Lenders & Contracts · Insurance Term
ACORD 25 (Certificate of Liability Insurance)
Definition
The ACORD 25 is the standard one-page Certificate of Liability Insurance. It summarizes your liability, auto, umbrella and workers' compensation policies so a landlord, lender, tenant or client can see what coverage you have. It is proof of insurance, not the policy itself.
In Plain English
When a lender, tenant, property manager or contractor asks for a certificate of insurance on your liability coverage, they almost always mean an ACORD 25. It lists the agent, the named insured, the insurance companies, policy numbers, dates and limits. It also has a box describing operations or locations and a box for the certificate holder.
The form is informational. It cannot add coverage, add an additional insured, or change cancellation notice terms. Those rights come only from the policy and its endorsements. If a contract requires additional insured status or a waiver of subrogation, the endorsement must actually be on the policy; the certificate only reports it.
Property coverage is usually shown on a different form, the ACORD 28. Owners often need both: an ACORD 25 for the general liability and umbrella, and an ACORD 28 for the building.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a strip center owner signs a lease with a new tenant. The tenant's lease requires the owner to be an additional insured on the tenant's liability policy. The tenant's agent issues an ACORD 25 naming the owner as certificate holder and checks the additional insured box, and the owner asks for a copy of the endorsement to confirm it is on the policy.
Why It Matters for Texas Property Owners
Texas Insurance Code Chapter 1811 says a certificate of insurance does not amend, extend or alter the referenced policy, and it bars requiring a certificate that contains false or misleading information about the policy. So in Texas, an agent should not issue an ACORD 25 that promises more than the policy actually provides.
What to Watch For
- Check that the named insured on the certificate matches the entity named in your lease or loan.
- Confirm the policy dates are current and the limits meet the contract's requirements.
- If additional insured or waiver of subrogation status is required, ask for a copy of the endorsement, not just a checked box.
- Ask for a fresh certificate at every renewal; an old one shows expired coverage.
Common Questions
Does being listed on an ACORD 25 make me an additional insured?
No. Being the certificate holder only means you receive the certificate. Additional insured status comes from an endorsement on the policy itself.
How fast can I get an ACORD 25?
For an existing policy, an agent can usually issue one quickly, often the same day. If the request needs a new endorsement, it can take longer because the insurer must approve the change first.
Sources
- Texas Insurance Code §1811.152 (certificate does not change coverage)
- Texas Insurance Code §1811.054 (false or misleading certificates)
Last updated October 14, 2026 · Primesure editorial team · How We Write