Author: blogs2025

A certificate of insurance is a written document that provides proof of insurance coverage, summarizing key details such as the type of policy, coverage limits, policyholder name, effective dates, and the insurer’s contact information. It is commonly used in business contracts to show that a party has the required insurance in place, such as general liability or workers’ compensation. Understanding how to read a certificate of insurance is essential for verifying that the coverage meets contractual requirements.

If you’re an experienced business person, certificates of insurance are probably not new to you. You’ve likely requested and read one many times before. But can you read a certificate of insurance from top to bottom and be sure that you understand everything there?

On the other hand, if you are a new startup or small business owner, you possibly haven’t even had the chance to come across, let alone read, a certificate of insurance. They could be a true mystery for you then. So, let’s first explain briefly what a certificate of insurance is.

Simply put, a certificate of insurance (COI) is proof of having insurance coverage. It is a document that summarizes your insurance policies and provides the necessary coverage details when your clients or vendors, for example, request that from you.

The certificate of insurance is valid for as long as your policy is active. Once your policy expires, your certificate can only be used to prove that you had insurance coverage at a given period, but it doesn’t help with future projects.

You can obtain a certificate for any type of insurance policy you have in place with your insurer(s). The most common types of certificates insureds request are the certificate of liability insurance and property insurance certificate.

Certificate of liability insurance can list the details of the requested liability policies, such as general liability, errors & omissions (professional liability), workers compensation, or employers’ liability, for example.

Commercial property insurance certificate provides details of the commercial property insurance policy, outlining coverage information and insured perils. Banks usually request this type of certificate from their clients because they hold the mortgage over the property when giving out loans.

In What Situations Do Businesses Need a COI?

Whenever you are starting a new project or a partnership, you should ensure that the new parties you work with provide adequate insurance policy certificates. You don’t want to be responsible for the claims related to their work and suffer financial losses in the process.

Also, you shouldn’t be surprised when the same is asked of you. Providing a COI to your partners proves that you run a financially responsible business that is fully insured and poses no legal liability to them. If you are a startup looking to raise funding, you can expect investors to ask for your certificate of directors and officers liability insurance.

A certificate of insurance provides security to all the parties listed in the contract and involved in the project. If you rent some equipment, lease new office space, or add a new supplier to your product chain, all involved parties will likely need to provide proof of insurance.

If you plan to renovate your offices or any other facilities you own and want to hire contractors to do that job for you, ask them for their certificate of insurance. Mistakes and accidents happen, and you don’t want to be liable unless you are responsible for them.

You also have the option of adding an “additional insured” to your liability policy when you start working with them. You add the additional insured to your coverage by including an endorsement that lists them as added insured to your current policy. Note, however, that this depends on your primary policy and the terms you have agreed with your insurer, and you might have to pay an additional fee.

What Are the Main Elements of a COI?

The good thing about COIs is that there are standardized forms that most insurance carriers, brokers, and agents use to provide proof of insurance to their clients. Those forms are called ACORD certificates, named after the nonprofit organization that developed them, The Association for Cooperative Operations Research and Development (ACORD).

Assembling hundreds of insurance companies from across the globe under one organizational umbrella, ACORD (the Association for Cooperative Operations Research and Development) has evolved into one of the most influential standards-setting bodies in the insurance and related financial services industries. Over the past 50 years, ACORD has played a central role in shaping how insurance companies communicate, exchange information, and streamline their operations.

Originally established to address inefficiencies in data sharing among insurers, agents, and brokers, ACORD has developed a vast array of standardized forms, data models, and electronic protocols that have become foundational to the industry’s modern infrastructure. These standards cover everything from property and casualty insurance to life, annuities, and reinsurance, ensuring that data can move seamlessly between systems, organizations, and jurisdictions, regardless of the technology platforms in use.

