ACORD 25 — Certificate of Liability Insurance

Edition 2016/03 · PDF format

The most widely used ACORD form. Provides proof of liability insurance coverage including general liability, auto liability, umbrella/excess, and workers compensation. Required by clients, vendors, and business partners.

What is ACORD 25?

ACORD 25 (Certificate of Liability Insurance) is the most-used insurance form in the United States. It is a one-page summary that provides evidence that a business carries specific types of liability insurance: typically general liability, automobile liability, umbrella or excess liability, and workers compensation.

The certificate is informational only. It does not modify, extend, or alter the coverage afforded by the underlying policies. It exists so that third parties (clients, landlords, vendors, contractors) can quickly verify that an insured has the coverage promised in a contract or vendor agreement.

Because ACORD 25 is universally accepted, every commercial carrier in the U.S. issues it through its agency systems. Brokers can produce dozens or hundreds of certificates daily for active accounts.

Who needs this form

Any business that contracts with vendors, leases space, performs work on someone else's premises, or is required by contract to evidence liability coverage. The party requesting the certificate is the certificate holder. The party providing it is the insured.

When to use it

Use ACORD 25 whenever a third party requests proof of liability coverage. Common triggers: signing a commercial lease, beginning work on a construction project, onboarding as a vendor, applying for a license, or fulfilling contractual insurance requirements.

Key Fields on ACORD 25

The information the form captures, in the order it typically appears:

Producer (broker/agency) name and contact information
Insured name (must match policy named insured exactly)
Insurer(s) affording coverage with NAIC numbers
Policy types: General Liability, Auto Liability, Umbrella/Excess, Workers Compensation
Policy numbers and effective/expiration dates
Coverage limits per occurrence and aggregate
Certificate Holder name and address (the third party receiving the certificate)
Description of operations / Additional Insured language (when required)
Producer authorized representative signature

Common Mistakes

Recurring errors that delay processing or expose brokers to E&O claims:

Adding Additional Insured language without a policy endorsement

Listing a party as Additional Insured on the certificate without a corresponding policy endorsement is unenforceable and a top E&O claim source. Confirm the endorsement is bound before issuing.

Misspelling the named insured

The insured name must match the policy declarations exactly, including LLC/Inc. suffix and punctuation. Mismatches trigger rejection by national certificate holders.

Modifying after issuance

Never edit a certificate after it's been issued. Void it and produce a corrected version. Hand-modified certificates can be deemed fraudulent.

Using a stale form revision

ACORD updates the form periodically. Government and Fortune 500 certificate holders often require the latest revision and will reject older versions automatically.

Frequently Asked Questions

Is the ACORD 25 a contract?

No. ACORD 25 is informational only. It does not amend, extend, or alter the coverage afforded by the underlying policies. The actual coverage terms are governed by the policy itself.

Can a certificate holder rely on the cancellation notice clause?

ACORD removed the cancellation notice promise from the certificate years ago. The current language states that notice will be delivered in accordance with the policy provisions, not that the carrier will give the certificate holder advance notice.

How do I add an Additional Insured to ACORD 25?

First, bind the appropriate Additional Insured endorsement (e.g., CG 20 10, CG 20 37) on the underlying policy. Then reference it in the Description of Operations box on the certificate, citing the endorsement form and edition.

How long does an ACORD 25 remain valid?

Until the policies referenced expire or are cancelled. Most certificate holders treat the certificate as valid for the policy term shown, typically one year. Re-issue at each renewal.

Related ACORD Forms

ACORD 24