In one sentence
The standard certificate of liability insurance, evidencing a borrower's liability coverage to the lender.
The longer version
The ACORD 25 summarizes liability policies and lists the lender as additional insured where required. It is evidence of coverage, not the policy itself, and lenders read it against the loan's insurance requirements.
Certificates can misstate coverage, so careful insurance review checks the certificate against actual policy terms.
Common questions
- What is an ACORD 25?
- The standard certificate of liability insurance form, used to evidence general liability and related coverages to a lender or other certificate holder.
- Is an ACORD 25 proof of coverage?
- It summarizes coverage but does not change or extend the policy. Lenders often require additional insured endorsements, not just the certificate.
- What should a lender check on an ACORD 25?
- Coverage types and limits, policy dates, the insured's name matching the borrower, and the lender's status as certificate holder and additional insured.
Keep reading
- The due diligence checklist, built to be runChecklists as systems, not documents.
- The commercial loan closing checklistWhat goes on the list and who owns each line.
- The post-closing audit trailWhat examiners ask for and how to have it ready.
- Commercial loan softwareWhere this sits in the lending stack.