACORD 126 to ACORD 125 and all other applicable supplements
Download ACORD 126 PDF Form
Complete your commercial general liability application with ease using this fillable ACORD 126 form
Frequently Asked Questions
Can this form be submitted without ACORD 125?
No. The CGL section is explicitly designed to “Attach to ACORD 125” as printed at the bottom of every page. ACORD 125 provides the business profile, loss history, and general applicant information that the supplement relies on. Submitting it alone will result in rejection by every carrier.
How many hazards can be listed on ACORD 126?
The main form provides three hazard rows. When more space is needed, ACORD 211 (Schedule of Hazards) is attached as a continuation sheet. There is no practical limit to the number of hazards — use as many ACORD 211 pages as needed.
Is the CGL section required for every general liability policy?
Yes, for all standard commercial market submissions. While some carriers have proprietary application forms, the vast majority of admitted and surplus lines carriers accept or require ACORD 126 as the industry-standard CGL supplement.
What edition should I use?
The current edition is ACORD 126 (2016/09). Most carriers accept the 2016 edition. A small number of older carrier systems may still process the prior edition. When in doubt, use the 2016/09 edition as it is the most universally accepted.
When does Owner’s and Contractor’s Protective (OCP) coverage apply?
OCP coverage protects a project owner or general contractor from liability arising from the operations of independent contractors. It is a separate policy — not an endorsement — typically required by project owners on major construction projects. When OCP is selected, it is underwritten separately with its own limits for that specific project.
What happens if we understate payroll on the application?
CGL policies with payroll-based exposure ratings are subject to annual premium audit. If actual payroll exceeds the estimated payroll reported at application, the insured will owe additional premium at audit. Consistent understatement can be considered misrepresentation and may give the carrier grounds to cancel or void coverage.
What if my business has multiple different operations?
List each operation separately in the Schedule of Hazards section. Each gets its own class code, exposure base, and rate. For example, retail sales, installation services, and rental operations would each be listed separately under different classifications.
Do I need the CGL section if I’m only getting property insurance?
No. The ACORD 126 Commercial General Liability Section only applies when purchasing CGL coverage. If you are buying property insurance only, you would complete the Property Section (ACORD 140) but not this supplement.