ACORD forms—such as certificates of insurance, applications, and claims documents—are now widely recognized and used throughout the global insurance marketplace, enabling faster transactions, reducing errors, and supporting regulatory compliance. Moreover, ACORD’s data standards support digital transformation by facilitating automation, improving interoperability, and laying the groundwork for advanced analytics and emerging technologies like artificial intelligence and blockchain. As the insurance industry faces increasing pressure to modernize, reduce costs, and meet rising customer expectations, ACORD’s role has become more vital than ever.

By fostering collaboration among carriers, technology providers, and industry stakeholders, ACORD continues to drive innovation and operational efficiency. In doing so, it helps create a more responsive, transparent, and connected insurance ecosystem that can adapt to future demands while maintaining the integrity and trust that underpin the industry. Through its decades of work, ACORD has not only improved the way insurers do business but also strengthened the infrastructure that supports risk management and financial security worldwide. Assembling hundreds of insurance companies worldwide under its roof, ACORD is now a standards-forming body for insurance services.

The most commonly used ACORD certificates are ACORD 25 and ACORD 27 and 28. Insurers use ACORD 25 for proof of liability insurance and ACORD 27 or 28 to provide evidence of property insurance.

We will use the example of an ACORD 25 certificate form to explain the main elements of a COI. Other certificates they created are similar since they all follow the pattern that ACORD provides. Let’s look at the sections all ACORD 25 certificates have:

1. Date: This is merely the certificate issuance date.
2. Disclaimer: The statement indicating that this document is proof of insurance but doesn’t in any way amend, extend, or alter the agreed coverage(s) named in the certificate.
3. Producer: The name of the insurer, agent, or broker who handled the insurance purchase and issued the certificate to the insured. The field should include the name and the business address.
4. Insured: This field refers to the policyholder. It should state the name of the individual or business entity holding the policy and their business address, just like the previous field.
5. Insurer(s) affording coverage: This section lists the names and NAIC numbers of insurance carriers providing the listed coverages to the insured. If there are multiple insurers, their names should stand in separate lines, as Insurer A, Insurer B, and so on.
6. Type of insurance (+ Insr. ltr:): All the relevant insurance coverages are listed in this section, right next to the “Insurance letter” box. The Insurance letter indicates which carrier holds what policy, and they match the companies from the “Insurer(s) affording coverage” section. This field already contains a list of some liability policies (such as general liability or automobile) and some blank space to add additional policies for which the policyholder needs proof of possessing.
7. Policy EFF: The policy effective date is when the named coverage begins.
8. Policy EXP: The policy expiration date shows when the coverage ends under the named policy.
9. Policy limits: Lists the limits of each specific coverage within the policy.
10. Description of operations/locations/vehicles: The producers can use this field to add any properties or entities included on any of the policies as additional insured(s). This space is also for any existing waivers of subrogation.
11. Certificate holder: The name of the person/business who requested the certificate.
12. Cancellation: The notice stating that the producer will notify the certificate holder if either party cancels the policy before its expiration date.
13. Authorized representative: The place for the signature of the authorized agent or broker.
14. Additional remarks page: If the space left in field 10 was insufficient to include all additional insureds, properties, or waivers, the producer should add all the necessary information here.

How to Read a Certificate of Insurance Form?

Most of these fields are self-explanatory and contain all the necessary information for the certificate holder. However, there are a few things you should look into when reading a COI. Suppose that you are looking at an ACORD 25 certificate provided by a business partner right now. Here’s what you should pay attention to:

• Does the business name of the insured match the name of the partner/vendor with whom you are starting the business relationship?
• Does the policy expire before the date you expect to complete your cooperation? Ask for the timely new certificate upon the policy renewal if it does.
• Does the certificate list all the necessary coverages?
• Are the limits to the listed policies adequate? If not, you should ask the other party to increase their policy limits to match or exceed your own.

If everything seems to be in order, you are good to go. However, you should be aware that a COI can be counterfeit. The best way to prevent getting one of these is to be careful when choosing your contractors, vendors, and business partners. Make sure they are reliable and potentially recommended by someone from your business network.

