Managing risk in insurance often requires adding specific parties to a policy for coverage or notification purposes. Businesses, lenders, landlords, and other stakeholders frequently need proof that they have an interest in an insurance policy, ensuring they are informed of any changes or cancellations.
This is where ACORD 45 – Additional Interest Schedule plays a key role. This standardized form is used to document additional insureds, lienholders, loss payees, or other interested parties on an insurance policy. Understanding how ACORD 45 functions can help policyholders and insurers maintain accurate records while meeting contractual or regulatory requirements.
What Is ACORD 45?
ACORD 45 is a standardized insurance form used to list additional parties that have an insurable interest in a policy. Whether for commercial or personal policies, this form ensures that entities such as lenders, landlords, or business partners are properly recorded in an insurance agreement.
Adding an additional interest is common in situations like mortgage agreements, equipment financing, and vehicle leasing, where third parties want to be notified about policy changes or cancellations. ACORD 45 is typically submitted alongside primary policy forms like ACORD 125 – Commercial Insurance Application or ACORD 127 – Business Auto Section to ensure all relevant stakeholders are covered.
Key Information on ACORD 45
This form captures essential details regarding additional interests in an insurance policy. Below are the critical sections included in the form:
Policyholder Information
Lists the name and contact details of the primary insured party to identify the policyholder associated with the additional interest.
Policy Details
Includes the insurance policy number, type of coverage (e.g., auto, property, liability), and the insurer providing the coverage.
Additional Interest Details
Identifies the name, address, and relationship of each additional interest (e.g., lienholder, mortgagee, additional insured, or loss payee).
Interest Type and Coverage Details
Specifies the nature of the additional interest, ensuring clarity on what rights or notifications the party is entitled to under the policy.
By documenting these details, ACORD 45 helps insurers, policyholders, and third parties maintain clear communication regarding policy terms and obligations.
When Is ACORD 45 Used?
Insurance professionals and policyholders use ACORD 45 in various scenarios, including:
- Lenders & mortgage companies – Mortgage lenders require this form to confirm their interest in a property’s insurance policy.
- Vehicle financing & leasing – Auto lenders or leasing companies use this form to ensure they are notified in case of policy cancellation.
- Landlords & property managers – Property owners often require tenants to include them as additional insureds on liability policies.
- Equipment leasing & financing – Companies leasing high-value equipment need to be listed as a loss payee to secure financial protection.
This form ensures that all relevant parties are properly documented, preventing disputes and ensuring compliance with contractual obligations.
Considerations for ACORD 45
Before completing the form, policyholders should keep these factors in mind:
- Accurate information – Ensure all details about additional interests are correct to avoid processing delays.
- Proper interest type selection – Clearly define whether the party is an additional insured, loss payee, mortgagee, or lienholder.
- Policy alignment – Ensure the primary policy provides the necessary coverage to meet additional interest requirements.
By addressing these considerations, policyholders can ensure that this form effectively serves its purpose in risk management and contractual compliance.
Conclusion
ACORD 45 is an essential form for documenting additional interests in an insurance policy. Whether for mortgage lenders, auto financiers, or landlords, this form ensures that all relevant parties are recorded and properly notified of policy changes. By correctly completing this form, businesses and individuals can protect their financial interests while complying with insurance requirements.
At the Back Office Hub, we help insurance agencies streamline operations by handling critical documentation like ACORD forms. From processing applications to managing additional interests, our insurance back office services reduce operational costs while improving efficiency. By outsourcing these tasks to us, agencies can focus on client relationships and business growth with confidence.
