How to Inspect an ACORD 25 Certificate of Insurance: A Contractor's Checklist
What Is an ACORD 25?
The ACORD 25 (Certificate of Liability Insurance) is a standardized single-page document published by the Association for Cooperative Operations Research and Development. It summarizes the commercial liability coverage carried by a business on the date the certificate is issued.
An ACORD 25 is not an insurance policy, it does not confer legal rights, and it does not amend the terms of the underlying contracts between the insurer and the insured. It serves as an administrative snapshot indicating that specific policies were active when the broker signed the form.
How to Read Each Important Section
Reviewing an ACORD 25 requires looking past top-level summary numbers. You must examine eleven distinct sections to confirm that the document meets your master subcontract agreement:
1. Producer
Identifies the licensed insurance broker. Ensure contact details are verifiable. If you suspect an altered document, contact the producer directly.
2. Insured
Must match the exact legal corporate entity name on your subcontract agreement. If the contract is with "Apex Mechanical LLC," a certificate issued to an informal trade name is defective.
3. Insurers Affording Coverage (NAIC #)
Lists carrier letters and five-digit NAIC codes. Look up each carrier's financial solvency rating on A.M. Best; commercial subcontracts typically require an A- or higher rating.
4. Policy Numbers
Must list active policy numbers. Binders or "TBD" markings require mandatory follow-up within 30 to 60 days.
5. Effective and Expiration Dates
Effective dates must precede jobsite mobilization, and expiration dates must extend through the current project phase.
6. Coverage Types and Checkboxes
Verify Occurrence basis for General Liability, confirm that General Aggregate applies per "Project," and ensure Auto Liability covers "Any Auto" or "Hired and Non-Owned Autos."
7. Coverage Limits
Verify $1M Occurrence, $2M General Aggregate, $2M Products-Completed Operations, $1M Auto Combined Single Limit, and statutory Workers' Comp with $500K or $1M Employers' Liability.
8. Description of Operations
Verify explicit project name, jobsite location, Additional Insured wording, Waiver of Subrogation, and citations to specific ISO endorsement forms.
9. Certificate Holder
Must list your company's full legal entity name and primary business address.
Certificate Holder vs. Additional Insured
Listing your company in the Certificate Holder box merely identifies where the PDF was sent. It confers zero insurance protection. To gain defense and indemnity under the subcontractor's policy, your firm must be designated an Additional Insured through a formal policy endorsement.
Read our complete analysis of CG 20 10 vs CG 20 37 endorsementsIf anything on the form looks edited, such as mismatched fonts in the dates or a policy number marked "TBD", verify it with the producer before approving. See how to spot a fake certificate of insurance.
ACORD 25 Inspection Checklist
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Explore automated COI tracking software for contractor complianceFrequently Asked Questions
ACORD stands for the Association for Cooperative Operations Research and Development. It is an insurance industry non-profit that standardizes forms and electronic data exchange specifications.
The current industry standard edition is ACORD 25 (2016/03). While older editions (2014/01 or 2009/09) occasionally appear from legacy broker systems, contractors should request certificates on the current 2016/03 form.
No. Handwritten alterations, crossed-out clauses, or white-out invalidate the document. Any policy adjustment must be issued electronically by the licensed insurance broker.
An NAIC number is a five-digit identification code assigned to insurance companies by the National Association of Insurance Commissioners. It allows contractors to verify carrier solvency through A.M. Best or state insurance bureaus.
No. The certificate proves only policy issuance on that date. Claim payments depend on underlying policy terms, conditions, deductibles, and exclusions.
The Description of Operations is the only section where brokers can add custom clarifying language, including project-specific additional insured designations, primary and non-contributory wording, and citations to specific attached endorsement forms.