Every business owner wants to avoid getting sued, especially if it’s because of the negligence of a vendor. As such, many companies make sure they only hire firms that have enough liability insurance to cover any property damage or injury they may cause. If you’re signing a contract with another company, you might be required to provide a copy of your certificate of liability insurance, which is also known as an ACORD insurance certificate.


What is ACORD Insurance?

ACORD stands for the Association for Cooperative Operations Research and Development. It is an international non-profit organization known for its standard setting work in the insurance industry. ACORD has a history of more than 50 years, and most of its work involves establishing documentation and data standards for insurance organizations (including carriers, reinsurers, brokers, agents, and software providers).


One of ACORD’s main responsibilities is to develop and distribute various reusable insurance documents. The organization provides many types of standardized insurance documents, from insurance certificates to state-specific documents, such as the Louisiana Property Supplemental Hurricane Loss Mitigation Questionnaire.


Reason Of ACORD’s Establishment

For most of the 20th century, insurance companies basically used their own form of insurance policies. This caused confusion among agents, brokers, and customers, and made life difficult for insurance companies themselves. In order to get rid of the chaos, companies jointly established ACORD in the 1970s. ACORD was authorized to create standard forms and documents that can be used by all companies and individuals in the insurance industry. One of these documents is the ACORD Insurance Certificate. Thanks to ACORD’s pioneering work, small business owners in the United States can now easily view their insurance documents and prove to their business partners and customers that they are financially responsible. Other important benefits of using ACORD certification documents include:


  • Document processing faster.
  • Well organised document validation.
  • Documents are up-to-date.


ACCORD FORM. What is this?

ACORD maintains a large library of standardized tables for the insurance industry, which can be used for multiple purposes. From the liability insurance certificate form (ACORD 25) to the workers’ compensation insurance application form (ACORD 130), the ACORD form provides standardization and consistency among carriers, brokers, and agents. Without the ACORD form, each insurance company might end up creating its own unique form, making it more difficult for companies, operators, and others to exchange data.


Why to use ACCORD forms?

The ACORD form is used by insurance companies, agents and brokers all over the world when dealing with customers and businesses. The ACORD standard is mainly used for the following reasons:


  • Standardization: ACORD continuously manages, maintains and updates a large standardized database of various insurance products and use cases. By making these forms follow a set of standards, it eliminates ambiguity in the underwriting process and allows the company to receive the same information and forms no matter which insurance company interacts with. It also enables insurance companies to conduct business more accurately because they handle standardized applications and communicate more effectively with customers, agents, and brokers.
  • Ease of use:  ACORD provides its members with access to its complete database of forms, which can be downloaded in various electronic formats or obtained through third-party software applications. Members can also be notified when the form is updated or modified.
  • International Recognition:  The ACORD form is recognized by companies and insurance companies all over the world. ACORD has more than 36,000 members worldwide, and you will find that most companies in the insurance industry trust the ACORD seal. In fact, companies and insurance companies usually specifically request ACORD forms by number, because these forms are almost everywhere in the industry.


Some commonly used ACORD Forms

Almost 90% of US companies that provide property and accident insurance use ACORD forms for their products and services. These forms are classified by number for easy management and use.


Some commonly used ACORD Forms are:


Certificate of Liability Insurance (25)


Evidence of Property (27)


Commercial Insurance Application (125)


Commercial General Liability Section (126)


Business Auto Section (127)


Workers’ Compensation (130)


Umbrella Section (131)


Commercial Auto (137)


Property Section (140)


Business Owners’ Application (160)


ACORD Certificate and its benefits.


ACORD Certificate ACORD stands for Liability Insurance Certificate Form (ACORD 25). This standard form contains all the basic information about your insurance coverage, including insurance type, insurance limits and insurance data. ACORD certificates can be issued upon request by the insurance company. As a business owner, you may be required to submit an insurance policy through an ACORD certificate. Alternatively, you can request an ACORD certificate from a supplier, contractor, or other third party. ACORD certification is widely recognized and helps provide business-friendly proof of insurance.


ACORD forms are similar to IRS forms in that they include pre-printed boxes and fields to highlight important insurance information. Using the same format for all insurers and agencies has the advantage of reducing ambiguity and increasing accuracy. If you can provide your customers with ACORD liability insurance, you can earn their trust and run your business more effectively and efficiently. Customers aren’t the only ones who can benefit from an ACORD certificate. These certifications are widely recognized around the world and are also a valuable resource for entrepreneurs. Contact your supplier, contractor or subcontractor for ACORD certification. If you don’t respond easily, chances are you won’t be insured because your insurance agent can easily prove it.

Get an insurance policy from ACORD to give you and your clients legal certainty. Make sure you can provide this certificate even if requested by the customer. Documents used as insurance cards do not require ACORD approval, but we recommend that you obtain an ACORD certificate if possible. Almost all insurers in this country use the safe and globally recognized ACORD certificate. There’s no reason it shouldn’t be perfect.


  • Standardization:  In light of ACORD’s data standardization efforts, each selected insurer should have access to the same insurance documents and information. Use standard ACORD documents to improve performance between your business and its business partners.
  • Trustworthiness: When your company issues ACORD certification, you can be confident that you are a confident company that meets the latest industry standards.
  • Faster validation and processing: The ACORD seal is a symbol of trust in the insurance industry, making it easier and faster to verify and process ACORD insurance certificates. It is also constantly updated.
  • Increased accuracy: If your insurer does not issue an ACORD certificate and form, the insurer may warn you that you must change your carrier. Standard ACORD documentation can be used to increase accuracy and avoid ambiguity. This way you get the same standard form from all your customers and avoid confusion for everyone involved.
  • Varied formats: ACORD documents are available in a variety of formats to meet specific business needs, including printable documents, PDFs, and electronic forms.