What Is an ACORD 25 Certificate?

September 22, 2023
What Is an ACORD 25 Certificate?

The leading organization for developing standardized certificate of insurance forms is the nonprofit ACORD or the Association for Cooperative Operations Research and Development. ACORD publishes and maintains an extensive list of standardized forms to make it easier for everyone in the industry to work together.

As your business grows, you will probably start to accumulate multiple types of insurance policies and work with various business partners who you’d like to verify coverage for. To make sure that you’re prepared to do your due diligence when it comes to working with third parties and/or to meet the insurance certificate needs of your potential clients, you should gain an understanding of ACORD certificates.

No need to worry—myCOI has you covered. Here’s everything you need to know about the ACORD 25 certificate. 

What Is an ACORD 25 Insurance Form?

To start, we have to cover what a certificate of insurance services (COI) is. At its most basic, a COI is a document issued by an insurer that proves that a named insured has the coverage listed when the certificate was issued. ACORD sets the standards for what these COIs should look like and how they should be filled in. 

The ACORD liability insurance form (ACORD 25) is one of the most commonly used ACORD insurance certificates and serves as the standard COI for certifying general liability insurance. 

The Components of an ACORD 25 Certificate

At first glance, an ACORD 25 certificate may seem like just another form to fill out. However, each component plays a pivotal role in conveying critical information about your insurance coverage. Let’s break it down:

  • Named Insured’s Information: This section identifies the policyholder, offering immediate clarity on who is covered.
  • Description of Operations: A brief yet comprehensive overview of the insured’s operations, providing context for the coverage.
  • Key Policy Details: Here, you’ll find specifics about the insurance policy, including policy numbers, coverage types, and effective dates, offering a snapshot of the protection in place.
  • Limits of Liability: Essential for understanding the extent of coverage, this part outlines the maximum amount the insurer will pay under the policy terms.
  • Cancellation Notice: This crucial component ensures that certificate holders are notified if the policy is cancelled, providing an added layer of security for all parties involved.

Understanding these components can empower you to better utilize your ACORD 25 certificate, ensuring that your business’s coverage is accurately represented and understood.

Importance of ACORD 25 Certificates

Navigating the complex world of business insurance can be daunting, but understanding the value of an ACORD 25 certificate can simplify part of the process. This certificate serves as a crucial tool for businesses in various industries, offering a standardized and universally recognized document that verifies general liability insurance coverage. Its importance stretches beyond mere compliance; it fosters trust between parties, ensuring that businesses are protected against potential liabilities. By providing a clear snapshot of coverage details, the ACORD 25 certificate helps businesses meet legal and contractual requirements efficiently, making it an indispensable asset in risk management and business operations.

What Is the Most Current ACORD 25 Form?

The ACORD 25 form is widely recognized in the insurance industry and helps streamline the process of both providing and receiving evidence of insurance coverage. The most current ACORD 25 form is the last one that the organization uploaded, which as of this publishing, is the 2016 edition.

To access an example ACORD 25 form online (disclaimer: one should only do so for informational purposes, as legitimate COI Certification forms must be issued by a named insured’s insurance provider), you can head to the ACORD forms portal. Be wary of sources other than ACORD’s website, as anyone can upload a document online and label it ‘ACORD 25.’ 

The ACORD 25 certificate includes details such as the named insured’s information, a brief description of their operations, key details about the policy, limits of liability, a cancellation notice, and the certificate holder’s (requesting party’s) information.

What Is the Difference Between ACORD 25 and ACORD 28?

In contrast to ACORD 25, which is a Certificate Of Liability Insurance ACORD used to provide evidence of liability coverage, ACORD 28 deals with commercial property insurance, used to provide evidence of commercial property coverage. Both forms operate as standard insurance certificates, summarizing essential policy details such as information about the named insured, the certificate holder, and of course, the policy in question.

How Do I Get ACORD 25 Form?

In order to obtain an ACORD 25 form, you must go through a verified insurance provider, specifically, the one who is providing the insurance coverage you are looking to verify. 

Suppose you need an ACORD 25 form to prove your own liability insurance coverage to another party, such as a prospective client. In that case, you’ll simply work with your insurer online or in person, request a COI, and have them issue it to you. In this case, you’d be the named insured.

Suppose you need an ACORD 25 form to prove someone else’s liability insurance coverage, such as when hiring a contractor for a job. In that case, you’ll send them a certificate of insurance request laying out your requirements, and they’ll return the form to you shortly after going through the above process. In this case, you’d be the certificate holder.

What Is the Standard ACORD Certificate of Insurance?

While there are many ACORD certificates of insurance for a host of different insurance policies, the ACORD 25, which provides evidence of general liability coverage, is a widely used document in the industry and could be considered the “standard” ACORD COI. ACORD 25 is used across various sectors to provide a standard, easily digestible document that verifies insurance coverage. 

Why Do Insurance Companies Use ACORD Forms?

Today, insurance practitioners largely use ACORD forms to aid in their compliance efforts and to fall in line with industry precedents. Here are a few reasons why insurance companies typically stick with ACORD forms:

  • Standardization. Perhaps the biggest benefit of using ACORD forms is that so many others do, too, which helps provide consistency and accuracy in cross-company communications.
  • Efficiency. With everyone becoming used to reading one type of document, these forms help streamline the process of sharing and parsing important insurance information.
  • Compliance. ACORD forms are carefully crafted and are very good about aligning with regulatory requirements and industry standards, making them a great option for gaining confidence that you’re providing information required by regulations.

Do All Insurance Companies Use ACORD Forms?

While there’s no way to verify that all insurance companies use ACORD forms, and it is not a legal mandate to do so, they are the most widely accepted COI insurance documents across the insurance industry. Today, more than 36,000 organizations across over 100 countries stand by them.

Manage ACORD Forms with Ease with a Powerful Partner

With the many ACORD COI forms you may have to manage, there can quickly be a lot to keep track of. Consider partnering with a solution that reduces the time, energy, and risk that goes into COI management. Find out why myCOI could be the partner for you by giving us a call today. 

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