You are collecting paperwork from a new sub and receive a certificate of insurance. Use it to identify the listed insured, insurers, policies, dates, and selected limits. Do not treat it as the insurance policy or a promise that your particular loss will be covered. North Carolina law makes that distinction explicit. Certificate statute
Use these questions with the issuer and your licensed insurance adviser. This guide does not determine coverage for a specific job or claim.
What the ACORD 25 lists
ACORD 25 is a Certificate of Liability Insurance. The specimen hosted by the regulator lists producer and insured details, insurers, policy information, coverage lines, limits, operations, a certificate-holder field, and an authorized representative field. ACORD 25 specimen
Use it to identify which insurer and policy your reviewer needs to ask about. The specimen’s notices also state that it provides information and does not alter coverage. Form notices
The form is not a license record, a trade reference, or a project-completion guarantee. Check licenses with the board. Use project examples and references to review the work. In North Carolina, the GC board says its license does not require insurance, so keep the two records separate. NC GC insurance FAQ
Start with the insured and producer
The insured field identifies the business named on the certificate. The producer field identifies the issuing insurance contact. Both appear separately on the ACORD form. Identity fields
Compare the named insured with the company on your proposed subcontract. If the legal name differs, ask the producer to explain the relationship and have your adviser evaluate it. Do not assume a similar name describes the same business.
Use the producer information to request current confirmation and supporting documents. As a suggested workflow, ask the sub to have its issuer send the certificate directly. Direct delivery gives you a contact for follow-up. It does not expand what the certificate proves.
If another company supplies installation labor, tell your reviewer about that arrangement. Request the evidence your adviser needs for the actual employers and entities involved.
Read each coverage row separately
The ACORD form has separate sections for commercial general liability, automobile liability, umbrella or excess liability, and workers’ compensation with employers’ liability. It also provides space for other coverage. A filled row summarizes the listed coverage. It does not answer questions about the other coverage types. Coverage sections
Read policy numbers and dates with the coverage type. Use the insurer identifier to match the row to the listed carrier. Ask the producer to explain mismatches. Do not guess.
Use this worksheet to compare the certificate with your requirements:
Scroll to read all columns.
| Certificate item | What to record | Follow-up if unclear |
|---|---|---|
| Named insured | Exact business name | Explain a mismatch with the subcontract |
| Coverage line | Policy type and number | Identify which policy the issuer is confirming |
| Insurer | Name attached to that policy | Confirm the carrier with the producer |
| Policy period | Effective and expiration dates | Request renewal evidence when the job crosses dates |
| Limits | Category and amount shown | Have the adviser compare with your requirements |
| Operations | Stated work or job reference | Ask about relevant policy terms or exclusions |
| Holder | Your entity and address | Correct the delivery information through the issuer |
A date inside the proposed work period still requires current confirmation. Ask whether later changes affect the listed policy. Record the issuer’s answer and the date of that conversation.
Check each limit separately
The general liability section labels different limits, including each occurrence, general aggregate, and products-completed operations aggregate. The certificate also warns that paid claims may have reduced limits. Do not add the boxes together and call the sum your available protection. Limit fields and notice
Ask your adviser which limits your agreement requires and how the actual policy applies them. If a contract calls for a particular aggregate treatment, request the policy language supporting it. Do not assume a checked box on the certificate answers the full question.
Ask how umbrella or excess coverage relates to the required underlying policies. Have your adviser review the policies. Do not automatically add every amount printed on the page.
The certificate is not the policy
North Carolina’s G.S. 58-3-149(b) says a certificate does not amend, extend, or alter the referenced policy. It cannot confer additional rights beyond what that policy provides. A sentence in the operations box therefore cannot create coverage absent from the policy. NC certificate law
The ACORD specimen says listed insurance remains subject to policy terms, conditions, and exclusions. Read that warning with the limit and date fields. Coverage notice
If your requirement concerns residential work, a particular operation, or an exclusion, ask the issuer for the policy wording that addresses it. The Texas insurance regulator describes requesting policy copies and asking about specific exclusions. That is document-review guidance; its state-specific certificate rules are Texas rules. TDI questions 3 and 12
Certificate holder and additional insured are different
The certificate holder field identifies the recipient. Additional insured protection requires the applicable policy provisions or endorsement. ACORD’s important notice states that requirement directly. Additional insured notice
Read the additional insured guide before treating the holder entry as evidence of the policy protection your contract requests.
If your subcontract calls for that status, collect the supporting provisions or endorsement and have your adviser compare them with the agreement. Ask which entity receives protection and under what conditions. A holder name or an additional insured indication on the summary is a reason to request the policy wording. It does not settle coverage.
For an endorsement that depends on a written contract, ask whether your agreement and its timing satisfy the actual wording. Do not assume that emailing a certificate completes those conditions.
Cancellation notice depends on the policy
The listed policy has its own effective and expiration dates. Keep your renewal process tied to the actual policy period. Ask the issuer what current documents are available when work continues past the renewal date.
In NC, a certificate holder has a legal right to cancellation, nonrenewal, or material-change notice only under the statute’s policy or endorsement conditions. The certificate cannot alter those notice terms. G.S. 58-3-149(e)
Have your adviser identify any notice protection you require. Do not assume a right to notice takes care of renewal follow-up. Assign someone to request and review new evidence before the current period ends.
Confirm workers’ comp after checking the database
The NCIC insurance coverage search offers employer and policy lookup options. Use it to compare the employer and period in your file.
The Commission warns that its coverage database is not proof of workers’ compensation insurance and may omit recent or unreported changes. Confirm current coverage directly with the employer or insurer. NCIC notice
Keep the lookup date, certificate, issuer response, and adviser questions together. The file should show what you received and what is missing. Paperwork is not a guarantee against every risk.
For the job-specific request and issuer follow-up, use checking subcontractor insurance. Keep the certificate, supporting wording, reviewer, and renewal dates in the subcontractor document file.
Use the subcontractor vetting workflow to assign the evidence check before the package is awarded.
Where Cercha fits
Cercha profiles can display credential badges and help you contact members through Messages. A badge can prompt you to request a current certificate and speak with its issuer. Complete the policy and endorsement review outside that profile check.
More guides for builders and vetting and credentials.