How to Confirm the Limits of an Insurance Policy on an ACORD Form
The Association for Cooperative Operations Research and Development (ACORD) was founded in the 1970s to simplify the process of proving insurance coverage to a third party. That’s where ACORD Forms were born.
An ACORD form is a certificate of insurance that summarizes an insurance policy on a single page. The “ACORD 25″ form supplies evidence of liability insurance, such as general liability, workers’ compensation, and professional liability. It essentially proves that you have an active insurance policy.
How to Review the Scope of a Policy Using an ACORD Form
ACORD forms allow a third party to review critical insurance policy data quickly. ACORD forms not only standardized the documents in the industry. They also defined the data that should be used to prove the existence of a policy.
All ACORD forms include:
- Policy number and policy producer
- Types of insurance coverage and limits
- Insured’s name
- Policy effective & expiration dates
It is essential to review each point detailed above to ensure the form and the policy it’s detailing are legitimate. If any information is missing, the form is probably invalid. To review the scope of a policy on a standard ACORD 25 form, you need to look on the 4th row on the right side of the form, while on the left, there is a column for types of insurance and policy numbers. Other key points include certificate holder, cancelation, and producer. It is also important to ensure the producer is a verified insurance company.
ACORD certificates can help prove that you are protected against claims of:
- Property Damage
- Injuries
- Incomplete or substandard work
An ACORD certificate of insurance is not an insurance policy. It simply certifies that you have an insurance policy to protect you and/or your employer
Does Every Certificate of Insurance Come from ACORD?
No. There are various types of Certificates of Insurance and it’s not unheard of for companies to use another type of form.
ACORD Forms are the industry standard by which insureds prove Certificates of Insurnace. In theory, proof of insurance shown in an ACORD form provides an added layer of authenticity. An ACORD form is a proof of insurance that provides an added layer of authenticity.
The ACORD stamp is a symbol of trust in the insurance industry.
Does ACORD Have Other Certificate of Insurances?
Yes. The Liability Certificate of Insurance (ACORD 25) is just one of the many certificates ACORD standardized. Some other commonly used forms are:
- ACORD 20: Certificate of Aviation Liability Insurance
- ACORD 21: Certificate of Aircraft Insurance
- ACORD 22: Intermodal Interchange Certificate of Insurance
- ACORD 23: Vehicle or Equipment Certificate of Insurance
- ACORD 24: Certificate of Property Insurance
- ACORD 27: Evidence of Personal Property Insurance
- ACORD 28: Evidence of Commercial Property Insurance
Why Are Certificates of Insurance Important?
Proof of insurance gives peace of mind to employees and employers. If an insurance claim is made, everyone is protected, this is why Certificate of Insurances are often required. No company or individual will work with someone who is uninsured. When working with subcontractors, there is a potential for liability, and you should always know that active insurance policies are in place.
Certificate of Insurance Tracking Software is one way to better manage Certificates of Insurance. Request a SmartCompliance demo and see for yourself.
