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Compliance Definition

What is an ACORD 25 Form? The Definitive Guide (2026)

The ACORD 25 Certificate of Liability Insurance is the universal standard used across construction, real estate, and facilities management to verify commercial liability coverage. Understand the layout, limits, common errors, and verification steps in our definitive field-by-field walkthrough.

Written by Jalwan·Reviewed by Sarah Jenkins, CRIS·Last updated September 2026
Definition

An ACORD 25 is a standardized one-page summary issued by licensed insurance agents to certify that a named insured maintains active general liability, automobile liability, excess/umbrella, and workers’ compensation policies with specific limits and coverage dates.

Table of Contents

1. What is the ACORD 25 used for?

The Association for Cooperative Operations Research and Development (ACORD) publishes standardized forms for the insurance industry. The ACORD 25 is specifically designed to prove liability insurance coverage. When a General Contractor hires a subcontractor, or a landlord signs a commercial tenant, they require an ACORD 25 to verify that the party has sufficient insurance to cover potential property damage, bodily injury, or legal liabilities.

It is important to note that the ACORD 25 is for liability (e.g., General Liability, Auto Liability, Workers' Comp). For property insurance (e.g., Builder's Risk, Commercial Property), the correct form is the ACORD 24 or ACORD 28.

2. Field-by-Field Walkthrough of the ACORD 25

The ACORD 25 is densely packed with information. Here is a section-by-section breakdown of what each box means and what compliance managers look for.

Box 1 Producer

The Producer is the insurance broker or agency that issued the certificate. This box includes their name, address, and contact information. If you need to request missing endorsements or correct a spelling error, this is the entity you contact.

Box 2 Insured

The named insured. Crucial verification step: The name in this box must exactly match the legal business name on your signed contract. If the contract is with "Smith Contracting LLC" but the ACORD 25 says "John Smith DBA Smith Construction", you do not have a valid proof of insurance for the contracted entity.

Box 3 Insurers Affording Coverage (NAIC)

This section lists the actual insurance companies (carriers) underwriting the policies, labeled A through F. Next to each carrier is their 5-digit NAIC (National Association of Insurance Commissioners) number. Compliance managers use this NAIC number to check the carrier's A.M. Best rating, ensuring the insurer is financially solvent (e.g., requiring an A- VII rating or better).

Box 4 Coverages & Limits

This is the core of the certificate. The table maps the Insurers (A-F) to specific policy lines:

  • Commercial General Liability (CGL): Shows occurrence and aggregate limits. Checkboxes indicate if coverage is "Claims-Made" or "Occurrence", and if the aggregate applies "Per Project" or "Per Location".
  • Automobile Liability: Shows limits for "Any Auto", "Owned Autos", "Hired Autos", and "Non-Owned Autos". A Combined Single Limit (CSL) is typically shown.
  • Umbrella / Excess Liability: Shows additional limits that sit on top of the underlying GL, Auto, and Employers Liability policies.
  • Workers Compensation & Employers Liability: Confirms if the insured has statutory workers comp coverage, and lists the Employers Liability limits (e.g., $1M/$1M/$1M). It also has a Y/N checkbox indicating if any officers/partners are excluded.

Box 5 Description of Operations / Locations / Vehicles

This free-text box is where brokers add project-specific details, job numbers, and critical compliance language. It will often state: "Certificate holder is named as an Additional Insured on a primary and non-contributory basis with a waiver of subrogation applying to all policies, per written contract." Note: Text in this box is informational; actual endorsements must still be attached to the policy.

Box 6 Certificate Holder & Cancellation

The Certificate Holder box names the entity receiving the certificate (e.g., your company). The Cancellation provision states that the insurer will endeavor to mail notice (usually 30 days) to the certificate holder if the policy is cancelled before the expiration date.

3. Top 5 Common ACORD 25 Errors

1. Missing "Per Project" Aggregate

The General Aggregate limit must be marked to apply "Per Project". Otherwise, claims on other jobsites could drain the policy limit, leaving your project exposed.

2. Name Mismatches

The Insured name does not legally match the signed contract, meaning the contractually obligated entity actually has no verified insurance on file.

3. Insufficient Auto Coverage

The Auto Liability section only checks "Owned Autos" but leaves "Hired" and "Non-Owned" unchecked, exposing you if an employee causes a wreck in their personal vehicle on the way to the jobsite.

4. Umbrella Policy Gap

An umbrella policy is listed, but the underlying General Liability and Auto limits do not meet the minimum attachment point required by the Umbrella carrier.

5. Missing Endorsement Forms

The Description of Operations says "Additional Insured applies", but the actual ISO endorsement forms (e.g., CG 20 10) are not attached to the certificate PDF.

4. 4 Steps to Verify an ACORD 25 Certificate

Manually reviewing an ACORD 25 takes compliance managers anywhere from 5 to 15 minutes per document. Follow these standardized verification steps:

  1. Validate the Insured Name: Cross-reference Box 2 against your master subcontractor agreement. Ensure LLCs, Incs, and DBAs are identical.
  2. Check Expiration Dates: Look at every policy line. Do the effective and expiration dates cover the entire duration of the project? If a policy expires mid-project, calendar a reminder to request a renewal 30 days prior.
  3. Audit the Limits against Contract Requirements: Compare the numbers in the limits column against your insurance requirement addendum. Did they provide $1M in GL when the contract required $2M? Did they provide a $1M Umbrella to close the gap?
  4. Read the Description of Operations & Endorsements: Ensure all required waivers of subrogation and additional insured statuses are explicitly noted. Most importantly, page down through the PDF to read the actual attached endorsement riders to ensure your company name is scheduled or covered by blanket wording.

5. The Limitations of the ACORD 25

The most important words on the ACORD 25 are printed in the top right corner:

"THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW."

This disclaimer means that if a broker makes a typo on the ACORD 25 and says a subcontractor has $2M in coverage, but the actual policy only has $1M, the insurance company will only pay out $1M. The ACORD 25 is not a contract. This is why obtaining the actual policy endorsements (like CG 20 10, CG 20 37, and CG 24 04) is the only legally binding way to verify Additional Insured status and Waivers of Subrogation.

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Authoritative Sources & Regulatory References

The data in this ACORD 25 guide comes from these sources: