Technological advancements have given rise to automated processing of insurance policies. Acord 125 forms are used by commercial businesses to protect and insure their assets. These forms are requested by clients to verify the integrity of businesses and ensure their credibility. By employing automated data extraction into systems, Acord 125 forms processing bring numerous benefits to companies such as reduced delays, increased efficiency, faster turnaround times, improved accuracy, and higher rates of satisfaction among clients.
What is Acord 125?
Acord 125, also referred to as a Commercial Insurance Document, and is used to insure businesses which service commercial packages to clients. These documents are required by the law to verify the integrity of businesses and secure them from legal threats.
Acord 125 is important for every company since it proves the status of insurance coverage and mentions what it protects against. It is sent by clients to insurance agencies in order to get a quote back about how much the insurance policy covers the business.
Importance of Acord 125
The Acord 125 is a crucial document required by clients and agencies to settle disputes, file insurance claims, and for providing proof of commercial insurance coverage. Commercial insurance policies are designed to protect businesses from reputational damages, loss of property, environmental hazards, and unforeseen external factors.
1. Helps with collaboration
Acord 125 forms are needed by agencies to collaborate with their clients. If companies are coming under an umbrella to provide services together and collaborate, these applications are a must to show proof of insurance coverage
2. Legal security
If your business intends to operate within the jurisdiction of the government or a private company, the forms will furnish information which establishes that the organization is genuine.
Onboarding new vendors becomes hassle-free when you have the Acord 125 forms ready.
3. Filing claims and settling disputes
Clients will file claims and raise disputes which are inevitable when providing commercial insurance policies. Acord 125 forms specify the duration of these policies and help in renewing them. Having these forms prepared can save businesses millions of dollars from false lawsuits as well.
How to read Acord 125
In the top right-hand corner, there are the underwriter details. This is the section which contains basic information provided by agencies such as the Policy Number, Program Name, Code, etc. Status of transaction has to be filled up when asking quotes from other carriers.
Four key areas of information are:
i) Policy Information
ii) Lines of Business Area
iii) Contact and General Information
iv) Prior carrier information
i) Policy information provides check-boxes for filling in the expiry date, billing plans, and method of payment. The audit box specifies how often insurance applications get audited (in most cases, it is annual)
ii) Other important parts of the document are the Lines of Business Area, Contact Information, and Premise Information. These will specify business details, secondary contacts, and their whereabouts.
iii) General Information has general questions with checkboxes that say a ‘Yes,’ or ‘No,’ for marking answers.
iv) Prior Carrier Information details outthe history of previous insurance claim filings and show a track record
How to automate Acord 125 processing
Every Acord 125 application has a specific framework which is required to be followed to gather and communicate key information to clients. Acord 125 processing is automated by using data capture solutions like Docsumo which uses a combination of intelligent OCR, smart filters, and batch uploading to scan and transfer information.
Pre-trained APIs are trained to capture key information from multiple Acord 125 forms. It updates itself and intelligently reviews it before processing. You can process any number of documents at once using them.
After the details get extracted, they are entered automatically into Excel spreadsheets in the form of JSON and XML file formats. There are presets which let users export data from these spreadsheets and forward to clients. If there are any anomalies detected while scanning, the document extraction APIs flag them and alert users for a manual review.
Benefits of automation
If you are a company with a long list of Acord 125 applications, using automation software can speed up your overall productivity and efficiency. Here’s how automated data extraction benefits users for processing Acord 125 applications:
A) Faster processing times
No delays and it takes minutes to extract data from files. Manual data entry is tedious and automated data processing takes care of this
B) 99% Accuracy
There is no margin for human error and details are fact-checked using intelligent data models
C) Variety of formats
Acord 125 forms can be converted to XML, JSON, PDF, PNG, and various file formats. Users can export and import data to and from systems according to their specifications
D) Data Organization and verification
Fields in Acord 125 forms are verified and not left blank. The software organizes the structure of the data in these forms automatically for users which makes reviewing them easy.
So, what are you waiting for? Book a free demo with Docsumo today and learn how Docsumo can help you process Acord 125 form fast!