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Have you been asked for an ACORD 25 Certificate of Liability Insurance? A Certificate of Insurance form is a document that provides information about insurance policies to third parties – but is not an insurance policy.

ACORD 25 Certificate of Liability Insurance

Whether you’re the one who needs the form, or you are looking at someone else’s, the ACORD 25 Certificate of Liability Insurance shows that an individual or business has liability insurance.

Imagine that your business wants to remodel the building they are in. When choosing a contractor, you should ask to see the ACORD 25 form because it shows that they have insurance to cover any mistakes should something go wrong in the contracting work.

On the flip side, a customer might want to see your Certificate of Insurance form to prove that you are liable if something bad were to happen while working with them. ACORD 25 is a simple certificate that proves insurance coverage is being held by a business or individual.

They are often requested by a third party, and insurance companies can send it direct to the requester or a business could show them a copy of it. It’s mostly used for casualty reasons in the event of a mistake or accident.

Who Needs It

Anyone who owns a business should have access to an ACORD 25 Certificate of Liability Insurance handy for when customers ask for it. It’s important to have this form to prove that your business is covered in the event there is an at-fault accident or mistake. Depending on your line of work, the coverage you have may vary. As long as there is some type of liability insurance included in your policy, your insurance company can draft up an ACORD 25 for you to keep on hand. They can also send over an official copy to any third party that requests it.

Required Form

It is a very basic form. For those who want more knowledge about what the policy you hold contains, they’ll need to request more information. The sole purpose of this form is to provide evidence or proof that there is some type of general liability insurance carried by the company. On the form, your business name and contact info is included. Then, all insurance companies that cover your business are listed with their contact information. There is also a spot to check whether or not there have been liability claims that were filed in the past. The limits of coverage are also listed in dollar amounts because some customers require a certain amount of coverage to be held. Besides that, benefits and other things are not listed on the certificate of insurance.

When to Use

This form is unique because it isn’t just used when there is an accident or mistake that has happened. Before someone works with you, they’ll probably request to see your ACORD 25 because it proves you can cover the expense if something were to go wrong. This is especially important with big business decisions that might cost thousands of dollars. The last thing any business wants is to get involved with another business that is not liable if damage occurs on the job.

More On Certs

You can find more certificates on the ACORD forms list, and to learn more you can check out understanding ACORD certificate of insurance.

ACORD 25 Certificate of Liability Insurance – The Bottom Line

We hope this article on ACORD 25 Certificate of Liability Insurance has been informative. This form proves that you are liable in the case of damage to their business. It shouldn’t be used as a contract or to prove benefits, but it can provide evidence that an insurance policy is held and currently in place.

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