The ACORD 132 Contractors Supplemental Application is attached to the ACORD 125 and 126 when submitting contractors accounts to markets that require additional underwriting detail. Contractor accounts are among the most complex to underwrite in commercial lines — the nature of work, subcontractor use, and job types all significantly affect risk. The ACORD 132 collects the detailed information that standard ACORD forms do not have space to capture.
The ACORD 132 is used for most contractors accounts: • General contractors who manage projects and hire subcontractors • Specialty contractors (electrical, plumbing, HVAC, roofing, etc.) • Landscaping and grounds maintenance contractors • Painting and coating contractors • Demolition contractors • Excavation and grading contractors • Any contractor submitting to a market that requires the supplemental
The most critical section of any contractor submission is subcontractor use. Underwriters want to know:
• What percentage of work is subcontracted (vs. performed by employees) • Whether subcontractors are required to carry their own liability insurance • Whether the insured collects certificates of insurance from all subcontractors • What limits subcontractors are required to carry • Whether the insured requires subcontractors to name them as additional insured
If a subcontractor causes a loss and the insured cannot recover from the subcontractor's policy (because the sub was uninsured or underinsured), the insured's GL policy may be left to pay. Underwriters price subcontractor exposure based on how well the insured manages it.
Contractors coverage is classified by the type of work performed. Different types of work carry different risk levels and require different policy provisions:
New construction vs. renovation — renovation work on existing structures often carries higher risk than new construction because workers are in occupied buildings and existing structures may have hidden conditions.
Roofing work — one of the highest-risk contractor operations due to the frequency and severity of fall-related injuries and roof-related property damage claims.
Excavation and underground work — high risk due to utility strikes, cave-ins, and damage to underground property.
The ACORD 132 requires a breakdown of the insured's annual revenue by type of work performed.
Completed operations is the liability exposure that arises after a contractor finishes a job. If the work is defective and causes injury or damage after the contractor leaves the job site, the completed operations coverage responds.
Completed operations claims can occur years after work is completed. For roofing contractors, a roof that fails several years later can result in a large property damage claim. For general contractors, structural defects may not appear until well after project completion.
Underwriters want to know: • The typical size of projects • The warranty period offered • Prior completed operations claims • Whether the insured performs design work in addition to installation
Not collecting a complete breakdown of work by type — underwriters will assume the worst if work types are not specified
Understating the percentage of work that is subcontracted
Not confirming the subcontractor insurance requirement and certificate collection process
Missing the completed operations exposure for contractors who do installation or structural work
Not disclosing work done on high-rise buildings or other elevated structures
Send your client a plain-English intake link. When they finish, the completed ACORD 132 and all required companion forms are generated and ready to submit.