(June 2020)
ACORD forms are designed to be used with products associated with standard insurance industry rating and forms organizations, such as the Insurance Services Office (ISO), for use with its coverage forms and policies, manuals, rules, and rating plans. One of them is the ISO Equipment Breakdown Protection Coverage Form. For the most part, ACORD forms are relatively generic. The Equipment Breakdown Protection Coverage Form may be written in combination with a specific independent specialty or company program. In that case, company specific forms may be needed for that account instead of (or in addition to) the usual ACORD forms that apply. That is because more information, detail, or in-depth hazard analysis is needed than what the corresponding ACORD form provides.
Note: Only countrywide forms are listed in this section. State specific ACORD forms are not listed.
Form 45–Additional Interests
This form helps identify, list, and describe additional parties that have an insurable interest in the covered property and equipment. The additional interest’s name and mailing address are coupled with identifying the specific type of interest involved and the nature of the interest, such as in a location or a specific item of machinery, equipment or other property. It can also be used to list mortgageholders and loss payees. This form may also be used as a risk management and additional interest inventory document.
Form 125–Commercial Insurance Application
All information is relevant and important. The appropriate boxes should be checked, so the insurance company underwriter understands the lines of insurance being submitted for consideration. Both the first named insured and all insureds must be listed in order for coverage to apply. Loss information on larger accounts should probably be submitted in the form of copies of currently valued loss runs for the past five years, as well as for the current year to date. The applicant information is important for notification purposes covering a number of disciplines, such as the inspection, financial, and premium audit functions.
The locations where coverage applies and the nature of each operation are extremely important items of underwriting information. The form contains general inquiries that help all parties understand the nature and extent of important issues that affect most risks.
Form 155–Equipment Breakdown Section 2002
The name has recently been changed from Boiler and Machinery to Equipment Breakdown, but the application has not changed. A separate application must be provided for each location or premises because the information requested is specific to each premises. The words INCLUDED and EXCLUDED may be used or specific limits provided when selecting coverages to apply. Any amount or other type of entry other than INCLUDED provided coverage but subject to the limit entered. These are not additional dollar amounts but instead are sublimits. Blank entries indicate that a given coverage is not desired.
Certain coverages are included in the coverage form for a default limit of $25,000, but higher limits are available. If a higher limit is needed, that amount must be entered even though these remain sublimits.
Business Income coverage is subject to coinsurance if the insurance company does not receive the required reporting form information within three months of the report date. The report date, annual value, and Business Income Coinsurance percentage must be entered when Business Income is selected.
No single application addresses every question that may arise for a given risk, especially larger and more complex risks. It is always in the best interest of both the named insured and the agent or broker to provide a cover letter that includes complete details of the operations and exposures involved. Such a letter is especially important if the risk has characteristics and features that cannot be brought to the attention of the insurance company in any other way.