Guide

How to read an ACORD 25 certificate of insurance

The ACORD 25, titled "Certificate of Liability Insurance", is the one-page form a sub's insurance agent sends when you ask for a COI. Here's what each box means, what to check before you file it, and what the certificate doesn't prove. It's written for GC offices and property managers, not insurance pros. (Proof of property insurance for a lender or landlord is usually a different form: see ACORD 25 vs ACORD 28.)

First: what the form says about itself

The top of every ACORD 25 carries a disclaimer. In capitals, it says the certificate is "issued as a matter of information only and confers no rights upon the certificate holder" and does not "amend, extend or alter the coverage afforded by the policies below". In practice:

• A COI is a snapshot. It shows what the agent says was in force on the day they issued it.
• It is not the policy. If the certificate and the policy disagree, the policy wins.
• The form's "IMPORTANT" box says that if you need to be an additional insured, "the policy(ies) must be endorsed", and that "a statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s)". If your contract requires additional-insured status, ask for the endorsement too, not just a line on the certificate. More in additional insured vs certificate holder.

The boxes, top to bottom

1. Date. When the certificate was issued. An old date means an old snapshot, so ask for a fresh one.
2. Producer. The insurance agent or broker who issued it, with a contact name, phone and email. This is who you call to verify the certificate.
3. Insured. Your sub or vendor. The name should match the company you actually contracted with, LLC/Inc. included.
4. Insurer(s) affording coverage (A–F) and NAIC #. The insurance companies behind each policy. The letter links each insurer to a row in the coverage table.
5. Coverages table. One row per policy type:
   • Commercial general liability: occurrence or claims-made; limits for each occurrence, general aggregate, products–completed operations, personal & advertising injury, and others.
   • Automobile liability: which autos are covered (any auto, owned, hired, non-owned) and the limits.
   • Umbrella / excess liability: extra limits on top of the others.
   • Workers compensation and employers' liability: statutory WC plus employers'-liability limits. There's also a Y/N box asking whether any proprietor, partner, executive officer or member is excluded.
   Each row has a policy number, policy effective and policy expiration dates, and two narrow columns: ADDL INSD (additional insured) and SUBR WVD (subrogation waived).
6. Description of operations / locations / vehicles. Free text. Agents put project names, additional-insured wording or other remarks here. The form says ACORD 101 (Additional Remarks Schedule) can be attached if more space is needed.
7. Certificate holder. That's you: the name and address the certificate is issued to. Check it's your exact legal name and address.
8. Cancellation. The current wording says that if a policy is cancelled before it expires, "notice will be delivered in accordance with the policy provisions". In other words, the certificate itself doesn't promise to tell you.

A 2-minute check before you file it

• ☐ Insured name matches the sub you hired.
• ☐ Expiration dates are in the future, and you've written them down somewhere that reminds you before they pass.
• ☐ Limits meet what your contract requires (e.g. $1M each occurrence, if that's your requirement).
• ☐ Workers' comp is listed, or the sub has given you their state's exemption paperwork if they have no employees.
• ☐ Certificate holder is your exact name and address.
• ☐ If you need additional insured or a waiver of subrogation, you have the endorsement, not just a checked box. See waiver of subrogation, explained.
• ☐ When something looks off, call the producer listed on the form to confirm.

For the full set of steps, including how to spot an altered certificate and check the insurer, see how to verify a certificate of insurance.

The checklist above is general good practice, not legal or insurance advice. Your contract and your own insurance agent decide what you actually need.

The part that actually goes wrong: renewals

Reading one certificate takes two minutes. The real problem is that every policy on it expires, usually once a year, and each sub renews on a different date. Someone has to notice, email the sub, wait, chase again and update the spreadsheet. When that slips, you end up with a sub on site whose certificate lapsed months ago.

Sources

• Quoted form text comes from a sample ACORD 25 (2014/01) published by NYC's Department of Youth & Community Development: General Liability Insurance Sample (PDF). Other editions of the form exist (for example 2016/03), and their layout may differ slightly.

ACORD is a registered mark of ACORD Corporation. GreenlightSubs is not affiliated with ACORD. GreenlightSubs tracks documents and reminds vendors; it doesn't verify coverage with insurers.