Learn how to read an ACORD 25 (Certificate of Liability Insurance)

The ACORD 25, or Certificate of Liability Insurance, is one of the more recognizable documents in the commercial insurance business.

Every day, the team at FOA delivers hundreds of ACORD 25 forms to and on behalf of our clients.

Although widely utilized for insurance evidence, certificate holders, and additional named insured documentation, many don’t understand how to navigate the Certificate of Liability Insurance document.

In this BLOG and VLOG, Mike Fusco explains how to read ACORD 25 and breaks down the sections.

We hope it helps!

TOP SECTION – DATE AND PRODUCER INFORMATION

The top portion of the ACORD 25 lists the date of issuance and the producer and producer’s contact information.

These sections are essential for proper handling, especially if you are a third-party recipient of the ACORD 25.

It’s helpful to have the producer’s contact information should you have follow-up questions or if you need to request an alteration of the document.

INSURED and INSURER(S) AFFORDING COVERAGE

In these sections of the ACORD 25, you will find the named insured and the insurance companies affording coverage.

As Mike points out in the video, the insured and producer may utilize several insurance companies to secure coverage. Hence, you will notice spaces for six insurers to list labeled insurer A-F. Directly to the right of the name, you will find the NAIC #.

Further down the form, look at the left-hand side under coverages and “INSR LTR.” The letter(s) listed in this column correspond with the insurers listed above in spaces A-F. For clarity, watch Mike’s video as he shows a sample certificate with the information listed.

COVERAGES SECTION

Once you familiarize yourself with the “INSR LTR” column of the coverages section, you may begin moving to the right for the remainder of the information.

You will find the type of insurance with spaces for the most common coverage types, such as commercial general liability, automobile liability, umbrella liability or excess liability (not the same), and workers’ compensation and employers’ liability.

You will also notice a space below the worker’s compensation section. This space allows the producer to enter other coverage types, such as professional liability, inland marine, and commercial property insurance.

Other details in the coverages section include policy numbers, effective dates, and insurance limits.

DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES

The box labeled description of operations/locations/vehicles is an important section of the ACORD 25. Here, the producer may enter details requested by the certificate holder, such as additional named insured parties, project locations, and endorsement types.

When receiving the document for review, pay close attention to this section of the Certificate of Liability Coverage form.

CERTIFICATE HOLDER

The certificate holder box is self-explanatory and is the section of the form where the certificate holder’s name and address show up.

As a cover letter to an additional named insured, the endorsements will follow the ACORD 25.

The endorsements will include the scheduled or blanket language provided by the carrier within the policy.

HOW CAN FOA HELP ME WITH MY NEEDS

As mentioned previously, our agency issues hundreds of ACORD 25 forms daily. We know how to assist and are willing to help you. Simply complete the form below, and one of our team members will reach out. You may also call or text us at 858-384-1506. Thanks again for visiting!

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