Understanding ACORD 25 Certificate of Insurance Compliance
The ACORD 25 Certificate of Insurance (COI) is the standard document utilized across the United States, United Kingdom, Canada, and Australia to verify that an independent contractor, vendor, or commercial tenant holds mandatory insurance policies. Failing to properly audit an ACORD 25 leaves general contractors and project owners directly exposed to catastrophic third-party liability claims.
Critical Audit Checkpoints on Every ACORD 25
- Commercial General Liability (CGL) Limits: Standard corporate master services agreements require at least $1,000,000 Each Occurrence and $2,000,000 General Aggregate.
- Additional Insured Endorsement (CG 20 10 / CG 20 37): Verify that the Certificate Holder is explicitly named as an Additional Insured on an ongoing and products/completed operations basis.
- Waiver of Subrogation (WOS): Prevents the vendor's insurer from suing your business to recover claim payouts.
- Primary and Non-Contributory: Guarantees the subcontractor's policy pays first without seeking contribution from your own general liability policy.
- Policy Expiration Dates: A COI is invalid if any policy lapses during active project operations. Policies expiring in fewer than 30 days must trigger renewal notices.
- Carrier Financial Strength: Ensure the underwriting carrier carries an AM Best Rating of A- (Excellent) or higher with a Financial Size Category of VIII or greater.