Should you have any reason to suspect a COI you received is fake, a few things could help you determine that. 

First, as we said before, almost all insurance brokers and carriers use standardized ACORD forms. Check for the recognizable logo in the upper left corner; if it’s not there, that could mean the certificate is not genuine.

You can also search the Internet to check if the producer’s information is correct. Extend the search to their website to check if they offer the insurance lines listed in the certificate. Also, the document shouldn’t be editable because it would indicate that it could have been tampered with before it reached you.

Another sign could be weird formatting. If you notice some strange zeros, different fonts, or inconsistent capitalization, that could be a reason to suspect foul play.

In case you still have suspicions about the document’s authenticity, you can even ask the carrier directly to send you the insured’s proof of insurance.

How to Obtain a Certificate of Insurance?

Traditionally, this process involved going back and forth between you, your broker, and your carrier, potentially printing the documents and ensuring they reached your partners. Had there been some irregularities, the certificate would have to go back to you and then to your broker to start the process again from the beginning.

Luckily, things have changed over the years, and obtaining a COI has become significantly easier. The process has become even more streamlined with the expansion of insurtechs, which are slowly but steadily modernizing the traditional insurance industry. The process for requesting a COI from your broker is now digitized and considerably more efficient than it used to be.

If you have the policy with Embroker, you can get your certificate of insurance online instantly. Simply log into your Embroker account, choose which policy you’d like a certificate for, and get started. Your business partner will receive the certificate immediately. You can also download a copy of your certificate from your Emrboker account.

If you need a customized certificate, you can also request it in your account, and it will be ready for you within 24 hours.

In today’s competitive landscape, the lines between product and price offerings among Asian insurers are blurring, compelling companies to find innovative ways to capture customer attention and secure their business. As a result, customer engagement and experience have become paramount to success. Despite insurers’ efforts to prioritize customer-centric approaches and personalized experiences, a staggering 74% of consumers have abandoned purchases due to feeling overwhelmed, according to “The Empowered Consumer”, Accenture’s global consumer research 2024. Moreover, consumer trust and loyalty remain alarmingly low, with just 39% of consumers believing that companies have their best interests at heart.

Why is this happening? Based on recent studies carried out by Accenture, both globally and in the Chinese market, we have summarized some key findings.  

• Information overload: Consumers often encounter excessive information, leading to frustration as they struggle to filter and validate the information. 62% of consumers feel overwhelmed by the abundance of options available to them.  

• Crowded market: In Reinvent Relevance in the Age of Overload, we found that nearly 80% of Chief Marketing Officers (CMOs) across industries in China note that product offerings and marketing strategies have become homogenized. While more options exist, this has created confusion and decision paralysis among consumers. 

• Evolving customer expectations: Consumers are increasingly focused on buying brands rather than just buying products, and a positive brand experience is particularly important for insurance as purchasing decisions are less frequent compared to other consumer goods. To succeed in this complex environment, insurers must reinvent customer relationships – through adapting, innovating, and leveraging technology.  

Taking these into account, this blog focuses on three levers to foster and maintain profitable growth, by enhancing customer engagement and experience: 

1. Drive data-driven marketing with AI:   

Advancements in data analytics and artificial intelligence have made hyper-personalization more accessible, guiding customers through their decision-making journey. 94% of Chinese  CMOs believe that Gen AI capabilities can help enhance organization efficiency and agility in response to market demands. 

The integration of AI tools enables marketing campaigns to focus on relevant topics and upcoming plays, generating marketing messages to stay top of mind. It also enables agents with tailored recommendations and advanced insights based on customer interests, engagement history and lifestyle factors.  

We see insurers differentiating themselves by developing AI capabilities that match products to customers based on a variety of data factors, providing recommendations based on the degree of alignment between the products and the customers’ needs. Demand for usage and behavior-based products and services continues since the covid-era spike in 2020.  

