What is an ACORD 25 form?

The ACORD 25 is the standardized Certificate of Liability Insurance used by virtually all U.S. insurers. It is a one-page summary document issued by an insurance agent that lists the types of coverage a contractor carries, their policy numbers, coverage limits, and effective dates. It is not the insurance policy itself — it is evidence that a policy existed at the time the certificate was printed. Policies can lapse after issuance, which is why phone verification is required.

Can a contractor's certificate of insurance be faked?

Yes. Fraudulent or outdated certificates of insurance are more common than most homeowners expect. Because the ACORD 25 is a fillable PDF that any person with basic software can modify, fake certificates are straightforward to produce. More common than outright forgery is a lapsed certificate: the policy shown was real but has since been cancelled for non-payment. Both scenarios look identical on paper. The only reliable verification is to call the issuing insurer at a number you look up independently.

What is an Additional Insured endorsement and should I require it?

An Additional Insured endorsement formally adds you to the contractor's liability policy, giving you direct rights to file a claim under their coverage if you are sued because of the contractor's work on your property. A certificate can note 'Additional Insured' in the description box, but that language means nothing unless the insurer has actually issued an endorsement. For any project over $10,000, request Additional Insured status and confirm with the insurer that the endorsement has been issued.

What minimum coverage limits should a residential contractor carry?

For residential projects, the minimum acceptable thresholds are: General Liability at $1 million per occurrence and $2 million aggregate; Workers' Compensation at $100,000 per occurrence; and a Surety Bond sized appropriately for your project value. On larger renovation projects ($50,000+), $2 million per occurrence general liability is preferable. Coverage below these minimums leaves meaningful financial exposure if something goes wrong on your property.

What should I do if a contractor's insurance lapses mid-project?

Stop work immediately and do not make any further payments until the contractor provides evidence of reinstated coverage — verified by calling the insurer, not by reviewing a new certificate. Work done without insurance coverage exposes you to personal liability for any worker injury and leaves you unprotected for property damage caused by the contractor. Require that the contract include a clause obligating the contractor to maintain continuous coverage throughout the project and notify you within 48 hours of any cancellation.

What is the difference between an occurrence policy and a claims-made policy?

An occurrence-based general liability policy covers incidents that happen during the policy period, regardless of when the claim is filed — even years later. A claims-made policy only covers claims filed while the policy is active. For homeowners, an occurrence-form policy on your contractor is strongly preferable. If a defect from the contractor's work surfaces two years after project completion and the contractor has a claims-made policy that has since expired, you may have no coverage to pursue. Look for 'Occurrence' in the policy form box on the ACORD 25.

How to Read a Contractor's Certificate of Insurance (COI)

What a Certificate of Insurance Actually Is

The Certificate of Insurance is a summary document, not a guarantee of coverage. It is a one-page snapshot of what policies existed at the time an insurance agent issued the form. That distinction matters because policies can be cancelled, modified, or allowed to lapse after the certificate is generated — and the certificate will still look exactly the same.

The standard form for contractor liability insurance is the ACORD 25 Certificate of Liability Insurance. It is issued by the contractor's insurance agent, not directly by the insurer. Every credentialed residential contractor should be able to produce one in minutes when asked.

Understanding what each field on the ACORD 25 actually means — and what it does not mean — is the difference between a homeowner who is protected and one who discovers, after a worker is injured on their property, that the coverage they thought they had never existed.

Who Issues the ACORD 25 and What It Covers

ACORD (Association for Cooperative Operations Research and Development) is a nonprofit standards organization that creates standardized forms used throughout the insurance industry. The ACORD 25 is their Certificate of Liability Insurance form — the version used for commercial general liability, which is the type residential contractors carry.

The certificate is always issued by the contractor's insurance agent or broker, not the insurance company directly. The agent fills in the fields based on the active policies they have placed for the contractor.

What the ACORD 25 covers (policy types listed on the form):

Commercial General Liability (CGL): The core coverage. Protects you if the contractor damages your property or a third party is injured as a result of the contractor's operations. This is the non-negotiable baseline.
Workers' Compensation: Covers the contractor's employees and, depending on the policy, subcontractors if they are injured on your property.
Commercial Auto Liability: Covers vehicles used in the course of the contractor's business — relevant if a crew vehicle damages your driveway or a neighbor's property.
Umbrella/Excess Liability: An additional layer above the primary policy limits. Not always present on smaller contractors' certificates.

What it does not cover on its own: The certificate does not create coverage for you unless you are named as an Additional Insured through a formal endorsement. It is proof the contractor has coverage for their own business — not automatic protection for you.

The Critical Fields: A Section-by-Section Guide

Producer Box (Upper Left)

This section identifies the insurance agent or broker who issued the certificate. It includes the agency name, address, and contact phone number.

