There are three standard forms of insurance certificates from ACORD, the industry-supported organization that is charged with standardizing certificates of insurance. Although only three of ACORD’s more than 300 forms are certificates of insurance, they account for more than 10 percent – or 6 million – of the printed forms they issue.
The three ACORD forms are: the Certificate of Liability Insurance (ACORD 25-S); Certificate of Property Insurance (ACORD 24); and the Evidence of Property Insurance (ACORD 27). Each form has its own use.
The ACORD 25-S proves liability coverage, and is used to show a concerned party that another party has liability insurance in place. A simple example of the use of ACORD 25-S is that of a building owner needing to verify liability coverage of a contractor prior to the contractor beginning work.
The ACORD 24 is the property version of the 27-S and is used as evidence that appropriate property coverage is in place. Form 24 might be used by a building tenant who is required to maintain property coverage on leased premises.
ACORD 27 is for when the certificate holder has interest in the covered property, such as a lien holder or mortgagee. This form provides an assurance for mortgagees, additional insureds and loss payees that the property is properly insured.
The certificate of insurance is merely evidence of insurance coverage. It is not a policy, nor can it be relied on as a policy. It is not coverage itself.