How to read an ACORD 25 certificate of insurance (and what to check)
If you hire subcontractors or vendors, you've seen the ACORD 25 — the one-page Certificate of Liability Insurance that agents issue to prove a business carries insurance. It's the most common certificate of insurance (COI) in the US, and it's easy to file one without checking whether it actually protects you.
This guide walks through each section of the form and the checks worth running every time one arrives.
The sections of an ACORD 25
Producer. The insurance agent or broker who issued the certificate, with contact details. This is who you (or your vendor) call when something on the certificate needs fixing.
Insured. The vendor's legal business name and address. It should match the company you contracted with — not an owner's personal name or a related entity.
Insurers affecting coverage. Up to six carriers, labeled A through F, with their NAIC numbers. Each coverage row below references one of these letters.
Coverages. The heart of the form. Each row is a policy type with:
- INSR LTR — which insurer (A–F) writes the policy
- ADDL INSD — marked when the certificate holder is an additional insured on that policy
- SUBR WVD — marked when the insurer waives subrogation against the holder
- Policy number, effective date and expiration date
- Limits — the dollar amounts of coverage
The standard rows are Commercial General Liability, Automobile Liability, Umbrella / Excess Liability, and Workers' Compensation and Employers' Liability. There's also a blank row for other coverage such as professional liability.
Description of operations / locations / vehicles. Free text the agent uses for project names, additional insured wording, or references to endorsements.
Certificate holder. Who the certificate was issued to — that should be your company, spelled correctly.
Cancellation. Standard language about notice if a policy is cancelled before it expires.
The checks to run on every certificate
| Check | What to look for | | --- | --- | | General liability limits | Each occurrence and general aggregate at or above your contract (often $1M / $2M) | | Auto liability | Combined single limit at or above your requirement, if the vendor drives on your jobs | | Umbrella / excess | Present and large enough if your contract requires it | | Workers' comp | Statutory coverage plus employers' liability limits, unless the vendor has a valid exemption | | Additional insured | ADDL INSD marked on general liability (and auto, if required) | | Waiver of subrogation | SUBR WVD marked where your contract requires it | | Certificate holder | Your legal company name | | Dates | Every required policy is in force today — and when the earliest one expires |
Two details trip people up most often:
- The earliest expiration date is the one that matters. A vendor's GL may renew in March while their workers' comp expires in November. Track every required policy, not just the first row.
- A certificate is informational only. The ACORD 25 itself states that it confers no rights and doesn't amend, extend or alter the policies. Additional insured status comes from an endorsement on the policy, so for high-risk work, ask for the endorsement too.
Keeping certificates current
Checking one certificate is easy. Keeping dozens of vendors current as policies renew throughout the year is where spreadsheets fall apart. That's the job Certy does: it reads each ACORD 25 automatically, checks it against your requirements, and emails vendors 30, 14 and 7 days before coverage expires — with a private link where they upload the renewal.