Why it matters: This is the starting point for your verification call. Note the agency name and phone number — but do not use this number to call. Look up the insurance company independently and call its main claims or policy verification line. The agent listed here is the contractor's agent, not a neutral party. Verification should route through the insurer directly.

Named Insured Box (Upper Left, Below Producer)

This is the business or individual that actually holds the insurance policy.

Critical rule: The name in this box must match exactly the legal business name of the contractor you are hiring. If your contract is with "Hartwell Roofing LLC" and the Named Insured reads "Tom Hartwell d/b/a Hartwell Home Services," you are looking at a different legal entity. Call to clarify — these may be related, or the contractor may be presenting insurance they do not actually hold under their operating entity.

Coverage Types and Policy Numbers

Each row in the center table of the ACORD 25 lists a coverage type along with its policy number, form type (occurrence or claims-made), and effective/expiration dates.

General Liability row — what to check:

Policy form: Look for the checkbox marked "Occurrence." Occurrence-based policies cover incidents that happen during the policy period regardless of when a claim is later filed. Claims-made policies only respond to claims filed while the policy is active. An occurrence form is strongly preferable for residential work where defects may surface years after completion.
Policy number: Note this for your verification call. The insurer can confirm whether this specific number is active.
Effective/Expiration dates: Confirm the policy covers the full duration of your project, from start date through your anticipated punch-list completion. If the policy expires during your project, require that the contractor produce an updated certificate before that expiration date.

Workers' Compensation row — what to check:

Confirm the coverage type is "Employer's Liability" or "Workers' Compensation and Employer's Liability" — not a stripped-down policy that only covers certain classes of employees.
Note whether the policy excludes subcontractors. Ask this explicitly on your verification call: "Does this workers' comp policy cover subcontractors the GC brings onto the job?"

Expiration dates: Any coverage line showing an expiration date that has already passed is a disqualifying issue, full stop. Do not proceed until a current certificate is produced and verified.

Coverage Limits

The limits section shows the maximum dollar amounts the insurer will pay per claim and in aggregate over the policy period.

Minimum acceptable limits for residential home improvement projects:

Coverage	Minimum per occurrence	Minimum aggregate
General Liability	$1,000,000	$2,000,000
Workers' Compensation	$100,000 per accident	$500,000 per disease
Automobile Liability	$1,000,000 combined single limit	—

For larger projects — full kitchen or bathroom remodels, additions, roof replacements — $2 million per occurrence for general liability is the more protective standard. Projects where crews are on your property for weeks carry more cumulative exposure than a single-day installation.

Limits below the minimums above are a yellow flag, particularly on anything other than a small repair. Ask the contractor to explain why their coverage is below standard.

Certificate Holder Box (Lower Right)

This is where your name and address appear if you request it. Being listed as a Certificate Holder entitles you to receive notification if the policy is cancelled — typically 30 days' advance notice, though this has become less consistently enforced than it once was.

Important limitation: Certificate Holder status does not make you an Additional Insured. It gives you notification rights only. Do not confuse the two.

Description of Operations Box (Middle Section)

This free-text field is where specific project details, contract numbers, or special requirements can be noted. If you request Additional Insured status, the language confirming it should appear here: "Certificate Holder is named as Additional Insured per CG 20 10 04 13 endorsement."

However — as detailed below — language in the Description box means nothing without a corresponding endorsement on file with the insurer. Always verify by phone.

What "Additional Insured" Means and When to Require It

Additional Insured status transforms you from a bystander to a covered party on the contractor's policy. If someone sues you because of the contractor's work on your property — a subcontractor's employee who was injured, a neighbor whose property was damaged — you can file a claim directly under the contractor's general liability policy rather than relying solely on your homeowner's policy.

When to require it: Any project over $10,000. Any project where multiple workers or subcontractors will be on your property. Any project involving significant property alteration where a defect could result in downstream liability.

How to request it: Tell the contractor in writing: "I require that my name and address be added as an Additional Insured on your general liability policy, specifically for work performed at [your address]. Please provide a copy of the endorsement, not just a certificate notation."

The critical distinction: A certificate of insurance can include language saying you are an Additional Insured in the Description of Operations box. That notation is not an endorsement. It is text on a summary document. The actual endorsement is a separate form (typically an ISO CG 20 10 or CG 20 37 form) that must be issued by the insurer and added to the policy. Call the insurer and confirm: "Has an Additional Insured endorsement been issued naming [your name] for work at [your address]?"

Without that confirmed endorsement, the certificate notation is legally meaningless.

How to Verify the Certificate Is Current and Not Forged

The verification call is not optional. It is the step that distinguishes a homeowner who is actually protected from one who believes they are protected.

