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What is a certificate of insurance?
A certificate of insurance is evidence a policy exists, not proof your lease requirements are met. The form says so on its face. What to check instead.
A certificate of insurance is a one-page document issued by an insurer or broker as evidence that a policy exists. It shows the named insured, carrier, coverage types, limits, and effective dates. It is evidence of coverage, not coverage itself, and it does not establish that your lease’s insurance requirements have been satisfied, a distinction that is printed on the form itself.
What the form actually says
Most certificates in commercial use are the ACORD 25, Certificate of Liability Insurance. Three passages do most of the work: the header disclaimer that the certificate "confers no rights upon the certificate holder"; the note that if the certificate holder is an additional insured, the policy must have additional insured provisions or be endorsed; and the cancellation language stating notice "will be delivered in accordance with the policy provisions."
What a certificate cannot do
The NCOIL Certificates of Insurance Model Act sets out the limits directly: a certificate "shall not confer to any person new or additional rights beyond what the referenced policy of insurance expressly provides," and "may not warrant that the policy of insurance referenced in the certificate comply with the insurance or indemnification requirements of a contract." Collecting certificates is a necessary control and not a sufficient one.
Lease requirement versus what the certificate shows
| What the lease requires | What the certificate shows | What actually establishes it |
|---|---|---|
| Minimum limits | The limits in force on the date of issue | The policy. Aggregate limits can erode during the term |
| Landlord as additional insured | A checkbox, or typed text | An additional insured endorsement naming the landlord |
| Waiver of subrogation | A checkbox or statement | The policy endorsement waiving it |
| 30 days notice of cancellation | "Notice will be delivered in accordance with the policy provisions" | Notice rights under the policy, which a certificate cannot create |
The cancellation notice problem
A tenant can be contractually obliged to deliver something the standard form no longer says, since current ACORD language promises notice only per the policy provisions. The resolution is to negotiate the clause toward what is actually obtainable, usually an undertaking by the tenant to give notice, rather than relying on certificate language that lapsed years ago.
For a portfolio, the practical record holds the abstracted requirement, the current certificate with its expiration tracked, and the endorsements that actually establish coverage, held alongside rather than inferred from the certificate. See our lease abstraction and critical date and notice tracking.
Frequently asked questions
Is a certificate of insurance the same as an insurance policy?
- No. The policy is the contract that creates coverage. The certificate is a summary issued as evidence that the policy exists, and it confers no rights of its own. If the two conflict, the policy governs.
Does being named on a certificate make you an additional insured?
- No. Additional insured status comes from a provision in the policy or an endorsement to it. The ACORD 25 says as much on its face; ask for the endorsement rather than relying on the certificate box.
How long is a certificate of insurance valid?
- It is a snapshot rather than a term document, reporting the policy dates as at the date of issue. It does not update if the policy is cancelled or coverage changes, which is why certificates are collected annually.
Can a broker add wording to a certificate to satisfy a lease clause?
- That practice is exactly what the model act targets. If the lease requires something the standard form does not say, the fix is an endorsement or a revised clause, not typed text in the description field.
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