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Automated forms processing for Acord 126 is being chosen as the preferred method for filing insurance claims. Acord 126 form, more commonly known as the Commercial General Liability Section is used to record client information such as insured’s exposure, loss history and other business operations details. An increased interest in AI-powered document processing has been shown by insurance companies and it is estimated that over 25% of insurance applications processing will be automated by 2025. With intelligent data capture solutions, businesses are aggregating information and saving time when entering information into database.
What is Acord 126?
Acord 126, also referred to as a Commercial General Liability Insurance Policy, is a document drafted to collect, verify, and update verify information about liability policies during the underwriting process of insurances in organizations.
The Acord 126 is combined with the Acord 125 before it is forwarded to the carrier for getting a quote on insurance. Most brokers fill up this form on the behalf of their clients and it is a document that is crucial since it explains what a business is entitled to from an exposure and coverage standpoint.
Importance of Acord 126
The Acord 126 is required by organizations to make sure they’re covered against various business liabilities like environmental hazards, employee accidents, theft, and property damages. This commercial general liability insurance policy is used for filing claims and recovering losses faced by businesses.
1. Legal Liability
Acord 126 is now becoming mandatory for organizations that offer multiple products and services. Many vendors get involved and request this form as a sign of legal assurance and reliability.
2. Protects Owners and Employees
Acord 126 covers both owners and employees, making sure to protect their interests. These forms are made to safeguard parties from various liabilities that occur when conducting business operations.
3. Resolution of Disputes and Filing Claims
Businesses can lose up to billions of dollars and get reputational hazards when they don’t file their insurance claims in time. Acord 126 is used for settling disputes related to the breach of legal liabilities and is used for peaceful closures.
How to read Acord 126
Acord 126 is a commercial general liability form which is read and filled up section by section.
In general, you have to pay attention to these major sections while entering the details:
· Coverages and Limits
· Schedule of Hazards
· Claims Made
· Employee Benefits Liability
· Products and Completed Operations
· Additional Interest and Certificate Recipient
· General Information
The coverages and limits section will outline the policy limits of your commercial general liability insurance. Schedule of Hazards is used for classifying your business operations based on the ratings of the insurance policy. If you are going for occurrence-based insurance policy, you can skip the Claims made section or else fill it up.
If you’re planning to add employees as add-ons to your insurance policy, the employee benefits liability section has to be covered as well. Contractors have their own set of rules when it comes to renewing insurance policies and the next section is left to them.
Products and Completed Operations describes your business operations, including listing any vendors you’re working with, what products you offer, and what controls are in place. You can add only one additional insured in the Additional Interest and Certificate Recipient section. For companies who have more than one additional insured, they need to fill up Acord 45 as a supplemental form.
Finally, the remarks section is where your broker will enter additional details about your company and insurance policy. The form gets completed when authorized entities sign the form and submit for approval to agencies.
How to automate Acord 126 Processing
Acord 126 processing is done by companies via the use of automated data extraction software these days. Intelligent OCR and Machine learning algorithms in these programs interpret information in these forms intelligently and extract them. The data is cleaned up, structured, and entered into AMS systems for a review by agencies.
The whole process takes merely minutes as pre-trained APIs use the appropriate data types for filling up these forms. Additionally, any discrepancies and errors are removed since the data gets validated using past data models which contained historical entries.
Digitizing Acord 126 forms entails numerous benefits when using automation workflows and they are:
1. Improved Productivity and Efficiency
No time gets wasted manually entering data when using automated data extraction platforms like Docsumo. It is a matter of just scanning the form and letting the software do the rest
2. Zero errors
The margin for mistakes is minimal since there’s no human intervention when reading and interpreting data. Acord 126 forms processing has a 99% accuracy rate with Docsumo which is considered the industry standard
3. Wide variety of formats
Whether you want to convert your Acord 126 forms to Excel, PDF, JSON, or image file formats, the software lets you do that with ease. Users can import and export Acord 126 data according to their file formatting preferences, thus making data transfer and migration between systems flexible
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