While data is the cornerstone of AI capabilities, many organizations struggle, with 65% facing challenges in building end-to-end data foundation. They often lack clarity on which data is relevant and are uncertain where to begin. As insurers navigate this complex landscape, prioritizing data organization and fostering collaboration between technology and human insight could unlock the transformative potential of AI. 

2. Embrace marketing technology to drive innovation and speed

68% of Chinese CMOs feel that customer expectations are evolving faster than their companies can keep up. Being able to respond quickly to these demands is crucial for success. To bridge this gap, insurers need to harness Marketing Technology (Martech) to gain valuable insights into customer preferences, enabling quicker responses through automated campaign workflows and more targeted marketing. This means delivering campaigns at the right time and in the right format, tailored to each customer’s unique preferences.  

To further enhance their marketing strategies, insurers should consider integrating Martech into their core and data platforms. This integration can create a more seamless journey from campaign planning, execution to tracking, allowing marketing resources to focus on their primary task – driving creative innovation – rather than getting bogged down in administrative work. We have collaborated with a leading financial institution in Hong Kong to elevate its Martech capabilities and improve its marketing operations. They have launched a new strategy focused on engaging customers through targeted marketing campaigns, utilizing insights from customer segmentation, product analysis, analytics, and various media channels. This comprehensive approach resulted in impressive outcomes: a 65% increase in new business, a 10% boost in reactivating existing customers, and a 25% improvement in marketing operations efficiency.  

While tailoring marketing strategies based on customers’ behaviors and preferences, Martech should also enable omni-channel capabilities across multiple touchpoints. Ensuring consistent messaging and seamless transitions between channels helps insurers engage with customers effectively and bring a cohesive brand experience.  

3. Foster meaningful interactions and build a customer-centric ecosystem

When products and services among companies have become highly homogenous, customers assess them not only based on the transactional relationship, but more importantly, the broader experience they have with the brand. They seek distinctive and memorable interactions that may not directly relate to the product they are buying. 76% of shoppers who find joy in shopping are likely to recommend a brand to others, highlighting how positive and engaging experiences greatly influence brand advocacy and customer loyalty. This emphasis on unique experiences is particularly crucial for the insurance industry, where purchasing decisions are less frequent compared to other consumer goods.  

Insurers can either build the ecosystem internally by integrating various product lines and services, or through collaborating with external ecosystem partners to expand the expertise. In fact, few insurers are already utilizing ecosystems to bring value-added experiences and expand their customer base. This can include partnerships with organizations in health and wellness, retail, entertainment, and travel to offer unique perks and experiences for policyholders. They may also organize events such as outdoor yoga classes, running events, and outdoor movie nights to position themselves as comprehensive health and wellness partners. 

For instance, one of the insurers in Hong Kong has entered into a cross-industry partnership with an online Food and Beverage guide platform to offer exclusive loyalty experience, health and wellness incentives, and become the first insurer in Hong Kong to provide protection for any accidents related to dining experience. 

To truly excel, insurers must strive to provide unique and memorable experiences. While most customers may not grasp the technical disparities between products offered by different insurers, they do recognize when they encounter exceptional ‘wow’ moments. Evaluating your current standing amongst competitors and actively seeking ways to deliver distinctive experiences can help your brand leave a lasting impression on customers. 

Conclusion 

Standing out with unique experiences is the key to securing enduring customer relationships and leading the way in the dynamic insurance landscape. As insurers navigate this challenging terrain, their dedication to customer engagement and differentiation will be the catalyst for sustained business growth. We believe the insights we have gleaned in Asia can inspire leading insurers in other regions for their future customer engagement efforts. 

Insurance Consumer Study: See the people behind the policies: Insurers need a profound understanding of the people behind the policies so they can be ready with solutions that fit each unique risk profile and create a protection ecosystem.

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