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Certificates of Insurance (COIs) are critical documents used in many industries to verify that a party has the appropriate insurance coverage in place. One of the most widely used formats for these certificates is the ACORD Form. If you've ever wondered what an ACORD Form COI is or why it matters, you're in the right place.
An ACORD Certificate of Insurance (COI) is a standardized document used to provide proof of insurance coverage. It summarizes the essential details of a policy—such as coverage types, limits, effective dates, and the insured party—in a one-page form.
The term ACORD stands for the Association for Cooperative Operations Research and Development, a nonprofit organization that sets data and form standards for the insurance industry. ACORD forms ensure consistency and reliability when sharing insurance information between insurers, policyholders, and third parties like vendors or clients.
ACORD COIs are often required in business contracts and partnerships to:
Verify that vendors, contractors, or suppliers carry adequate insurance. Protect against liability risks. Ensure compliance with legal or contractual obligations. Speed up onboarding or payment approvals.
They don’t provide coverage themselves but serve as a snapshot of active insurance policies.
An ACORD 25 (the most common certificate for liability insurance) typically includes:
Insured party name and contact info Producer (agent/broker) contact Insurance company names Policy numbers and types of coverage (e.g., General Liability, Auto, Workers' Comp) Effective and expiration dates Coverage limits Certificate holder details Description of operations (free-form field for notes or contract references) Authorized signature
Using the ACORD format ensures consistency across insurers, industries, and platforms. Whether you're onboarding a new vendor or verifying compliance, the standardized layout helps automate and streamline the review process.
What does “ACORD” stand for?
ACORD stands for Association for Cooperative Operations Research and Development. It is the organization that develops standardized insurance forms, including COIs.
Is an ACORD COI a legal contract?
No, a COI is not a contract or policy. It’s a summary of coverage and doesn’t provide any legal rights to the certificate holder. Always refer to the actual policy documents for full details.
How long is a Certificate of Insurance valid?
COIs are valid only for the policy term listed on the form. Once a policy expires or is canceled, the COI is no longer valid unless updated by the insurance provider.
What’s the difference between a COI and an insurance binder?
An insurance binder is a temporary contract of insurance coverage, while a COI is merely proof that coverage exists. A binder offers temporary coverage; a COI does not.
Can I request a COI from a vendor?
Absolutely—and you should. If you're hiring contractors, subcontractors, or third-party vendors, requesting a COI ensures they have the insurance coverage necessary to protect your business. Automated COI monitoring systems such as CertFocus by Vertikal can be used to instantly validate COIs within seconds of receipt. Hawk-I a component within CertFocus extracts coverage date from COIs and automatically compares it coverage requirements found in vendor contracts.
ACORD Certificates of Insurance are essential tools for verifying insurance coverage quickly and efficiently. By understanding what they include and how they work, you can better manage third-party risk, improve compliance, and streamline business operations.
Want to learn more about automated COI tracking? Check out our blog post on straight-through COI processing.
See how Vertikal can transform your 3rd party risk management strategy.
Contact Vertikal today or email marketing@vertikalrms.com to schedule a live free demo of CertFocus. Discover the difference that instant, intelligent COI evaluation can make for your business.
