Have you been asked for an ACORD 28 Evidence of Commercial Property Insurance? A Certificate of Insurance form is a document that provides information about insurance policies to third parties – but is not an insurance policy.
As a small business owner, or anyone with a stake in the commercial arena, there is a pressing need for you to insure your assets. There are no shortage of misfortunate events and accidents that can happen when you have a business.
And as such, there are many interested parties who require that your business property has the adequate insurance protection.
That is what makes a ACORD 28 Evidence of Commercial Property Insurance such a useful tool.
This form provides a coverage statement for mortgagees, additional insureds, and loss payees who provide mortgages or loans on real property or business personal property insured under a commercial insurance policy and are named in the policy.
Who Uses an ACORD 28?
When banks make loans secured by real estate, they sometimes require the borrower to provide proof that the they enough property insurance, to pay off the loan, in case the improvements are destroyed by fire or other perils. Loan servicers also want to be sure the business has a ACORD 28 Evidence of Commercial Property Insurance because their contracts typically require them to confirm the existence of property insurance – but the large amount of loans that they service makes it hard for them to read through every policy.
At the top of the ACORD 28 Evidence of Commercial Property Insurance, the following disclaimer in printed:
THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST.
This was added on an update to the form to be clear that the ACORD 28 only offers information about the coverage in place – and nothing beyond. So in order to gain the benefits of the certain rights and coverage extensions, the bank or servicers must ensure that proper endorsements are issued and attached to the underlying policy.
More On Certs
ACORD 28 Evidence of Commercial Property Insurance – The Bottom Line
We hope this article on ACORD 28 Evidence of Commercial Property Insurance has been informative. The form is standard for all 50 states, and pretty much work the same wherever you go. The certificate of insurance is a snapshot, it covers only what is in the plan when you ask for the certificate, nothing before or after. So, you have to make sure the one you have is fairly up to date with your insurance policy. Just ask your insurance agent or representative for one, and they should be able to get you one pretty quickly.