ACORD 25: Including Additional Insured Status and Waiver of Subrogation
Q: Is there standard and acceptable wording for an agency to use in the ACORD 25 form Description of Operations field when issuing a certificate of insurance with an additional insured status and waiver of subrogation?
What is the standard practice for agents that issue the ACORD 25 form for policyholders who do not request or provide specific instructions to include the additional insured status and waiver of subrogation on the form? Is it acceptable to issue a COI by default that includes the additional insured status and waiver of subrogation if the endorsement indicates the additional interest via a written contract?
Response 1: Attaching the applicable forms is good practice. Unless there is a specific additional insured or waiver of subrogation in favor of the certificate holder, you should include the form and note when “required by written contract.” This makes it clear that there must be a valid and enforceable contract and that other requirements or limitations on the attached endorsement apply.
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Particularly for contractors, even when not specifically requested, we usually include a notation that shows additional insured status and waiver of subrogation as required by the written contract. Since virtually every lease and construction agreement requires these terms, I consider it to be standard practice to include blanket additional insured status and waivers of subrogation on all commercial general liability policies and to also indicate it on the COI.
Response 2: I would attach the forms that provide additional insured status or waiver of subrogation and list them by form number, including the date, and form title. However, I would not give any description or interpretation of those forms. If a certificate holder asks for interpretation of any forms attached, I would refer them to their attorney.
A COI is only a snapshot of insurance as it exists on the date the COI is issued. All the descriptions or interpretations of the policy should come exclusively from the policy itself, as it may be provided to the certificate holder at the discretion of the insured.
Response 3: The Description of Operations field, according to the ACORD forms instruction guide, is to record “information necessary to identify the operations, locations and vehicles for which the certificate was issued.” Any language you add beyond that doesn’t belong there. For more on that, read “Top 5 Certificate of insurance Q&As” from Insurance Commentary by Bill Wilson.
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That said, should you choose to add additional language, it is important to make sure that whatever you add is truthful and is not a violation of state certificate of insurance laws. I would suggest not including additional insured and waiver of subrogation language on a COI unless it is specifically requested.
Response 4: An insurance agency is not a detective agency. About the farthest an agency should go is to request a copy of the contract, agreement or other document containing the request for a COI from their insured. If there is none, just give your insured what they ask for. Make sure their request is in writing.
Regarding the additional insured status and waiver of subrogation, you don’t need any additional wording. Just check the boxes provided on the COI showing that the coverage is providing additional insured status and waiver of subrogation. That’s what the boxes are for. Attach copies of the endorsements and you are done.
Your insured’s insurance policy is confidential information. If you release any more than what your insured requests or approves, good luck in court.
If, for whatever crazy reason, you do add language to the Description of Operations field, always end it with: “Information added herein is subject to insurance policy terms and conditions.” Simple but effective.
Response 5: For the Descriptions of Operations field, most agencies use minimalist wording that directs the certificate holder to the actual policy endorsements. This avoids misrepresenting coverage and keeps the certificate compliant with ACORD rules.
More on COIs
Never include additional insured status and waiver of subrogation by default. Even if the policy contains automatic “when required by written contract” endorsements, the agency should not default to showing additional insured, waiver of subrogation, primary and noncontributory, or any other special status on a certificate. The insured must confirm when these statuses should be granted.
The standard practice is to ask the insured whether additional insured status or waiver of subrogation is needed for that certificate holder, or issue a clean certificate and amend it only if requested by the insured. This ensures the agency does not overextend coverage or imply obligations the policy does not support.
This question was originally submitted by an agent through the Big “I” Virtual University’s (VU) Ask an Expert service, with responses curated from multiple VU faculty members. Answers to other coverage questions are available on the VU website. If you need help accessing the website, request login information.
This article is intended for general informational purposes only, and any opinions expressed are solely those of the author(s). The article is provided “as is” with no warranties or representations of any kind, and any liability is disclaimed that is in any way connected to reliance on or use of the information contained therein. The article is not intended to constitute and should not be considered legal or other professional advice, nor shall it serve as a substitute for obtaining such advice. If specific expert advice is required or desired, the services of an appropriate, competent professional, such as an attorney or accountant, should be sought.
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