ACORD 127

Business Auto Section

The business auto supplement to the ACORD 125. Covers vehicle schedules, liability limits, physical damage, and hired/non-owned auto coverage.

What This Form Is For

The ACORD 127 is the business auto supplement that provides detailed vehicle, driver, and coverage information for commercial automobile policies. It works alongside the 125 master application to give underwriters a complete picture of the business's auto exposure.

This form covers the vehicle schedule (year, make, model, VIN), driver information and MVR status, requested coverage limits, physical damage options, and hired and non-owned auto needs. The vehicle type and use classification directly impact premium calculation.

For businesses with fleets, the 127 can be extensive. For service businesses with a few company vehicles or businesses that primarily use employee-owned cars for work, the hired and non-owned auto section is often the most relevant part of this form.

Section-by-Section Walkthrough

Fields That Matter Most to Underwriters

  • 1Vehicle types and use classifications — heavy trucks and long-haul routes carry higher risk
  • 2Driver MVR records — violations and at-fault accidents are primary rating factors
  • 3Radius of operation — long distance significantly increases exposure
  • 4Fleet size and composition — determines the overall premium volume
  • 5Hired and non-owned auto exposure — often underestimated by applicants

Common Mistakes

Incomplete vehicle schedule

All vehicles used in business operations need to be listed, including personal vehicles used for business purposes. Missing vehicles create coverage gaps and can lead to claim denials.

Missing or unlisted drivers

All authorized drivers must be listed on the application. An unlisted driver involved in an accident creates coverage disputes — especially if the driver has a poor MVR that would have affected underwriting.

Incorrect radius of operation

Understating the operating radius to reduce premium can result in a coverage defense if a claim occurs outside the reported radius. Report the actual maximum radius, not the typical radius.

Skipping hired and non-owned auto

Businesses without owned vehicles often skip this section, but if employees use personal cars for any work purpose, the business has non-owned auto exposure that needs coverage.

Related Forms

ACORD 125ACORD 131

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