Step-by-step verification process:

Receive the Certificate of Insurance from the contractor.
Write down the insurance company name — not the agent, the actual insurer (e.g., "Travelers," "Zurich," "Hartford").
Go to that insurance company's official website and find their main phone number or their certificate verification line. Do not use any number written on the certificate or given to you by the contractor.
Call the insurer and provide the Named Insured's business name and the policy number from the certificate.
Ask:
- "Is this policy currently active?"
- "Is the policy in occurrence form or claims-made form?"
- "What are the current per-occurrence and aggregate limits for the general liability coverage?"
- "Has this policy been cancelled or lapsed at any point in the last 12 months?"
- If you requested Additional Insured status: "Has an Additional Insured endorsement been issued naming [your name] for work at [your address]?"

Write down the name of the representative you spoke with and the date and time of the call. This documentation matters if coverage is later disputed.

Why the contractor's provided number is unreliable: In cases of fraudulent certificates, the phone number written on the document routes to a confederate posing as an insurance agent, who confirms whatever the homeowner asks. Using an independently sourced number eliminates this vector entirely.

Minimum Coverage Requirements for Home Improvement Contractors

These are the floors, not the ideals. Treat coverage below these thresholds as a negotiating point or a disqualifying condition depending on project scope.

General Liability — $1 million per occurrence: This covers a single incident — a contractor's worker puts a nail through a water pipe, floods your basement, and causes $85,000 in damage. One million dollars is sufficient for most residential incidents. For full additions or large renovations where multiple trades are working simultaneously over weeks, $2 million per occurrence is more protective.

General Liability — $2 million aggregate: The aggregate is the maximum the insurer pays across all claims during the policy period. If the contractor has multiple projects running simultaneously, a large claim on another job reduces the aggregate available for yours.

Workers' Compensation — $100,000 per accident: This covers a single worker's injury. Given the physical nature of roofing, demolition, and structural work, injuries do occur. Workers' comp protects you from being held personally liable for the injured worker's medical bills and lost wages under premises liability theory.

Surety Bond: Bonding is a financial guarantee of contract performance — if the contractor abandons your project or fails to pay subcontractors (who could then file a mechanics lien against your property), the bond provides a recovery mechanism. For more context on bonding and how it works alongside GL and workers' comp, see our complete contractor insurance overview.

What to Do If Coverage Lapses Mid-Project

A mid-project insurance lapse is a serious situation, but it is manageable if you act immediately rather than hoping the contractor resolves it quietly.

Step 1: Stop all work. No work should proceed on your property while the contractor has no active coverage. Your exposure during an uninsured period is identical to having hired an uninsured contractor from the start.

Step 2: Do not make any further payments. Withhold the next scheduled progress payment until coverage is reinstated and verified.

Step 3: Get written confirmation of reinstatement. A new certificate is not sufficient. Run the full verification call again — call the insurer at an independently sourced number, confirm the policy is active, and confirm the new effective date covers the gap period retroactively if possible.

Step 4: Assess your contract. Most well-drafted home improvement contracts include a clause requiring the contractor to maintain continuous insurance coverage and notify the homeowner within 48 hours of any cancellation. If your contract has this clause, the lapse is a breach. If it does not, add this requirement to every future contract.

Step 5: Consider pausing the relationship. A mid-project lapse frequently signals financial stress. Contractors who cannot maintain their insurance premiums may also be struggling to pay subcontractors and suppliers — which creates mechanics lien risk for you. Evaluate whether to continue or to negotiate a documented suspension of work while you assess the contractor's overall financial position.

Common COI Scams and How They Work

Understanding how fraudulent certificates are used helps you recognize the warning signs before they become your problem.

The screenshot certificate: A contractor takes a photo or screenshot of a legitimate COI from a previous policy period, adjusts visible dates using basic editing software, and sends it as current proof of coverage. The document looks real because the template and formatting are authentic. The dates and policy numbers are not. Verification by phone catches this immediately — the insurer will confirm no active policy exists under the stated number.

The borrowed certificate: A contractor uses a certificate belonging to a different business — often a related company or a former employer — knowing most homeowners will not notice that the Named Insured does not match the business they are contracting with. Again, the fix is confirming that the Named Insured matches your contractor's legal entity name exactly.

The cancelled-policy certificate: The most common scenario. The contractor had a legitimate policy, the certificate was real when issued, but the policy lapsed for non-payment six weeks later. The contractor continues presenting the same certificate to new homeowners because most never call to verify. The insurer confirms in one phone call that no active policy exists.

The artificially inflated limits: Less common but documented — a contractor edits the limits section of the certificate to show higher coverage than actually exists, knowing a homeowner's contract or a general contractor's requirements include a minimum threshold. Always confirm limits verbally with the insurer.

The Fastest Verification Shortcut

If the above process sounds like a lot of work, AboveBoardPros does most of it for you. Contractors in our network have passed license verification, insurance confirmation, reference checks, and business history review before you see their name. You still get three bids and still read the contract carefully — but you start with a filtered pool instead of a blank search.