ACORD certificate of liability insurance is a document that is used to prove you have liability insurance.
What is a certificate of liability insurance?
Also known as a certificate of insurance (COI) an ACORD certificate of liability insurance is a document that will prove you have commercial business liability insurance coverage. It’s used to summarize the major elements of your policy. This is assuring customers that your company is protected from risks. ACORD stands for Association for Cooperative Operations Research and Development.
Many business insurance companies will provide certificates of liability insurance for various business insurance polices, such as;
- General liability insurance
- Business owner’s policy (BOP)
- Commercial auto insurance
- Errors and omissions insurance (E&O)
- Professional liability insurance
- Workers’ compensation insurance
How does my business get a certificate of insurance?
Usually you can access this form online through the business insurance companies website. If you need help finding your certificate, you can either contact your agent or the business insurance company and request it.
Why does my business need certificate of liability insurance?
Getting sued due to vendor caused property damage can be devastating to a small business. Because of this business you do business with want to know companies they hire have liability coverage if there is property damage or bodily injury.
Some companies before signing a contract will want to see a certificate of liability insurance. They will ask for this because they don’t want to be held liable if your company or one of your employees causes property damage or injuries. When you give a company you’re in business with a certificate of insurance you’re showing them you’re covered if something goes wrong.
What does a certificate of insurance include?
The following is typically included in a COI;
- Your name and address
- The name of your agent and insurance company
- The start and end dates of your policy
- The types of coverage you purchased
- Your coverage limits
- Your policy number
When did the business insurance industry first develop a standard COI?
For the most part business insurance companies have used their own approach to to policy forms. Although, this has always lead to confusion with brokers, agents and even customers. Which has made it difficult for business insurance companies.
Business insurance companies came together in the 70’s and formed the Association for Cooperative Operations Research and Development (ACORD). ACORD was then authorized to to issue standard forms that everyone involved in the business insurance industry had access to. The ACORD certificate of insurance was included.
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