An ACORD certificate of liability insurance is a form given to a third party as proof of insurance, and it details the insurance policy coverage during a given time, according to MFP Global Services Corporation. Certificates provided by the Association for Cooperative Operations Research and Development are the industry standard.
An ACORD certificate of liability is not an insurance policy, and it does not provide insurance coverage. Additionally, it is not a contract between the certificate holder and the insured or the insurance company or the agent, as MFP Global Services Corporation explains. Instead, it is merely a document that details the insurance held during the time period indicated by the certificate, and it exists for informational purposes only.
The certificate does not modify existing insurance policies, according to Murphy Insurance Agency, and MFP Global Services Corporation advises policyholders to review the terms of the contract that the certificate is requested for with the insurance provider so that they can make any necessary modifications to their existing coverage. Commonly requested modifications include adding a person or organization not already covered, called an "additionally insured," to the policy; increasing liability limits; adding rental coverage; and adding clauses that detail the order in which multiple insurance policies deal with a single claim, according to MFP Global Services. In many states, it is illegal to provide inaccurate information about insurance coverage on a certificate.