ACORD 25 and 27 Forms: Complete Insurance Certificate Guide

ACORD forms pop up in every business relationship involving insurance, but most people have no clue what they’re looking at or why these specific forms matter so much. You get an ACORD 25 from a contractor and assume it means you’re protected, when the reality is that half the certificates floating around are missing important endorsements or contain meaningless conditional language that provides zero coverage.

Instead of being an insurance provider, ACORD is the organization that created the standardized forms everyone uses to prove insurance exists. Before ACORD standardization, every insurance company used different formats, which made comparing coverage impossible. Now, every contractor sends you the same ACORD 25 format, every lender wants the same ACORD 27 layout, and every business relationship depends on these forms to verify coverage.

This guide explains exactly what ACORD forms contain and when you need liability versus property verification. CertFocus by Vertikal RMS can help you process thousands of certificates of insurance forms automatically, using AI to catch missing endorsements and inadequate coverage.

What Is ACORD Insurance and Why Does It Matter?

ACORD isn’t actually insurance itself but rather the organization that creates standardized insurance forms used across the entire industry. ACORD stands for Association for Cooperative Operations Research and Development, and they’re the nonprofit group that developed the standard certificate forms you see everywhere in business. When people say “ACORD insurance,” they’re really talking about the standardized forms that ACORD created to make insurance verification easier.

ACORD standardization matters because it eliminates confusion and creates consistency across all insurance companies and business relationships. Before ACORD forms, every insurance company used different formats for certificates, which made it nearly impossible to compare coverage and understand what protection existed. Now, when you get an ACORD 25 certificate from any contractor, you get a certificate of insurance overview with coverage limits, effective dates, and endorsement information because the format is always the same.

This standardization saves businesses massive amounts of time and prevents costly mistakes that happen when people can’t understand insurance documentation. CertFocus by Vertikal RMS processes thousands of liability insurance certificates automatically because the standardized format allows AI systems to extract information consistently, regardless of which insurance company issued the certificate.

What Are ACORD 25 and ACORD 27 Insurance Forms?

ACORD 25 is the standard form for liability insurance, while ACORD 27 is for property insurance. ACORD 25 shows whether someone can pay for damage they cause to other people or property, whereas ACORD 27 shows whether someone has insurance to cover their own property if it gets damaged or stolen.

You’ll see these vendor COI forms all the time because pretty much every contractor relationship needs liability insurance verification. This form tells you if contractors have enough coverage to handle lawsuits, injuries or property damage that might happen during their work. It covers things like general liability, auto insurance, workers’ comp, and whether you’re added as additional insured for extra protection.

ACORD 27 forms don’t come up as often, but they’re huge when you’re dealing with real estate, equipment loans, or lease agreements. Banks want to see these before they’ll give you a commercial loan, and landlords use them to confirm that tenants have coverage for the building.

ACORD 25 Certificate of Liability Insurance

ACORD 25 forms show all the liability insurance coverage that protects against lawsuits, injuries, and property damage claims. This one-page form lists general liability limits, auto coverage, workers’ comp protection, and umbrella policies in a format that’s the same no matter which insurance company fills it out.

The ACORD 25 contains important information that determines your protection level when working with contractors. Here’s what you’ll find on every ACORD 25 certificate:

• General liability coverage limits for third-party bodily injury and property damage claims.
• Workers’ compensation coverage as required by state law, with policy numbers and effective dates.
• Commercial auto liability for vehicle accidents during business operations.
  Umbrella or excess liability providing additional coverage above standard policy limits.
• Additional insured endorsements specifying your protection level.
• Waiver of subrogation language preventing insurance company recovery actions.
• Policy effective and expiration dates confirming coverage timelines.

CertFoucs by Vertikal RMS automatically reads all this information from liability insurance certificates, catching missing endorsements or inadequate coverage before they become problems.

ACORD 27 Evidence of Property Insurance

ACORD 27 forms prove that someone has property insurance for their buildings, equipment, inventory, and business interruption coverage. Unlike liability certificates that focus on damage you cause to others, ACORD 27 covers damage to your own property from fires, theft, storms, or disasters. lenders, landlords, and equipment financing companies use these forms to confirm that borrowers or tenants have enough property protection.

