ACORD 25 vs ACORD 27 – What’s the Difference?

When it comes to insurance documentation, Acord forms are widely used to provide a standard way of sharing information between insurance companies, agents, brokers, and policyholders. Among the most commonly used forms are Acord 25 and Acord 27. Both serve as proof of insurance, but they are not the same. The Acord 25 is used to show liability coverage, while the Acord 27 is used to confirm property coverage. Understanding these differences helps professionals, lenders, and policyholders choose the appropriate document and avoid compliance issues.

What is The Acord 25?

The Acord 25, officially known as the Certificate of Liability of Insurance (COI), is used to provide proof of coverage to third parties, lenders, and vendors. They require the form before leasing property, signing a contract, or starting a project.

What is The Acord 27?

The Acord 27, known as the Evidence of Property Insurance, requires the mortgage lenders, financial institutions, and property managers to show proof of property insurance coverage before lease agreements or finalizing loans.

Acord 25 vs Acord 27: Key Differences

Feature	Acord 25	Acord 27
Purpose	Provide proof of liability coverage to a third party	Provide proof of property coverage for lenders/owners
Type of Coverage	General liability, auto liability, umbrella, workers’ compensation	Property insurance
Common Users	Contractors, vendors, service providers, landlords	Mortgage lenders, financial institutions, and property managers
Thrid-Party Benefits	Protects project owners & clients against liability risks	Protects lenders’ interests in insured property
Legal Disclaimer	For informational purposes only	Serves as official evidence of property insurance

When to Use The Acord 25 vs Acord 27?

Use Acord 25 When:

Vendors or service providers must prove they are insured before starting a project or working with another company.

A contractor is hired for a project, and the client requires proof of liability coverage.

When a business signs a lease, the landlord requests evidence/Acord 25 form.

Use Acord 27 When:

Renewal of property-related loans requires updated proof of property coverage.

A mortgage lender or bank needs to verify that a property is appropriately insured to approve financing.

A property manager requires documentation of insurance coverage for a rental or leased building.

Final Words

Both the Acord 25 and the Acord 27 forms serve as proof of insurance, but they are meant for different requirements. The Acord 25 is used for liability insurance. While the Acord 27 is used for property insurance, it provides property managers or owners with evidence that a building is insured.