ACORD 25 Certificate of Liability Insurance

A certificate of liability insurance – also known as an ACORD 25 form and a certificate of insurance (COI) – is a one-page document that proves you have business liability insurance and can meet the conditions of contracts that require it.

As the certificate holder, it gives you proof of insurance that you can show to anyone you do business with to prove that your business is protected from common risks.

A certificate of liability insurance is issued as a matter of information by your insurance provider. It summarizes the key elements of your policy or multiple policies, such as your types of coverage, insurance policy numbers, policy limit (such as per-occurrence limit and aggregate limit of your coverage), policy effective date, and policy expiration date.

A certificate of liability insurance may also have language pertaining to the terms, exclusions, and conditions of the policy, plus the insurance company’s phone number, the certificate number, a contact person, mailing address, and fax number.

The conditions of such policies depend on the type of insurance. Insurance companies provide certificates of liability insurance for a variety of small business insurance policies, including:

• Commercial general liability insurance (CGL)
• Professional liability insurance, also known as errors and omissions insurance (E&O)
• Workers' compensation insurance
• Commercial umbrella insurance
• Cyber insurance
• Commercial auto insurance

The person or company who owns the policy is called the named insured. An additional insured is someone else covered by your policy. The additional insured could be an individual, a group, or another company that you do business with.

An endorsement for the additional insured would typically be added to your general liability insurance and give the additional insured protection against third-party claims and lawsuits.

If allowed by your insurance company, this offers a form of subrogation for your additional insureds, so the insurance company could represent them in court and assume their right to pursue an individual or company for compensation on a claim.

To see if additional insureds can be added to your policy, you need to check your insurance contract or contact your insurance company. If this is allowed within your policy provisions, be sure to get a copy of the additional insured endorsement.

No business owner wants to get sued, especially if it’s because a vendor caused property damage or bodily injury. For this reason, companies want to know the firms they hire have their own liability insurance that would cover property damage or an injury.

For example, let’s say you own a carpentry firm. You recently received a verbal agreement to do a job for a general contractor who builds luxury homes.

However, before signing a contract, the contractor asks for a copy of your certificate of liability insurance. They request it because they don’t want to be held liable if you or one of your employees damaged someone’s property or injured a third party while working at a construction site.

The COI you receive from your issuing insurer gives you proof of insurance and shows that you’re covered in case something goes wrong. Your certificate of liability insurance is your ticket to securing the contract.

A certificate of insurance includes:

• Your name and address
• The name of your agent and insurance company
• The start and end dates of your policy
• The type(s) of coverage you purchased
• Your coverage limits
• Your policy number(s)
• A description of operations

Download an example of an ACORD certificate of liability insurance.

Small business owners who purchase a policy with Insureon can access their certificate of insurance online or on their phone shortly after buying a policy.

If you don’t yet have a policy, simply complete Insureon’s easy online application to get free online quotes. Our licensed insurance agents, who have worked with thousands of small businesses, can help you get the right insurance coverage at the best price, often on the same day that you contact us.

For much of the twentieth century, insurance companies basically took their own unique approach to policy forms. However, this confused insurance agents, brokers, and customers, while making life difficult for insurers.

To avoid this confusion, companies banded together in the 1970s to form the Association for Cooperative Operations Research and Development (ACORD). They authorized the ACORD corporation to develop standard forms that everyone involved in the insurance industry could use and that were easier to read. This included an ACORD certificate of insurance.

Insureon helps sole proprietors and small business owners get commercial insurance quotes with one easy online application. Start a quote today to protect your business.