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Acord 127 records details of all the drivers, vehicles, and rental/lease details a business employs. While the Acord 127 standardizes the format of data entry for business auto insurance, the exercise of digitizing the paper form still remains a manual responsibility. Not surprisingly, the Insurtech industry is on a boom recently and offers endless automation solutions to insurers and agencies to streamline their operations. 70-80% automation is possible for processes that run on rules – which holds true for Acord forms since they are not only structured but also standardized to be compatible across regions.
What is Acord 127?
The Acord 127, also known as Business Auto Section, is an insurance document that covers policy information of commercial vehicles of a client, including but not limited to lists of drivers, operating hours of the business, vehicle use schedules, etc.
The nature of insurance coverage required by commercial vehicles is different from personal vehicles. Business auto insurance covers a wide range of scenarios and legal aspects that personal vehicle insurance cannot cater to.
Importance of Acord 127
Through Acord 127, a business can cover all its vehicles - whether passenger cars, freighters, buses, or any other - with suitable insurance and liability limits.
1. Law compliance
By insuring your business automobiles through Acord 127 forms, you ensure compliance of your business with state or local laws.
2. Broad legal security
Acord 127 accounts for a wide range of vehicles, such as trucks, buses, cars, trailers, small and big haulers, etc., giving you a wide umbrella of security against damages and the complex legal issues corresponding to vehicle type.
3. Wider coverage
Business auto insurance can be expanded to cover vehicles, drivers, and possibly the equipment carried by the vehicle as well through Acord 127.
How To Read Acord 127
Acord 127 is generally a four-page document. The top of the first page shows details of the insurance agency, the date of the policy, the customer ID, policy number, the person in whose name the policy is issued, and other general details. The form goes on to seek the following details from the client:
1. Driver details
Acord 127 requires clients to fill out driver details such as name, driver's license number and where it was issued, which vehicles he drives and for how long, which state he belongs to, date of hire, years of experience, etc. The form only allows entry up to 13 nos - if additional fields are needed, you’d need to fill up Acord form 163.
2. General vehicle information
For the vehicles your company seeks insurance for, Acord 127 requires information on whether they are solely owned, co-owned, or hired; lease information; whether any modification was done to suit the nature of work; whether transport of hazardous materials is involved and other such questions.
3. Additional interests
The third important field of Acord 127 is a list of third parties who hold interest in the insurance of the vehicle in question. The form allows naming two parties, after that you need to fill out Acord 45 for additional names.
4. Vehicle description
This page of Acord 127 records the detailed description of the vehicle being insured.
How To Automate Acord 127 Processing
All forms eventually end up in the digital space. Automating the data capture process helps to reduce not just the time required by operations, but also the manual labor and man-hours employed to do these tasks.
With intelligent OCR data extraction technology, Docsumo makes it super easy to capture data from Acord 127. Multiple learning algorithms and smart filters in the software ensure that no important data on any Acord 127 is missed or left out. Lightning-fast data upload and download tools make it a breeze to transfer information between media.
The software also facilitates editing and cross-checking entries using its flagging functions that detect problems during scanning, and allow the user to make required corrections. It also comes equipped with Advanced Deep Learning which enables it to validate data corresponding to its field properties. If an issue is found, the user is immediately notified.
Benefits of Automation
By allowing software to handle these clerical tasks, you are giving your organization the benefit of:
- Smooth data extraction & fully automated - Achieve accuracies up to 99% through using automation software for Acord 127 data extraction.
- Deal in bulk volumes in less time - Upload, classify, verify, validate and download Acord 127 form data in bulk.
- Faster processing speeds - Automation software is equipped to intelligently process data faster through intelligent learning algorithms.
- Analytics - See your operations and processes reflected in meaningful numbers.