ACORD stands for Association for Cooperative Operations Research and Development is an international organization that provides standardized certificates and forms in the sector of insurance and related financial services industries. ACORD was established in 1970. In its earlier time, It was settled as a non-profit organization by insurance carriers and agents focused on building efficiencies in the United States property-casualty insurance market.
ACORD helps to provide systematic workflows, fast and exact data exchange through the development of electronic standards, standardized forms, and tools to support their use. It maintains finance and insurance-related services both in the United States and in several countries across the globe.
Standardized for Ease
Because the form is standardized, an insurer or the client will not be required to fill an entirely blank ACORD form for each insurance job. Instead, the insurance agent just needs to add a few specifics for the new client and job.
The ACORD forms contain everything that makes them easier to understand. There are checkboxes and pre-printed and labeled areas for important details so that an insurer or the client can’t miss anything.
Note:- ACORD insurance forms get updated periodically. It will be best suited to check with your insurer or the insurance agent when renewing your policy for any updated versions.
Additional Benefits of ACORD Certificates
The standardization that goes into ACORD Forms is quite impressive. It improves efficiency and accuracy between insurers and business partners.
There are many formats of ACORD Forms so that insurers or the insureds can easily use them as per the requirements. One can select printable ACORD documents, e-forms, or PDFs. ACORD forms are available in all of the above formats for insurance services.
As there is a wide variety of insurance agencies that collect data from clients, ACORD allows everyone to get the same, standardized forms from everyone, reducing disorder for everyone involved.
ACORD certificates and certificates are classified by number. This classification makes it easier to manage the types of forms that insurance agencies need to send and receive. Of the massive list, some of the most popular forms and certificates used in the insurance industry are the following:
Personal Auto Application (ACORD 90)
Commercial Insurance Application (ACORD 126)
Certificate of Liability Insurance (ACORD 25)
Evidence of Property (ACORD 27)
Certificate of Property Insurance (ACORD 24)
Evidence of Commercial Property Insurance (ACORD 28)
Additional Remarks (ACORD 101)
Workers Compensation Application (ACORD 130)
Why Are the Certificates of Insurance Necessary?
In simple words, a certificate of insurance (COI) is the proof of insurance for your business, vehicles, or other things for which the client purchases the insurance policies. We can also take the example of business insurance, it provides businesses peace of mind and legal security. If you want to do business with a new vendor or contractor and they can’t provide you with an ACORD COI, it means the vendor or contractor is not properly insured since most of the insurance agents will send ACORD COIs for free of charge.
When someone purchases an auto insurance policy, he or she will also receive a companion document—the insurance card. This proof of insurance helps the insured in the event of an accident. Likewise, if a general liability policy has been purchased, the insured should also procure a certificate of insurance that will be used to prove the insured status of business when entering into new contracts.
Note:- An insurance card itself is not a policy. COIs are very vital to your business’s day-to-day activities because businesses want to know the firms they hire have their own liability insurance that would provide insurance coverage after property damage or in the case of an accident.