How to Read a Certificate of Insurance

The ACORD 25 is a standardized one-page form your agency issues on behalf of a policyholder. It sums up the key elements of one or more policies in a format contractors, property owners, and lenders can read fast.

It is a summary, not a policy. The form states that it is issued as information only and does not amend, extend, or alter coverage. It reports selected policy information as of the issue date, but it does not establish coverage or show every exclusion and endorsement. Those answers live in the policy documents.

The upper-left corner names the producer, meaning the agency or brokerage that issued the certificate. The producer is not the insurance company. Use the listed contact details to ask about policy information or supporting endorsements.

Call the producer if a limit is too low, a policy has expired, or a required endorsement appears to be missing. For important contracts, verify unfamiliar or inconsistent certificates directly with the producer.

The insured section names the named insured — the legal entity that bought the coverage. Match it to the legal name in your contract. If your agreement is with Martinez Plumbing LLC but the certificate reads Martinez Plumbing, you may not be looking at the same entity.

Below that, the insurer section lists the actual carriers, each tagged with a letter code that maps to the coverage rows below. Every carrier also shows an NAIC number — the National Association of Insurance Commissioners identifier. Use it to confirm the carrier is licensed in the relevant state.

The body of the form runs by coverage type — rows for General Liability, Automobile Liability, Umbrella or Excess Liability, Workers Compensation, and more. Each shows the policy number, effective and expiration dates, and limits.

An expired certificate does not prove current coverage. Confirm that each policy is active on the contract start date and remains active through the expected completion date.

Limits earn a field-by-field check against your contract schedule. General Liability shows four: each occurrence, general aggregate, products and completed operations aggregate, and personal and advertising injury. A contract requiring $2 million per occurrence calls for a different structure than the common $1 million per occurrence form. Workers Compensation shows Employer's Liability limits separately. Confirm each against your subcontract requirements.

Below the coverage grid sits the Description of Operations / Locations / Vehicles box — a free-text area where the producer notes project-specific requirements, endorsement claims, and special conditions. It deserves far more attention than it gets.

A well-filled box confirms three things: additional insured status on a primary and non-contributory basis, waiver of subrogation, and notice of cancellation. Each ties back to a real policy provision.

Example scenario: A property management company requires vendors to name the property owner as an additional insured. A vendor hands over a certificate with the property owner listed as certificate holder — but the description box says nothing about additional insured status. A loss happens. The carrier denies the tender because no additional insured endorsement exists in the policy. The certificate didn't create the endorsement. An empty description box, when your contract requires specific endorsements, is your cue to request a revised certificate.

The lower-left box names the certificate holder, meaning the party receiving the document. That status does not extend coverage or automatically provide cancellation notice. Any notice rights depend on the policy or endorsement.

Coverage extends only when an additional insured endorsement is actually attached to the policy. A general contractor who spots their name in the holder box may assume they're protected. Whether they are turns on the policy endorsements, not the holder field. For certificate requests and endorsement management, email service@blisins.com.

Review the certificate in a consistent order. Match the named insured to the contract, note the producer, and identify each insurer. Then check policy dates, compare limits with the contract, and read the description box in full.

If something does not match, ask the insured to contact their producer. A policy change may require insurer approval before a revised certificate can be issued. Confirm that every referenced endorsement exists in the policy. BLIS clients can request certificates at service@blisins.com.