ACORD 25 is the standard certificate of liability insurance, a one-page snapshot issued by an agent or broker that summarizes a business's liability policies, limits, and effective dates for a third party who asked for proof of coverage. It is the most widely used document in commercial insurance, and also the most misunderstood, because the certificate is issued for information only and confers no rights on the person holding it. The coverage lives in the policy, not on the certificate.
If a landlord, general contractor, or customer asks for "a COI" or "an ACORD," this is almost always the form they mean. This page explains what the certificate actually proves, what it deliberately does not do, and how the certificate holder and description of operations boxes work in practice.
What does ACORD 25 do?
ACORD 25 exists so a business can prove it carries liability insurance without handing over its entire policy. The agent or broker fills in the insured's name, the carriers, the policy numbers, the effective and expiration dates, and the limits for general liability, auto liability, umbrella, and workers compensation. The party requesting proof, typically a landlord, project owner, or contracting counterparty, receives the certificate and files it as evidence that coverage existed on the day it was issued. That is the whole function.
The form's own preprinted language states that it is issued as a matter of information only, that it confers no rights upon the certificate holder, and that it does not amend, extend, or alter the coverage described. A certificate of insurance is a snapshot, and like any snapshot it can be outdated a day later if the policy cancels or changes.
What does each box on the ACORD 25 show?
The certificate reads top to bottom in six zones. The producer box at the top left identifies the issuing agency and its contact person, which matters because questions about the certificate go to the agency, not the carrier. Below it, the insured box shows the named insured as it appears on the policy, and a mismatch between that name and the entity you contracted with is worth a phone call. To the right, the insurers affording coverage appear on lettered lines, A through F, each with its NAIC number, the code that identifies the carrier so a holder can verify licensing and financial ratings independently.
The middle of the page is the coverage grid, one row per policy: general liability, auto liability, umbrella or excess, workers compensation, and a blank row for anything else. Each row ties back to an insurer letter and shows the policy number, effective and expiration dates, and the limits for that line. Reading a certificate well means checking a few specific things in that grid:
- Insurer letters and NAIC numbers: match each coverage row to its lettered carrier, then check the carrier itself, since a certificate can accurately report a policy from an insurer you would never accept.
- The addl insd and subr wvd columns: these checkboxes claim additional insured status or a waiver of subrogation applies, and the claim is only as good as the endorsement behind it, so ask for the endorsement copy.
- Effective and expiration dates: an expired date, or a policy period that ends before your project does, is the single most common defect on certificates sitting in compliance files.
- Limits against the contract: compare each occurrence, aggregate, and umbrella figure to the minimums the contract names, line by line rather than in total.
Why does the certificate confer no rights?
The certificate confers no rights because it is not a contract. The insurance contract is between the insurer and the named insured, and the certificate holder is not a party to it. The certificate holder box at the bottom of the form identifies who asked for proof, nothing more.
Rights under the policy, such as defense and indemnity as an additional insured or the right to receive notice of cancellation, exist only when an endorsement attached to the policy grants them. This is why sophisticated contract administrators ask for a copy of the additional insured endorsement, such as CG 20 10, alongside the certificate rather than accepting the certificate alone.
The distinction between certificate holder and additional insured status is one of the most consequential in commercial insurance, and the certificate itself tells you which one you are only indirectly, through checkboxes and remarks that must match real endorsements on the policy.
What happened to the 30 day notice of cancellation?
Many contracts still require a certificate providing "30 days notice of cancellation to the holder," and modern ACORD 25 editions cannot deliver that. Older editions of the form said the insurer would endeavor to mail notice to the certificate holder if the policy was cancelled before expiration. Even that wording was soft, since "endeavor to" promised effort rather than results.
Current editions dropped the notification language entirely and instead state that notice will be delivered in accordance with the policy provisions. The practical effect is simple. A certificate holder gets cancellation notice only if the policy itself, through a notice of cancellation endorsement naming that holder, requires the carrier to send it.
When a contract demands notice rights, the compliant answer is to ask the broker whether the carrier offers such an endorsement, not to retype the old wording onto the certificate. Agents who alter the preprinted certificate language expose themselves to E&O claims and, in some states, to regulatory penalties under statutes that prohibit issuing misleading certificates.
How should the description of operations box be used?
The description of operations box exists to identify the job, contract, or location the certificate relates to, and to reference endorsements that actually exist on the policy. Good practice looks like this: name the project, then state that additional insured status applies per the attached endorsement form number, with the endorsement copy stapled behind the certificate.
Bad practice is using the box as a free-text field for coverage promises the policy does not contain. Carriers instruct their agents not to type coverage-expanding language there, because a certificate that misdescribes coverage creates liability for the agency without creating coverage for anyone. Requesters can protect themselves with one habit. Compare every statement in the box against an actual policy document, and treat any claim that cannot be matched to a form number as unverified:
| Document | What it is | Does it change coverage? |
|---|---|---|
| ACORD 25 certificate | Informational snapshot of policies in force | No |
| Additional insured endorsement | Policy amendment granting insured status to a third party | Yes |
| Notice of cancellation endorsement | Policy amendment requiring notice to a named party | Yes |
| Insurance binder | Temporary evidence that coverage is bound pending policy issuance | Yes, temporarily |
Where can you see the actual form?
Menlo does not reproduce ACORD forms because they are copyrighted by ACORD Corporation. Licensed users, meaning agencies and carriers that hold an ACORD license, access the current editions through acord.org and generate completed certificates through their agency management systems. If you are the party requesting proof of coverage, you do not need form access at all. You receive completed certificates directly from the insured's agent or broker, and you can ask that same representative for copies of the endorsements the certificate references.
Frequently asked questions
Is an ACORD 25 proof of insurance?
It is evidence that the policies listed were in force on the date the certificate was issued, according to the agent who issued it. It is not a guarantee that coverage remains in force afterward, and it is not a policy document. For anything contractual, verify the endorsements behind it.
Does being a certificate holder make me an additional insured?
No. The certificate holder box only records who received the certificate. Additional insured status requires an endorsement attached to the policy, and careful requesters ask for a copy of that endorsement along with the certificate.
Who issues an ACORD 25, the insurance company or the agent?
Nearly always the agent or broker of record, using their agency management system. Carriers authorize their producers to issue certificates that accurately reflect the policy. That is also why the certificate lists the producer's contact information at the top, since questions and renewal certificates go through the agency.
How long is an ACORD 25 valid?
The certificate has no validity period of its own. It reflects coverage as of its issue date, and the policies it lists carry their own expiration dates. Most businesses that collect certificates from vendors request a fresh one at each policy renewal, which is why agencies batch-issue renewal certificates every year.
This guide is for educational purposes and describes standard certificate practice in Menlo's own words. Form numbers and titles are cited for identification only, and Menlo Insurance Services is not affiliated with ACORD Corporation. Your policy's specific terms, conditions, and endorsements control. Talk to a licensed broker about your actual exposures.