How to Read a Certificate of Insurance (ACORD 25), Box by Box

TSM Insurance

2 hours ago

8 min read

A certificate of insurance (COI) is a one-page summary of someone's insurance. To read one properly, check five things: who is insured, which insurers and policies, what limits apply, when coverage runs, and what the Description of Operations box claims about endorsements. Then remember that the certificate itself grants nothing. It reports on a policy, typically general liability insurance, auto, umbrella and workers' comp, and the policy controls.

The standard form for liability coverage is the ACORD 25, Certificate of Liability Insurance. This guide walks through it box by box, using the current 2025/12 edition, and lists the red flags we see most often.

If you need to request a certificate, start with our certificate of insurance request template.

The disclaimer: what a certificate is not

The top of every ACORD 25 carries a block of capital letters most people skip. It's the most important part of the form. The 2025/12 edition says the certificate:

is "issued as a matter of information only and confers no rights upon the certificate holder";
"does not affirmatively or negatively amend, extend or alter the coverage afforded by the policies below"; and
"does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder."

A second box, marked IMPORTANT, adds that if the certificate holder is an additional insured, the policy "must have ADDITIONAL INSURED provisions or be endorsed," and that if subrogation is waived, "certain policies may require an endorsement." A statement on the certificate "does not confer rights to the certificate holder in lieu of such endorsement(s)."

California law requires this kind of wording. Insurance Code §384 says a certificate of insurance provided as evidence of insurance, in place of a copy of the policy, must contain statements (or words to the same effect) that it "is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein," and that the insurance is subject to all the policies' terms, exclusions and conditions. The section doesn't apply to surplus line broker certificates.

Bottom line: a certificate is evidence. If you need rights under someone else's policy, you need the endorsement.

Section by section

1. Date

Top right. The date the certificate was issued. A certificate is a snapshot: accurate that day, silent about tomorrow. An old date on a "current" certificate is a reason to ask for a fresh one.

2. Producer

The insurance agent or broker who issued the certificate, with contact name, phone and email. This is who you call to verify the certificate. Use the contact details from the agency's own website, not just the ones printed on the form.

3. Insured

The business the policies cover. The name must match the legal entity on your contract exactly: "Smith Construction" and "Smith Construction Inc." are different entities. Watch for DBAs, missing "LLC" or "Inc.", and a sole proprietor's personal name where you expected a company.

4. Insurer(s) affording coverage

Up to six insurers, lettered A through F, each with its NAIC number (the National Association of Insurance Commissioners company code). The letters link each insurer to the policy lines below in the INSR LTR column.

The certificate doesn't show a financial strength rating. If that matters to your contract, look the carrier up separately. Also note whether the carrier is admitted in California or a surplus lines insurer. Either can be acceptable, but you should know which.

5. Certificate number and revision number

Used by the agency to track versions. If you receive a revised certificate, the revision number should change.

6. The "This is to certify" box

States that the listed policies have been issued to the insured for the policy period shown, and that, notwithstanding any contract, the insurance is subject to all the policies' terms, exclusions and conditions.

What changed in the 2025/12 edition: this is the box ACORD revised. It used to end with "LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS." The 2025/12 edition adds an asterisk to that sentence and a new one:

"LIMITS SHOWN ARE INCLUSIVE OF AMOUNTS REQUESTED BY THE CERTIFICATE HOLDER AND MAY NOT REFLECT POLICY LIMIT AMOUNTS IN EXCESS OF THOSE REQUESTED."

In practice, the limits on a 2025/12 certificate may show what you asked to see (for example, $1,000,000), not necessarily the full limit of the policy. ACORD has described the change as clarifying existing practice and "permissive, not mandatory." Certificates on the older 2016/03 edition are still in circulation. You can tell which edition you have from the footer at the bottom left.

7. Coverages grid

Each row is a policy. Left to right, the columns are:

Column	What it means	What to check
INSR LTR	Which insurer (A–F) writes this policy	Matches an insurer above
TYPE OF INSURANCE	GL, auto, umbrella/excess, workers' comp	All required lines are present
ADDL INSD	"Y" if additional insured status is reported on that policy	Required for your contract? Ask for the endorsement.
SUBR WVD	"Y" if a waiver of subrogation is reported on that policy	Required on GL, auto and WC? Ask for the endorsements.
POLICY NUMBER	The actual policy number	Not "TBD," "pending" or blank
POLICY EFF / EXP	Effective and expiration dates	Covers your full contract term
LIMITS	Dollar limits for that line	Meets or exceeds your contract

8. Commercial general liability

Limit	Meaning
Each occurrence	The most the policy pays for one occurrence
Damage to rented premises	Limited coverage for damage to premises rented to the insured
Med exp	Medical payments to one person, regardless of fault
Personal & adv injury	Libel, slander, wrongful eviction and similar claims
General aggregate	The most the policy pays in the policy period (excluding products-completed operations)
Products – comp/op agg	Separate aggregate for products and completed-work claims

Also check:

Claims-made or occur. Most CGL policies are occurrence. If "claims-made" is checked, look for a retroactive date and read our guide to claims-made vs occurrence.
Gen'l aggregate limit applies per: policy, project or location. On significant projects, contracts often require per project, so other jobs' claims can't use up the limit available for yours.

