ACORD 25: Certificate of Liability Insurance
ACORD 25 is a snapshot of a business’s liability coverage on the day it’s issued, not a guarantee of it. Most of the disputes that come up around this form trace back to that one distinction.
What this certificate actually is
Every certificate like this one carries the same warning at the top: it’s issued as a matter of information only. That language isn’t boilerplate the drafters forgot to remove, it’s doing real legal work. Several states have adopted certificate-of-insurance statutes that explicitly prevent a COI from expanding, altering, or amending the coverage described in the actual policy, no matter what a broker types into the description field. If the policy lapses the day after a certificate is issued, the certificate doesn’t revive it. That’s the single fact worth understanding before anything else on this page.
Why certificates like this one get rejected
These are the specific reasons a requesting party’s compliance process most often bounces a certificate back, not generic advice, the actual failure points.
- Legal name mismatch
- The insured name reads "Smith Contracting LLC" but the contract names "Smith Contracting, L.L.C." Automated compliance systems used by property managers and general contractors often flag this as a non-match and reject the certificate outright.
- Missing required policy wording
- Many commercial contracts specify exact endorsement language, such as "primary and non-contributory" or "waiver of subrogation in favor of [company]." If that exact wording isn’t reflected, the certificate gets sent back even though coverage may technically be adequate.
- Policy period doesn’t cover the full contract term
- A one-year policy expiring mid-project is a common miss, especially on multi-year leases or long construction contracts. The certificate is only valid proof for the dates shown.
- No reference to the additional insured endorsement
- If a contract requires additional insured status, some requesting parties specifically look for the endorsement form number (commonly CG 20 10 or CG 20 33 for ongoing operations) referenced in the description box, not just the words "additional insured" typed in.
What coverage limits actually get requested
There’s no universal required amount, it’s set by whatever contract or lease is asking for the certificate, but $1,000,000 per occurrence with a $2,000,000 aggregate is the de facto baseline in most U.S. commercial leases and vendor contracts. Larger general contractors and enterprise clients commonly push that to $2,000,000 per occurrence with a $4,000,000 aggregate, often satisfied by layering an umbrella policy on top of a smaller primary policy rather than buying a larger primary policy outright.
Certificate holder vs. additional insured, the distinction that causes disputes
Being named as “certificate holder” and being an “additional insured” are two different legal positions, and the form’s own layout makes that easy to miss. Certificate holder is just an address the certificate gets mailed to. Additional insured status only exists if the actual policy has been endorsed to grant it, and that endorsement has its own form number and its own paper trail, separate from this certificate entirely. A property manager who files this certificate away as proof they’re covered, without confirming that endorsement exists, is relying on something the form itself says not to rely on.
How to fill out ACORD 25
What your insurance producer enters in each section, and why it matters.
Producer
The insurance agency or brokerage issuing the certificate on the insured’s behalf.
- Producer name and address
- The agency or brokerage that arranged the coverage and is issuing this certificate.
- Contact name, phone, and email
- Who to contact at the agency with questions about this certificate.
Insured
The business or individual the policy actually covers.
- Insured name and address
- Must match the legal name on the policy exactly. A close-but-not-exact match is a common reason certificates get sent back.
Insurer(s) Affording Coverage
Identifies which insurance company actually stands behind each type of coverage listed below.
- Insurer A through F
- Up to six insurers can be listed, since umbrella or workers’ comp coverage sometimes comes from a different carrier than general liability.
- NAIC #
- A unique ID number the National Association of Insurance Commissioners assigns to every licensed insurer, used to confirm exactly which company is meant.
Certificate Number & Revision Number
Reference numbers for this specific certificate, not the insurance policy itself.
- Certificate Number
- A tracking number for this certificate, useful if it’s ever reissued or referenced later.
- Revision Number
- Increases each time this certificate is reissued with updated information.
Commercial General Liability
Covers claims of bodily injury or property damage the business causes to someone else in the course of normal operations.
- Claims-Made vs. Occurrence
- Occurrence covers incidents that happened during the policy period, no matter when the claim is filed. Claims-made only covers claims filed while the policy is active, which matters if a claim surfaces years later.
- General Aggregate Limit Applies Per
- Whether the policy’s total payout cap resets per policy period, per project, or per location, this affects how much coverage is left if there are multiple claims.
- Each Occurrence / General Aggregate
- The maximum payout for a single incident, and the maximum total payout across all incidents in the policy period.
Automobile Liability
Covers vehicles used in the business, if any.
- Any Auto / Owned / Hired / Non-Owned
- Specifies whether coverage applies to all vehicles, only ones the business owns, only rented or borrowed vehicles, or some combination.
- Combined Single Limit
- A single dollar limit covering both bodily injury and property damage from an accident, rather than separate limits for each.