The ACORD 27 contains detailed property coverage information that lenders and landlords need to verify adequate protection. This is what you’ll find on an ACORD 27 form:

• Building coverage limits for rebuilding or repairing the physical structure
• Business personal property protection for equipment, inventory, and business contents
• Business interruption insurance for lost income during property damage shutdowns
• Deductible amounts the policyholder pays before insurance coverage applies
• Special provisions like equipment breakdown, flood protection, or specific endorsements
• Policy effective effective and expiration dates
• Mortgagee or loss payee information for lenders with financial interest

How ACORD Forms Became the Industry Standard

ACORD forms became the industry standard because insurance companies, businesses, and brokers desperately needed a consistent way to communicate coverage information across different systems and relationships. Before ACORD standardization in the 1970s, every insurance company used its own certificate formats, which created confusion and errors that cost businesses time and money. The insurance industry recognized that standardized forms would eliminate miscommunication and streamline the entire verification process.

ACORD forms caught on because they solved real problems everyone dealt with every day. Insurance companies could process certificates faster, businesses could actually understand coverage, and brokers could work with multiple carriers using identical forms.

This is how the ACORD forms became standard:

• 1970: The ACORD organization was founded to create industry-wide data and form standards
• 1973: First standardized certificate forms introduced to replace company-specific formats
• 1988: ACORD 25 Certificate of Liability Insurance becomes the universal standard
• 1995: ACORD 28 Evidence of property Insurance gains widespread adoption
• 2000s: Electronic processing capabilities added to support digital certificate management
• 2010s: Enhanced forms accommodate new insurance products and endorsement types

What Information Is in ACORD 25 and ACORD 27 Forms?

ACORD 25 and ACORD 27 forms handle all contractor insurance documentation through specific sections that organize insurance information in a consistent, standardized layout that’s the same regardless of which insurance company issues them. Both forms follow logical layouts that put the most important information in predictable locations, which makes verification a lot faster and more reliable.

ACORD 25 Form Information and Sections

The ACORD 25 certificate organizes liability insurance information into clearly defined sections that show policyholder details, coverage types, limits, and special endorsements. Each section serves a specific purpose in documenting the liability protection that applies to your business relationship.

• Producer information: Insurance agent or broker contact details, including name, phone, fax, and email address
• Insured details: Complete name and address of the policyholder who owns the insurance policies
• Insurer information: Insurance company names and NAIC numbers for insurers A through F
• Policy numbers and effective dates: Unique policy identifiers and coverage periods for each insurance type
• Commercial general liability: Each occurrence, general aggregate, products/completed operations aggregate, and personal/advertising injury limits
• Medical expense coverage: Payment limits for immediate medical expenses, regardless of fault
• Damages to rented premises: Coverage limits for property damage to leased or rented locations
• Automobile liability: Combined single limit or separate bodily injury and property damage limits for any auto, owned, hired, or non-owned vehicles. The Insurance Institute for Highway Safety reports that 40,901 people died in motor vehicle crashes during 2023, which makes verifying auto liability coverage extremely important.
• Workers’ compensation: Statutory coverage with employers’ liability limits for each accident, disease per employee, and disease policy limit
• Umbrella or excess liability: Each occurrence and aggregate limits with deductible or retention amounts
• Description of operations: Written explanation of covered work activities, locations, vehicles, and special endorsements
• Certificate holder information: Name and address of the party receiving the certificate as proof of coverage
• Cancellation clause: Standard language about policy cancellation notice requirements

ACORD 27 Form Information and Sections

The ACORD 27 form organizes property insurance information to show coverage amounts, deductibles, and special provisions that protect physical assets and business operations. This form focuses on first-party coverage that protects the policyholder’s own property rather than third-party liability claims.

• Agency information: Insurance agent or producer contact details including phone, fax, email, agency code, and customer ID
• Company information: Insurance carrier name issuing the property coverage
• Insured details: Name and address of the property owner or policyholder
• Loan and policy numbers: Unique identifiers linking the evidence form to specific loans and insurance policies
• Policy effective and expiration dates: Coverage period sowing when property protection begins and ends
• Property information: Location and description of covered buildings, equipment, or business personal property
• Coverage information: Types of property coverage including basic, broad, or special form perils
• Amount of insurance: Coverage limits for buildings, contents, and other covered property types
• Deductible amounts: Out-of-pocket costs the policyholder pays before insurance coverage applies
• Perils insured: Specific risks covered, like fire, theft, wind, or other property damage causes
• Remarks section: Special conditions, endorsements, or additional coverage details
• Additional interest information: Names and addresses of parties with financial interest in the property
• Mortgagee or loss payee: Lenders or financing companies entitled to claim payments
• Cancellation clause: Standard language about policy cancellation notice requirements

When Do You Need ACORD 25 vs. ACORD 27 Forms?

