The schedule of hazards is the rating table behind a commercial general liability policy. Each line ties one location to one classification and shows how that piece of the risk is priced:
- Location number (matching the locations on the application)
- Classification and class code, such as a contractor or retail store class
- Premium basis: what the rate is applied to, such as gross sales, payroll, square footage or units
- Exposure: the estimated amount of that basis for the policy term
- Rates and premium, often split between premises-operations and products-completed operations
On the ACORD 126 (commercial general liability section), this is the “Schedule of Hazards” block. Agency management systems such as AMS360 have a matching grid in the GL policy record. See our ACORD 126 guide.
How it shows up in an agency
A small manufacturer also sells its products online from a retail counter at the plant. The CSR lists two hazards: the manufacturing class rated on gross sales, and a retail class rated on the counter’s sales. If the application lumps all sales into one class, the carrier may misprice the risk, or at audit move sales into a higher-rated class and send a large additional premium bill.
Common confusion
- Exposures are estimates. Most GL premiums are auditable. The carrier compares the estimated exposure on the schedule with the actual figures after the term and adjusts premium. Underestimating sales to lower the deposit premium just moves the bill to audit.
- Class codes differ by line. GL class codes (often ISO-based) aren’t the same as workers comp class codes. See class code.
- It isn’t the property schedule. Property values by building go on a statement of values, not the hazard schedule.
Carriers’ GL appetites by class are on our general liability page.