{"id":1505,"date":"2021-12-09T21:39:34","date_gmt":"2021-12-09T21:39:34","guid":{"rendered":"https:\/\/www.businessinsuranceusa.com\/news\/?p=1505"},"modified":"2026-04-09T14:35:50","modified_gmt":"2026-04-09T21:35:50","slug":"what-is-an-acord-certificate-of-insurance","status":"publish","type":"post","link":"https:\/\/www.businessinsuranceusa.com\/blog\/insurance\/what-is-an-acord-certificate-of-insurance\/","title":{"rendered":"What is an ACORD certificate of insurance?"},"content":{"rendered":"\n

<\/path><\/svg><\/span><\/span>Estimated reading time: <\/span>6<\/span> minutes<\/span><\/p>\n\n\n\n

If you own a business, you know how important it is to have business insurance. You may need proof of insurance when a landlord, client, lender, platform, or public agency asks for it. The exact requirement depends on the contract, business activity, and location.\u201d Business insurance and licensing requirements vary by business activity and jurisdiction.<\/p>\n\n\n\n

Some businesses are legally required to carry certain insurance, while others buy coverage because a lease, client, or contract requires it. If your business owns or regularly uses vehicles for work, commercial auto coverage is usually appropriate because personal auto insurance usually does not cover work use. Clients and customers may require you to have insurance before they agree to work with you. You might even have to carry insurance before you can bid on a project.<\/p>\n\n\n\n

As a business, having proof of insurance on hand is important. One of the most reliable and trustworthy forms of proof of insurance is the ACORD certificate. Your agent, broker, or another authorized representative can issue a certificate when proof of coverage is needed. Here\u2019s what you need to know about the ACORD certificate of insurance.<\/p>\n\n\n\n

<\/a>What is a certificate of insurance?<\/h2>\n\n\n\n

An ACORD 25<\/a> is a one-page document that summarizes your insurance coverage. ACORD 25 certificates can provide proof of many different types of commercial insurance coverage, such as general liability insurance, professional liability<\/a>, workers\u2019 compensation, commercial auto insurance<\/a>, and others. ACORD 27 and ACORD 28 are used for property-related evidence of insurance for parties with a financial interest in covered property. If a client, landlord, lender, or public agency asks for proof of insurance, ask which form they need and whether endorsements must accompany it.<\/p>\n\n\n\n

History of the ACORD certificate<\/h2>\n\n\n\n

ACORD stands for the Association for Cooperative Operations Research and Development, which is an international nonprofit organization created in 1970<\/a>. The group formed in response to what was, at the time, a confusing situation in the insurance industry.<\/p>\n\n\n\n

Back in the 1960s, every insurance company had its own process for creating and issuing documentation and insurance forms. Because there was no industry standard, customers, clients, and even insurance agents struggled to make sense of the various policies. There needed to be unified documentation to simplify insurance.<\/p>\n\n\n\n

The companies that founded ACORD agreed that this organization could develop standard forms for use by all insurers. At that point, the ACORD certificate of insurance was created to unify the industry.<\/p>\n\n\n\n

Today, when you need proof of coverage, the ACORD certificate<\/a> is the quickest and easiest way to provide that proof. Not to mention, it’s the most recognized and trusted. ACORD provides insurance documentation in 100 countries and works with more than 36,000 organizations.<\/p>\n\n\n\n

Information included on an ACORD insurance certificate<\/h2>\n\n\n\n

The ACORD 25 Certificate of Liability Insurance <\/a>states that the coverages shown are subject to all terms, exclusions, and conditions of the actual insurance policies. This makes it easy to determine what types of insurance you have, how much coverage you have, and more. An ACORD certificate of insurance usually includes the following information:<\/p>\n\n\n\n