VersiTrax ACORD and Certificates of Insurance

ACORD and Certificates of Insurance

ACORD:

ACORD is an acronym for Association for Cooperative Operations Research & Development. They are governed by the same. ACORD is a global nonprofit organization that serves the insurance industry in the creation and filing of the standardized forms and certificated used by 90% of insurance carriers in the US.

ACORD certificate of insurance is a one page certificate that summarizes the necessary information regarding your insurance policy like insurance limits, policy numbers and coverage types both effective and expiration dates.

Creation of ACORD forms:

An open standards development process is followed by ACORD. Not just ACORD members but any interested party could propose an enhancement or change to the ACORD standards. These proposals are called maintenance requests (MRs) and are presented to the concerned committees for review and vote when approved.

Difference between Insurance Certificate & Insurance Policy:

A COI (certificate of insurance) and insurance policy are not same. COI does not serve to amend, alter, endorse, extend or provide any terms of an insurance policy. Only an amendment, endorsement or rider could effect changes in the coverage. Reference to contract signed between the client and a third party on certificate does not provide coverage.

ACORD Certificate of Insurance & ACORD Certificate for Property:

The ACORD 27 and 28 forms are the COIs that have been designed for the delivery to parties having a financial interest in the property that is covered by the policy listed on each. These parties are normally lending institutions and the title Evidence of… is preferred instead of Certificate of.

Despite the use of Evidence reference in title, these forms are certificate of insurance and are issued as matter of information only as required by regulation.

Certificates of Property Insurance and Liability Insurance:

Normally the insurer is obligated to notify the mortgage holder in event of cancellation of policy by the property insurance policy. And a typical liability insurance policy requires the insurer to notify only the first named insured and no one else regarding the policy cancellation unless, the policy happens to be endorsed to notify another party.  For this reason, the working groups of ACORD recommend publishing the separate certificates.

ACORD Certificate Benefits Whom:

It is not only the clients who can benefit from using the ACORD certificates to their advantage. The certificates happen to be quite useful tools for small business owners as well and are widely accepted in United States and abroad.

You could also inquire your contractors, vendors and subcontractors for their ACORD certificates and if they are unable to respond to you there is a possibility there are not insured as most of the insurance agents provide these to their clients free of cost.

ACORD insurance certificate provides you with peace of mind and legal security. If you are interested in getting an ACORD certificate, contact VersiTrax who will ensure that you get the best services regarding COIs and ACORD certificate of insurance. The skilled staff at VersiTrax will provide you with the ideal business solutions.

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