Whenever you rent a studio suite, register for a trade show booth, or apply for an aesthetician account with medical-grade product distributors, you will be asked to provide a Certificate of Insurance (COI).
1. What is an ACORD 25 Certificate of Insurance?
An ACORD 25 is the standard one-page document issued by insurance brokers and carriers to verify that an active commercial liability policy exists.
2. Key Fields to Inspect on Your COI
- Named Insured: Must list your legal business name or full personal legal name matching your state license.
- Insurer Affording Coverage (NAIC #): Identifies the exact underwriting insurance company and their National Association of Insurance Commissioners identifier.
- Type of Insurance: Confirms Commercial General Liability and Professional Liability (Errors & Omissions).
- Policy Number & Effective Dates: Verifies the exact start (inception) and expiration date of your current coverage period.
- Limits: Shows $1,000,000 or $2,000,000 per occurrence and aggregate limits.
- Certificate Holder & Additional Insured: Names your landlord and includes their full address in the bottom left section.
3. What a COI Legally Proves
A COI confirms to third parties that a policy was in force on the date the certificate was generated, with the stated policy limits and named insurer.
4. What a COI Does NOT Prove (Crucial Warning)
Important Legal Reality: A Certificate of Insurance confers no legal rights. It does not list policy exclusions, sub-limits, or modality restrictions. For instance, your COI may show $2,000,000 in Professional Liability, but your internal policy jacket may exclude chemical peels above 30% or microneedling. Always inspect your full written policy contract.