ACORD Changes Limits Wording on Certificate of Insurance
Insurance industry standards-setting organization ACORD recently introduced a new edition of its most popular evidence of insurance form. The new Certificate of Liability Insurance, ACORD 25 (2025/12), is in use now.
The most significant changes are to the text in the box that begins with the words, “THIS IS TO CERTIFY …” The prior edition of the form ended the text in that box with, “LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.” The new edition added an asterisk (*) at the beginning of that sentence and adds a new sentence at the end: “LIMITS SHOWN ARE INCLUSIVE OF AMOUNTS REQUESTED BY THE CERTIFICATE HOLDER AND MAY NOT REFLECT POLICY LIMIT AMOUNTS IN EXCESS OF THOSE REQUESTED.”
This seems to imply that a certificate could show the insurance limits required by a contract that applies to the project described in the body of the certificate, rather than those provided by the policy (assuming those are greater). We consider it a good errors and omissions loss prevention practice to show the limits on the policy regardless of those required by a contract.
The asterisk indicates that the last two sentences do not apply in the state of Wyoming.
The new edition appears on the New York State Department of Financial Services’ approved certificates of insurance list. All agencies should be using it now. Check with your ACORD forms vendor to ensure that they are providing you with this edition.
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