9. Automobile liability

Usually a combined single limit per accident. The boxes show which autos are covered: any auto, owned autos only, scheduled autos, hired autos only, non-owned autos only. If the vendor's employees drive their own cars to your site, "hired" and "non-owned" matter. See hired and non-owned auto. A contract requiring "any auto" isn't met by "scheduled autos" alone.

10. Umbrella / excess liability

Each occurrence and aggregate limits, whether it's an umbrella or an excess policy, occurrence or claims-made, and any deductible or retention. The certificate doesn't show which underlying policies the umbrella sits over. If your contract requires it to cover GL, auto and employer's liability, confirm that with the producer. See commercial umbrella vs excess liability.

11. Workers' compensation and employers' liability

Per statute is checked for statutory workers' comp benefits.
Employers' liability limits: each accident, disease – each employee, disease – policy limit.
Any proprietor/partner/executive officer/member excluded? If yes, those owners aren't covered. That can be legitimate, but it matters if an owner will be doing the physical work on your project.

If a California contractor has no workers' comp, ask why. Some licensees file an exemption with CSLB certifying they have no employees, though certain classifications can't. Check the license record. Our guide to CSLB license bond vs liability insurance explains what CSLB does and doesn't require.

12. Description of operations / locations / vehicles

The free-text box. This is where the producer describes the project and reports additional insured status, waiver of subrogation and primary and non-contributory wording, often naming endorsement forms (CG 20 10, CG 20 37, CG 20 01, CG 24 04). An ACORD 101 Additional Remarks Schedule may be attached if more space is needed.

This is where certificates most often fall short of the contract. Compare it line by line with your contract's insurance section.

13. Certificate holder

The party receiving the certificate. It should be you, with your exact legal name and address. Being certificate holder gives you a copy of the certificate. It doesn't make you an additional insured.

14. Cancellation

The current wording: "Should any of the above described policies be cancelled before the expiration date thereof, notice will be delivered in accordance with the policy provisions." In other words, you're promised notice only if the policy itself provides it to you, which standard policies usually don't for certificate holders. If continuous coverage matters, track expiration dates yourself and request renewals.

15. Authorized representative

A signature from the producer. A certificate with no signature, or one the vendor obviously filled in themselves, needs verification.

Received a certificate and not sure it meets your contract? TSM is an independent agency — we compare carriers for you. Call (209) 524-6366 (Modesto) or (530) 221-3031 (Redding).

Red flags on a certificate of insurance

Red flag	Why it matters
Insured name doesn't match the contract	Coverage may belong to a different entity
Expired or soon-expiring dates	Proves nothing about coverage during your work
Policy number blank, "TBD" or "binder"	Coverage may not be finalized
"Y" in ADDL INSD with no endorsement available	Status may not exist; the certificate can't create it
Description box says "per written contract" with no contract in place	Blanket endorsements usually require a written contract signed before the loss
Limits exactly match your request on a 2025/12 form	May be the requested amount, not the full policy limit. Not a problem, just know what it means
Gen'l aggregate "per policy" on a large project	Other jobs' claims can exhaust the limit
Auto shows "scheduled autos" only	Employee-owned and rented vehicles may not be covered
WC owner exclusion marked "Y"	Working owners aren't covered
Edited fonts, missing producer info, sent by the vendor not the agent	Possible altered or fake certificate. Call the producer to verify.

How to verify a certificate

Call the producer using contact information you find independently, and confirm the policy numbers, dates and endorsements.
Ask for the endorsements that the certificate reports: additional insured, waiver of subrogation, primary and non-contributory.
For California contractors, check the CSLB license record. It shows workers' comp status and, for LLCs, liability insurance on file. Under Business and Professions Code §7071.19, LLC licensees must carry liability insurance with an aggregate limit of at least $1,000,000 (plus $100,000 per additional person over five on the personnel of record, up to $5,000,000), and the insurer must report the policy to CSLB.
Set a reminder 30 days before each expiration date.

Homeowners checking a contractor can use our simpler verifying a contractor's insurance guide.

FAQs

What is an ACORD 25?

The standard industry form used as a certificate of liability insurance. It summarizes general liability, auto, umbrella/excess and workers' compensation/employers' liability coverage for a business. The current edition is 2025/12.

What changed on the new ACORD 25 form?

The 2025/12 edition added a sentence to the certification box: "Limits shown are inclusive of amounts requested by the certificate holder and may not reflect policy limit amounts in excess of those requested." The limits shown may be the amount you asked for, not the full policy limit.

What does "ADDL INSD" mean on a certificate of insurance?

It's the additional insured column. A "Y" means the producer is reporting that the certificate holder (or another party) has additional insured status on that policy. Ask for the endorsement to confirm it.

What does "SUBR WVD" mean?

Subrogation waived. A "Y" means a waiver of subrogation is reported on that policy line. As with additional insured status, the actual waiver comes from the policy or an endorsement.

Does a certificate of insurance prove someone is insured?

It's evidence that policies existed on the date it was issued, but it doesn't amend the policy or guarantee coverage. California Insurance Code §384 requires certificates to say so. Verify with the producer for anything important.

Will I be notified if a vendor's policy is canceled?

Not necessarily. The ACORD 25 says notice will be delivered "in accordance with the policy provisions," which usually doesn't include certificate holders. Track expiration dates yourself.