Giving Notice: New ACORD Changes for Certificates of Insurance

Companies of all sizes and across virtually all industries routinely rely on certificates of insurance as proof that their counterparty, vendor or supplier has insurance, including an additional insured endorsement that may be required by contract. The certificate of insurance not only shows the types of insurance policies, limits of insurance and policy period, but also requires the additional insured or certificate holder to be notified when the insurance policy is cancelled. Specifically, the “old” ACORD certificate of insurance stated:

Should any of the above described policies be cancelled before the expiration date thereof, the issuing insurer will endeavor to mail ___ days written notice to the certificate holder named to the left, but failure to do so shall impose no obligation or liability of any kind upon the insurer, its agents or representatives.