What is an ACORD Certificate of Insurance?
An ACORD certificate of insurance (COI) is an official document that summarizes essential policy information, including types of coverage, effective dates, and policy limits. ACORD COIs can be requested by landlords, mortgage companies, equipment lessors, and clients as proof of insurance coverage.
The Association for Cooperative Operations Research and Development (ACORD) publishes the standard forms used by brokers, agents, and others to issue COIs. Because these forms are important for doing business, the experienced team at Progressive Commercial makes this process easy. Depending on your policy, you can call us or request a COI online.
Is an ACORD COI the same as a COI?
Yes, an ACORD certificate of insurance is a standardized type of COI. It may be what you get when you request proof of insurance. Not all COIs use the ACORD format, but they're a popular choice because they're widely recognized and easy to work with.
Types of ACORD COIs
ACORD publishes a few different COI forms. The most common for small businesses are the ACORD 25 Certificate of Liability Insurance and the ACORD 28 Evidence of Property Insurance.
ACORD 25 Certificate of Liability Insurance
Many small businesses carry some form of liability insurance, such as general liability. An ACORD certificate of liability includes standard information about your insurance policy, such as:
- Type of coverage
- Policy number
- Start and end dates
- Limits by occurrence
- Type of claim
For example, the ACORD 25 COI could itemize policy limits for damage to rented premises, medical payments, and personal injury. It could also include information about your commercial auto liability, professional liability, and workers' compensation coverage.
ACORD 28 Evidence of Commercial Property Insurance
The ACORD 28 is an evidence of insurance (EOI) form that serves a similar purpose to a COI. If you're leasing commercial space, your landlord may request an EOI as proof of commercial property insurance. This document summarizes coverage for:
- Buildings
- Business property
- Other commercial property risks
Do I need an ACORD certificate of insurance?
Yes, you'll probably need an ACORD COI if you work with other companies. COIs show your partners and clients that you have business insurance coverage in case something goes wrong, like a lawsuit, injury, or property damage.
Here are some common situations where you might need an ACORD COI:
- Leasing commercial space: Landlords can require tenants to provide proof of insurance to make sure the property is protected against potential damages.
- Partnerships and contracts: When entering into business agreements, other companies may request a COI to verify that you have adequate coverage to mitigate risks.
- Equipment leasing: The company you lease from may need a COI to confirm the equipment is covered in case of loss or damage.
- Construction projects: General contractors and project owners request COIs from subcontractors to check that everyone on the job is insured.
- Financial transactions: Banks might need a COI as part of the loan process to protect their interests.
How to get an ACORD certificate of insurance
With Progressive Commercial, getting a free COI is simple and straightforward. Request one by calling us or logging into your online account. Our business experts are here to help you every step of the way, making sure you have the necessary documentation when you need it.