Umbrella / Excess Liability
Extra liability coverage that kicks in above the limits of the primary general liability, auto, or employer’s liability policies.
- Occur vs. Claims-Made
- Same distinction as general liability, applied to the umbrella layer.
- Deductible / Retention
- The amount the insured pays before the umbrella policy responds, if anything.
Workers’ Compensation & Employers’ Liability
Covers employee injuries on the job, and the employer’s own liability exposure connected to those injuries.
- Any proprietor/partner/executive officer/member excluded?
- Owners and officers can sometimes exclude themselves from coverage; this indicates whether that applies here.
- E.L. Each Accident / Disease limits
- Separate dollar limits for a single-accident injury versus an occupational disease claim.
Description of Operations, Locations, or Vehicles
A free-text area tying the coverage to a specific contract, project, or location. This is also where additional insured status or a waiver of subrogation actually gets documented, when the policy has been endorsed to include them.
Certificate Holder
The name and address of whoever requested this certificate, typically a client, landlord, or lender.
Cancellation
States that if a listed policy is cancelled before its expiration date, notice will be delivered according to that policy’s own terms. Earlier versions of this form referenced a fixed 30-day notice period; the current version does not, and leaves the actual notice period up to the policy itself.
The mistake that actually matters
The most consequential misunderstanding isn’t a data-entry mistake at all: assuming that being named as a certificate holder, or even as an "additional insured" in a description field, automatically provides that protection. It doesn’t. The certificate is only a summary, the actual coverage depends entirely on whether the underlying policy has been endorsed to include that party. If that endorsement was never issued, the certificate promises nothing.
If you’re the one requesting this certificate, check these
- The certificate holder’s name matches your exact legal entity name, not an abbreviation or a DBA.
- The policy period (not just the issue date) covers your entire contract or lease term.
- If your contract requires additional insured status, that status, and ideally its endorsement number, appears in the description box, not just implied.
- The insurer named is one you recognize, or can verify, using its NAIC number, on your state’s Department of Insurance website.
How long is it valid?
A certificate isn’t updated automatically when a policy renews, changes, or lapses; it’s a snapshot as of one date. That’s why many requesting parties build an annual re-request into their compliance process instead of collecting one certificate and filing it away permanently.
How this compares to similar forms
ACORD 25 covers liability coverage. For property coverage instead, most commonly requested by a lender rather than a client or landlord, the equivalent form is ACORD 28 (Evidence of Commercial Property Insurance) or ACORD 27 for smaller-scale property.
Where to submit this form
Completed certificates are typically sent directly to the requesting party, such as a client or property manager, not filed with any government agency.
Frequently asked questions
Does ACORD 25 make me an additional insured?
No. The form states this directly: it confers no rights on its own. Being an additional insured requires an endorsement on the actual policy, the certificate can reference that, but can’t create it.
Will I be notified before the policy is cancelled?
Not automatically, and not on a fixed schedule. Older versions of this form referenced a 30-day notice; the current 2016/03 version leaves cancellation notice entirely up to the terms of the underlying policy, so this is worth confirming directly with the producer if it matters to you.
What is the difference between "claims-made" and "occurrence" coverage?
Occurrence coverage applies to incidents that happened while the policy was active, regardless of when the claim is filed. Claims-made coverage only applies if the claim is filed while the policy is still active, which matters for issues that surface well after the fact.
Who fills out ACORD 25?
The insurance producer (agent or broker) completes and issues it on behalf of the insured business, using details from the actual policy.
Can I fill out ACORD 25 myself?
Technically the form can be filled in by anyone, but only your insurance producer can issue a valid certificate, since it has to reflect your actual policy details and carry the producer’s authorization. A self-filled copy isn’t valid proof of coverage.
What’s the actual difference between a certificate holder and an additional insured?
Certificate holder just means the certificate gets sent to that party, it’s an address, not a legal status. Additional insured means the policy itself has been endorsed to extend coverage to that party. A business can be a certificate holder on hundreds of certificates without ever being an additional insured on any of them.
Can a certificate of insurance be falsified?
Yes, and it happens often enough that many landlords, general contractors, and lenders now verify certificates directly with the named insurer or through a third-party verification service rather than accepting a PDF at face value, especially for large contracts.
Why would a property manager or GC reject my certificate?
The most common reasons are a legal name mismatch, missing required endorsement wording like "primary and non-contributory," a policy period that doesn’t cover the full contract term, or no reference to the specific additional insured endorsement they require.
Related forms
References
Daniel Whitfield
Daniel researches and writes about ACORD insurance forms and commercial insurance documentation, helping agents, brokers, and business owners understand what each form requires and how to complete it correctly.
This site is not affiliated with, endorsed by, or sponsored by ACORD LLC. ACORD® is a registered trademark of ACORD Corporation. This guide is for informational purposes only and is not legal or insurance advice.