The nonprofit organization ACORD is most well-known for its insurance documents. Essentially, a group of industry professionals got together in the 70s and decided that there needed to be more standardization, so they created a set of documents that covered necessary details and adhered to industry guidelines.
These documents are typically known as ACORD forms, and they’re usually a certificate of insurance services (COIs), documents that certify that someone has insurance coverage. The most common of these standardized forms is ACORD 25: Certificate of Liability Insurance.
In this blog, we’ll cover more about ACORD 25 forms, including how to read them. Let’s get started.
What Is an ACORD Form Used for?
As we mentioned, there are various kinds of ACORD forms. This is because there are many different insurance policies to provide evidence of, and each should have a different corresponding insurance certificate template to work off of. ACORD certificates of insurance are typically used in business transactions by parties that need to prove their insurance to one another.
Some purposes that ACORD forms can serve include:
- (Most commonly) Providing proof of insurance
- Allowing for easy insurance information exchange
- Streamlining the process of applying for insurance coverage
- Assisting in detail gathering for claims reporting
What Is an ACORD 25 Form?
An ACORD 25 form is a kind of ACORD form that provides proof of general liability insurance coverage. It is a certificate of insurance document that corresponds with a general liability policy, also often called the certificate of liability insurance. It’s one of the most common COI insurance and a standard ACORD template. You can find an ACORD 25 example form on ACORD’s website.
What Is the Most Current ACORD 25 Form?
To find the most current and up-to-date ACORD 25 form, you should rely on the creator of the forms themselves, ACORD. Head to their website and find the forms portal. There, you should be able to find the latest version of the ACORD 25 form (as of this blog’s publishing, that is the 2016 ACORD 25 PDF/template). Note that the examples on the ACORD website are standard industry examples, but to fill one out, you will have to work with your insurance provider.
How Do You Read ACORD 25?
Certificates of insurance are usually fairly easy to read. Understanding the different sections is important, and they all work together to provide information about a general liability policy. Here are the different sections included in an ACORD 25 form:
- Insured information: Contact information for the policyholder (the person receiving coverage).
- Certificate holder information: Contact information for the certificate holder (in the case that you’re reading this form because you requested it from the policyholder, that’s you).
- Description of operations: This gives some context for the policyholder’s business dealings.
- Policy information: This will include the policy number, effective dates of coverage, and expiration date so you know when the policy begins and is set to expire.
- Coverage details: This section outlines information such as coverage types, limits, and amounts.
- Additional insured (if applicable): Here, the policyholder could decide to list another party (such as yourself, the certificate holder) for their policy to cover.
- Cancellation notice: This explains the condition under which a policy can be canceled and the notice period required for doing so.
- Authorized representative: This will be the insurance agent certifying the form.
If you’re not sure about any of the information you receive on an ACORD 25 COI from someone, don’t hesitate to reach out to them or their insurance provider in order to clarify.
How to Fill Out ACORD 25 Instructions
Generally, if you’re filling out an ACORD 25 form, it’ll be with the help of your insurance provider, who is the only entity able to certify a valid COI certification. However, we can recommend following these ACORD 25 instructions for best results:
- Insured information: Provide the name, address, and contact information of the policyholder (in the case that you’re filling this out, that’s you).
- Certificate holder information: Provide the name and address of the requesting party.
- Description of operations: Give a brief description of the policyholder’s operations or locations covered by the policy.
- Policy information: Fill in the policy number, as well as the effective date and expiration date of coverage.
- Coverage details: Denote the specific type of coverage included (general liability) and its policy limits.
- Additional insured (if applicable): List any parties that you’ve added to your coverage.
- Cancellation notice: Indicate the notice period required for policy cancellation as laid out by your insurer or requesting party.
- Authorized representative: Your insurer will sign and date the form as its authorized representative.
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