Proof of insurance for a business is most commonly a Certificate of Insurance (COI) - specifically, an ACORD 25 form, which is the standardized document used across the US commercial insurance industry. It summarizes the insurance coverage a business has in effect at the time of issuance.
But there's an important distinction: a certificate of insurance is evidence of coverage, not a guarantee of it. Understanding what the certificate does and doesn't prove is essential for anyone collecting it.
What a Certificate of Insurance (COI) Shows
The standard ACORD 25 form contains:
Insured's information: The business that holds the policies - their legal name, address, and contact information for their insurance broker.
Coverage summary: A list of each active policy type with corresponding policy numbers, coverage limits, and effective/expiration dates. Common lines listed:
- Commercial General Liability (CGL)
- Workers' Compensation and Employers Liability
- Commercial Auto Liability
- Umbrella/Excess Liability
- Other lines as applicable (professional liability, marine, etc.)
Certificate holder: The party that requested the certificate. Being a certificate holder generally entitles you to receive notification of policy cancellation - it does not give you coverage rights.
Additional insured designation: If the requesting party has required additional insured status, this is noted in the "Description of Operations" section and should be backed by a policy endorsement.
Special conditions: Waivers of subrogation, cancellation notice requirements, and other contractual provisions may be noted here.
What a COI Does NOT Prove
What a COI Proves vs What It Does Not
This is the critical part most people miss.
A COI does not prove coverage is currently in force. It proves coverage was in force when the certificate was issued. Policies can lapse, be cancelled, or have material changes after a certificate is issued.
A COI does not prove the limits are adequate for your specific requirements. The certificate shows the policyholder's limits. It does not confirm whether those limits match your contractual requirements.
A COI is not a legal guarantee from the insurer. The certificate contains a disclaimer: "This certificate is issued as a matter of information only and confers no rights upon the certificate holder." The insurer is not party to the certificate - only to the underlying policy.
A COI is not a substitute for the policy itself. For specific coverage questions, the actual policy document controls. Certificates can contain errors or omissions.
Other Forms of Business Proof of Insurance
Beyond the ACORD 25 certificate, businesses may be asked to provide:
Declarations page (Dec page): The first page of the actual insurance policy. It lists the named insured, coverage amounts, policy period, and premium. More authoritative than a certificate, but less commonly provided.
Endorsement forms: Specific endorsements (e.g., additional insured endorsements, waiver of subrogation endorsements) attached to the policy. These are the documents that actually create the rights described in the certificate. When additional insured status is critical, requesting the actual endorsement form provides more certainty than the certificate description.
Binder: A temporary evidence of coverage issued before the formal policy is delivered. More commonly used in property insurance. See our article on insurance certificate vs binder.
Direct carrier verification: For high-stakes relationships, some organizations call the insurer directly to verify policy status using the policy number from the certificate. This provides real-time confirmation that the policy is active.
Business Proof of Insurance: What You Need and When
Situation What to Collect Standard vendor onboarding ACORD 25 certificate High-value or high-risk contracts Certificate + additional insured endorsement Contract requiring specific limit Certificate verified against contract Question about current policy status Direct carrier verification Construction project (completed operations) Certificate + CG 20 37 endorsement
How to Read a Certificate of Insurance
The ACORD 25 form is standardized. Key fields:
- Upper left: Insured's broker contact information
- Insured box: Legal name and address of the policyholder
- Coverage grid: Policy type, carrier, policy number, effective date, expiration date, limits
- Description box: Additional insured designation, waivers, and special conditions
- Certificate holder box (bottom): Who receives the certificate (not necessarily additional insured)
When reviewing: start with the expiration dates (are they current?), then check limits against your requirements, then check the description box for additional insured and waiver language.
When a Certificate Is Enough - and When It Isn't
A certificate is sufficient for standard vendor relationships where:
- Coverage requirements are simple and the limits on the certificate clearly satisfy them
- Additional insured requirements are standard and clearly reflected
- You have no reason to doubt the certificate's accuracy
A certificate is not sufficient when:
- The additional insured language is ambiguous or potentially incorrect
- The limits appear inadequate for your requirements
- You have reason to believe the underlying policy may have changed since the certificate was issued
- The relationship creates significant liability exposure where coverage verification is critical
In high-stakes situations, the additional step of requesting the actual endorsement form or verifying directly with the carrier is worth the effort.
Related Resources
- How Do I Know If a COI Is Valid
- What Is a COI Request
- Insurance Certificate vs Binder
- Difference Between Insured and Additional Insured
Bramble verifies business proof of insurance at the clause level - comparing what your vendors' certificates show against what your contracts actually require. Book a demo at getbramble.com.