What is the Difference Between Acord 25 and Acord 28?
Acord forms play a vital role in the insurance industry, providing proof of adequate coverage. To provide proof of insurance, it is crucial to understand what is the difference between Acord 25 and Acord 28. Both forms serve as proof of insurance, but their purpose is different. This guide will explain the difference between Acord 25 and Acord 28 in detail.
Difference Between Acord 25 and Acord 28
| Features | Acord 25 (Certificate of Liability Insurance) | Acord 28 (Evidence of Commercial Property Insurance) |
| Purpose | Provides proof of liability insurance coverage | Provides proof of commercial property insurance coverage |
| Coverage Type | General liability, worker’s compensation, umbrella liability, and auto liability | Commercial property insurance |
| Commonly Used by | Business owners, contractors, service providers | Property owners, lenders, financial institutions |
| Certificate Holder Rights | Holder has no legal rights | Lenders may have additional rights |
| Guarantee of Coverage | There is no guarantee of coverage continuation | Provides certain protections to the lenders |
Acord 25 Form
The Acord 25 form is commonly known as the certificate of liability insurance. It contains details of an insured party’s liability insurance coverage. Business owners often require it to ensure that the company or an individual has enough coverage before signing new contracts. Some of the key features are as follows,
Features of Acord 25 Fillable
Proof of Liability Coverage
It details the insured’s general liability, worker’s compensation, umbrella liability, and auto liability insurance coverage.
Basic Policy Information
This form provides basic policy information, including insurance carriers, coverage limit, policy number, and policy effective and expiration dates.
No Guarantee of Coverage Continuation
The certificate of liability insurance provides coverage information and does not alter or guarantee insurance coverage after a specific period.
Holder vs Additional Insured
A certificate holder (a third party who receives proof of coverage) has no rights. If an additional insured endorsement is required, it must be requested and endorsed on the policy.
Acord 28 Form
Acord 28 is known as the Evidence of Commercial Property Insurance form. Acord 25 is proof of liability coverage, while Acord 28 is property insurance for commercial real estate.
Features of Acord 28
Proof of Property Insurance
It certifies that a specific building or business property has adequate insurance coverage.
Lender Protection
This form protects the lender’s financial interest in the property.
Detailed Property Coverage Information
It provides complete insurance policy details, including policy limits, deductibles, type of property covered, and key terms.
Coverage Endorsement
It provides the details about the coverage endorsement to ensure that the lenders understand the insurance protection in place.