ACORD 28 Evidence of commercial property insurance

Small business owners purchase commercial property insurance for a variety of reasons. Often they're trying to fulfill a legal state requirement, sign a lease, win a client contract, or simply protect their business income and assets.

For many policies, the insurance company will issue a certificate of liability insurance (COI), which can demonstrate the named insured has liability coverage. This acts as proof of insurance and can be shared with landlords, clients, and other stakeholders or third parties as needed.

For property coverage though, most insurance companies will issue a policy through an ACORD 28 form, which is titled "Evidence of Commercial Property Insurance". The ACORD Corporation is a nonprofit that provides forms and standards for the insurance industry.

ACORD 28 is an industry-standard form used by the majority of insurance providers and it acts as your proof of commercial property insurance. It also contains all of the coverage information you'll need as a certificate holder to manage your policy.

ACORD 28 evidence of property insurance and a certificate of insurance are the same thing, though you may see the terms used interchangeably.

Your ACORD form will function as a certificate of insurance for your commercial property policy and can be used in the same way as any other standard commercial certificate of insurance.

ACORD 25 refers to a standard certificate of liability insurance insurance agents use for general liability insurance policies.

An ACORD 28 is the evidence of commercial property insurance a policyholder receives for their commercial property policy.

They both serve a similar function (to provide evidence of insurance coverage), but they reflect different types of insurance.

There's also an ACORD 27 for personal and commercial property policies of insurance. However, the majority of commercial policyholders will receive the ACORD 28 form for their commercial property policy.

An additional insured endorsement extends your commercial property coverage to include third parties.

These third parties could include contractors, business partners, vendors, and landlords.

An additional insured could be a specific individual, or you can purchase a blanket endorsement. Blanket coverage protects a range of unnamed people, such as subcontractors or tenants.

While a loss payee isn't an additional insured, you can add a loss payable clause to your commercial property policy. A loss payee is often added when a lender or mortgagee provides a small business owner with a property loan.

This ensures the loss payee receives payments if there's a covered peril or property loss and protects their financial investment in the property.

You may need to provide evidence of property insurance coverage for a variety of reasons. The most common is to sign a property lease. Many landlords will require commercial businesses to carry a certain amount of insurance before they're willing to rent a storefront or other business space. 

Additionally, you may need proof of property insurance to sign a client or win a contract. Clients may want the security of knowing your business is insured before agreeing to work with you.

Lastly, business partners may want to know your business is covered in the event of an incident or accident. They may also ask to be included as an additional insured so the commercial property insurance extends to their operations on your property as well.

Obtaining a certificate of property insurance is simple with Insureon.

You can speak to one of our licensed insurance agents if you have questions about the best coverage for your business, including other policies to protect your business personal property (BPP).

Once you submit an application, most small business owners receive their ACORD 28 form within 24 hours.

Small business owners can submit an easy online application and receive quotes from top U.S. insurance companies. You can apply for coverage and get started right away with Insureon.