The ACORD 25 Certificate of Liability Insurance is the most requested document in commercial insurance. It is issued to certificate holders who need proof that a business carries liability coverage. Understanding what the ACORD 25 does — and what it does not do — is essential for every commercial lines agent.
The ACORD 25 is issued whenever a party requests proof of liability insurance. This includes: general contractors requiring certificates from subcontractors, landlords requiring certificates from tenants, clients requiring certificates from vendors, and lenders requiring certificates from borrowers. A certificate may be requested for virtually any commercial account.
The ACORD 25 summarizes the key liability coverages on an insured's policy:
• Commercial general liability limits (occurrence, aggregate, personal injury, products-CO) • Automobile liability limits • Umbrella/excess liability limits • Workers compensation limits • Employer's liability limits • Policy numbers and effective/expiration dates for each coverage • Name and address of the producing agency • Name and address of the certificate holder
The standard ACORD 25 includes important language: "This certificate is issued as a matter of information only and confers no rights upon the certificate holder."
This means the certificate does not amend, extend, or alter the coverage. A party listed only as a certificate holder is not an additional insured. The certificate cannot be used to create coverage that does not exist in the underlying policy.
The ACORD 25 has a section for describing additional insured endorsements. When a certificate holder has been added as an additional insured by endorsement, the certificate should reference this — noting the endorsement form number and the type of AI status provided.
However, the endorsement itself (not the certificate) is what actually creates the coverage. Agents must ensure the endorsement is added to the policy before issuing a certificate that references it.
The ACORD 25 has a cancellation notice section that formerly stated the carrier would provide "30 days written notice of cancellation." The current version of the ACORD 25 leaves this section blank and includes language that the insurer will "endeavor to mail" notice but has no obligation to do so.
Many certificate holders request specific cancellation notice periods (30 or 60 days). Agents need to check whether the carrier's policy provides this — it typically requires a specific endorsement.
Listing additional insured status on the certificate without the endorsement actually being on the policy
Using outdated policy numbers or effective dates
Forgetting to update certificates when a policy renews
Showing limits on the certificate that are higher than the actual policy limits
Issuing a certificate that says "waiver of subrogation" without the WOS endorsement being added
Send your client a plain-English intake link. When they finish, the completed ACORD 25 and all required companion forms are generated and ready to submit.