ACORD Form GuideACORD 52

ACORD 52 — Businessowners Application

The ACORD 52 Businessowners Application is the standard form used to apply for a businessowners policy (BOP). A BOP is a package policy that combines commercial general liability, commercial property, and business income coverage into a single policy — designed specifically for small and mid-size businesses. The ACORD 52 collects all the information underwriters need to quote a BOP without requiring separate section attachments for each line of coverage.

When is ACORD 52 used?

The ACORD 52 is used for small to mid-size businesses that qualify for BOP coverage: • Retail stores and boutiques • Offices and professional services businesses • Small restaurants (some carriers) • Apartments and small commercial properties • Service businesses without significant contractors exposure • Technology and consulting firms • Most businesses with under $5M in revenue and standard operations

BOP vs. separate commercial lines policies

A BOP packages GL, property, and business income at a discounted combined rate — making it more economical than purchasing each coverage separately for small accounts.

However, BOPs have eligibility restrictions. They are designed for standard small businesses with limited operations. Businesses that don't qualify for BOP include:

• Contractors and construction firms • Auto dealers and repair shops • Bars and liquor establishments (many carriers) • Restaurants with significant operations • Professional offices requiring E&O coverage above low limits

For businesses that don't qualify for a BOP, the agent must build the program using ACORD 125 with individual section attachments (ACORD 126, 140, etc.).

Key information on the ACORD 52

The ACORD 52 consolidates what would otherwise require multiple ACORD forms:

GL information: operations description, revenue, payroll, number of employees, prior losses

Property information: building address, construction type, year built, square footage, occupancy, coverage amounts for building and business personal property

Business income: how long the business would take to resume operations after a covered loss — the basis for the business income limit

Liability limits: GL occurrence and aggregate limits, medical payments

Prior losses: 3 to 5 years of GL and property loss history

Business income — the most underinsured BOP coverage

Business income coverage (also called business interruption) replaces lost income and pays continuing expenses if the business is unable to operate after a covered property loss. It is included in most BOP policies.

The most common BOP error is selecting too short a restoration period. If a covered fire destroys a restaurant's kitchen, rebuilding, re-equipping, and reopening could take 12 to 18 months. A business income limit based on 3 months of income would leave the owner exposed for the remaining period.

Agents should have clients estimate the realistic time to restore operations — not just the time to repair the physical damage, but the time to restore full business operations.

Common ACORD 52 mistakes

Using a BOP for a business that doesn't qualify — the policy may not respond to claims if the operations don't match the BOP eligibility

Underestimating the business income limit and restoration period

Not asking whether the building is owned or leased — owned buildings require building coverage that tenant policies don't include

Selecting actual cash value when the insured would want replacement cost on business personal property

Not offering umbrella coverage on top of the BOP — the BOP's aggregate limits can be consumed quickly in a serious loss

Companion ACORD forms

ACORD 125
Commercial Insurance Application (for non-BOP accounts)
ACORD 126
Commercial GL Section
ACORD 140
Commercial Property Section
ACORD 131
Commercial Umbrella Section

AgencyAssist generates ACORD 52 automatically

Send your client a plain-English intake link. When they finish, the completed ACORD 52 and all required companion forms are generated and ready to submit.

See live demoStart free trial

Related

What is a BOP policy — complete guideCommercial insurance for retail storesCommercial insurance for restaurantsCommercial insurance glossary