For small and mid-sized businesses, navigating the complexities of insurance can be challenging. Ensuring the right coverage is in place is not just about compliance—it’s about protecting assets, employees, and long-term business stability. The ACORD 160 form plays a vital role in this process, helping insurers and business owners streamline coverage selection and risk assessment.
Whether a business is applying for new insurance or updating an existing policy, having a clear and accurate application can make all the difference in securing the right protection. In this article, we’ll explore what ACORD 160 is, the essential details it captures, and how it simplifies the insurance process for businesses.
What Is ACORD 160?
ACORD 160 is a commercial insurance form designed to facilitate the application and underwriting process for Business Owner’s Policies (BOPs). A BOP is a bundled insurance package that typically includes property insurance, general liability coverage, and business interruption insurance—providing small businesses with comprehensive protection in a single policy.
This form collects important details about a business, including its industry, physical location, assets, and risk factors. Insurers use this information to evaluate coverage eligibility, determine policy limits, and calculate premiums. Given that the global small and medium-sized enterprise (SME) insurance market is projected to grow from $22.8 billion in 2023 to $39.35 billion by 2032, at a compound annual growth rate (CAGR) of 6.25%, accurate documentation, such as ACORD 160, remains essential for risk management and underwriting efficiency.
Key Information on ACORD 160
The ACORD 160 form includes several key sections that help insurers assess a business’s risk profile. These include:
Business Information
This section captures general business details such as legal name, address, industry classification, and business operations. These details help insurers determine the type of risks the business is exposed to.
Property Coverage Details
ACORD 160 requires information about the business’s physical assets, including buildings, equipment, and inventory. The form also gathers data on property protection measures such as fire alarms, sprinkler systems, and security systems.
Liability Coverage Requirements
Since a BOP includes general liability insurance, this section outlines potential risks associated with customer interactions, product sales, and on-site operations. Businesses must disclose any liability exposures that could impact coverage terms.
Business Interruption Coverage
BOPs typically include business interruption insurance, which helps cover lost income and operating expenses in case of a covered event like fire, theft, or natural disasters. This section details estimated revenue, payroll, and other financial data insurers use to calculate appropriate coverage limits.
Crime and Cyber Liability Protection
Some BOPs offer optional coverage for crimes such as employee theft, fraud, or forgery. Businesses may also request cyber liability coverage to protect against data breaches and cyberattacks. ACORD 160 allows businesses to specify these needs if applicable.
Loss History and Claims Record
Insurers assess risk by reviewing a business’s claims history. The ACORD 160 form collects data on past losses, allowing underwriters to determine if a business qualifies for a BOP or requires additional coverage.
By providing complete and accurate information on ACORD 160, businesses can ensure they secure the right coverage while avoiding potential gaps or underwriting complications.
When Is ACORD 160 Used?
ACORD 160 is an essential form that businesses use in various key situations to secure or adjust their Business Owner’s Policy (BOP). This form is typically completed when businesses need to:
- Apply for a new Business Owner’s Policy
- Renew or update existing BOP coverage
- Expand operations and require higher policy limits
- Provide proof of insurance to landlords, lenders, or business partners
By accurately completing ACORD 160, businesses can ensure that their BOP meets their evolving needs and complies with contractual or regulatory insurance requirements.
Considerations for ACORD 160
Before completing the ACORD 160 form, businesses should carefully consider the following factors to ensure accurate and effective coverage:
- Ensure accurate business classification to avoid incorrect coverage terms
- Disclose all property and liability risks to prevent coverage gaps
- Maintain an up-to-date claims history to ensure smooth underwriting
- Review policy limits and exclusions to confirm they meet business needs
Taking these steps will help businesses secure comprehensive coverage while minimizing the risk of disputes or coverage issues during the policy term.
Conclusion
ACORD 160 plays a pivotal role in securing the right Business Owner’s Policy (BOP) by helping insurers assess risks and provide businesses with comprehensive protection. By filling out this form accurately, businesses can ensure they have the right coverage in place for property, liability, and business interruption.
At CLICKVISION, we understand how crucial it is to streamline the documentation and underwriting process. Our insurance back office solutions can assist with efficiently managing ACORD 160 and other essential forms, ensuring accurate completion and allowing insurance professionals to focus on what truly matters—serving their clients and growing their business.
With a strong background in the marketing industry and healthcare leadership roles, Filip is responsible for CLICKVISIONBPO’s sales strategies and onboarding new clients. With a passion for sharing insights gained from his experience, he also shares valuable knowledge through industry related articles.