You need ACORD 25 forms when verifying liability insurance coverage and ACORD 27 forms when proving property insurance exists. The choice depends on what type of protection you’re trying to verify and what your contracts or lenders require. Many situations actually require both forms because liability and property insurance serve as different purposes and protect against different risks.

Construction projects usually require both forms because you need ACORD 25 certificates from all contractors for liability protection, plus ACORD 27 forms to verify property coverage on buildings and equipment. For example, a restaurant renovation needs ACORD 25 from contractors doing electrical, plumbing, and construction work plus ACORD 27 showing property coverage for the building and equipment being renovated.

Commercial loans usually need ACORD 27 forms to protect the lender’s collateral interest while also requiring ACORD 25 forms from any contractors working on the property. A business buying a warehouse needs ACORD 27 to satisfy mortgage requirements and ACORD 25 from moving companies, security installers, and maintenance contractors working at the facility.

How Do I Verify an ACORD Certificate is Valid?

Verifying an ACORD certificate means checking that all required information is complete, current, and matches your contract requirements. You need to examine specific sections systematically rather than just glancing at the form to see if it looks official. With work injuries costing the U.S. economy $176.5 billion in 2023, according to the National Safety Council, taking time to properly verify certificate details protects your business from expensive liability exposure.

Start by confirming that the certificate holder section contains your exact company name and address as specified in your contracts. Check that policy effective dates overlap your project timeline and that coverage limits meet your minimum requirements. Each workers’ compensation claim averages $44,179, according to the National Safety Council, so confirming that you have adequate coverage limits on your ACORD certificates protects your business. The description section should contain any endorsements like additional insured status or waiver of subrogation that your contracts demand.

Follow this verification checklist to confirm that your ACORD certificate is valid:

Certificate holder information matches your company name exactly

Policy effective dates cover your

All required coverage types are listed with adequate limits

Additional insured endorsements are specifically stated, not conditional

Waiver of subrogation language appears if required by contract

Insurance company NAIC numbers match legitimate carriers

Producer information includes verifiable agent contract details

Certificate appears on official ACORD letterhead with proper formatting

All policy numbers and dates are filled in completely

What Makes an ACORD Form Invalid or Unacceptable?

ACORD forms become invalid when they contain incomplete information, expired coverage dates, missing endorsements, or questionable authenticity. These problems can easily go unnoticed until claims happen, leaving you without the protection you thought existed. With private industry reporting 2.6 million nonfatal workplace injuries in 2023, according to the Bureau of Labor Statistics, you can’t afford to rely on invalid certificates. Knowing what makes certificates unacceptable helps you catch problems before they create coverage gaps.

These are some of the most common ACORD form mistakes that can leave you without protection:

• Incomplete or missing policy information: Blank fields for policy numbers, coverage limits, or effective dates indicate the certificate wasn’t properly completed
• Expired or inadequate coverage dates: Policy periods that don’t cover your project timeline or have already expired provide no current protection
• Missing required endorsements: Certificates lacking additional insured status, waiver of subrogation, or other contract-required endorsements don’t meet your protection needs
• Conditional language instead of confirmations: Phrases like “additional insured if required” or “waiver may apply” indicate that the endorsements may not actually exist
• Incorrect certificate holder information: Wrong company names, addresses, or spelling errors can void your protection during claims.
• Suspicious formatting or authentication: Certificates that don’t follow standard ACORD layouts, contain obvious alterations, or come from unverifiable sources may be fraudulent

Can ACORD Forms Be Submitted Electronically?

Yes, ACORD forms can be submitted electronically through email, online portals, or automated systems that integrate directly with insurance company databases. Automated COI form processing through electronic submission has become the standard method for certificate delivery because it’s faster, creates automatic documentation trails, and reduces the risk of lost paperwork. Most insurance companies now generate certificates digitally and can deliver them within minutes of receiving requests.

Digital adoption varies significantly across insurance companies, with recent ACORD research showing that only about 25% of major insurers have truly digitized their operations, while more than half are still exploring digital applications.

Many insurance companies still rely on basic email and portal systems for certificate delivery, though larger carriers increasingly offer API integrations for automated processing. The insurance industry continues moving toward full digitalization, but progress remains uneven across different company sizes and market segments.

More businesses want automated certificate management because it eliminates manual work and catches problems faster. CertFocus by Vertikal RMS processes electronic certificates through all these channels, using Hawk-I technology to instantly verify compliance regardless of submission method.