Short answer
A certificate of insurance is a one-page summary of your policies, usually on the ACORD 25 form, that your agent issues to an operator or a prequalification platform. It shows which policies you carry, the limits and the dates. In Texas, Insurance Code Section 1811.152 says a certificate "is not a policy of insurance and does not amend, extend, or alter the coverage" of the policy.
- Operators accept the certificate as evidence, but the endorsements on your policy are what actually make the operator an additional insured or waive subrogation.
- Texas also bars certificates that reference requirements in your MSA or promise notice rights the policy does not give.
What a certificate is
IRMI defines a certificate of insurance as a document "providing evidence that certain general types of insurance coverages and limits have been purchased." Texas law defines it more broadly: any document or electronic record, "no matter how titled or described," executed by an insurer or agent and issued to a third person "as a statement or summary" of property or casualty coverage (Insurance Code Section 1811.001).
The standard form is ACORD 25, Certificate of Liability Insurance. Its own header says the certificate "is issued as a matter of information only and confers no rights upon the certificate holder" and "does not affirmatively or negatively amend, extend or alter the coverage afforded by the policies." It also says that if the holder is an additional insured, "the policy(ies) must be endorsed," and a statement on the certificate "does not confer rights to the certificate holder in lieu of such endorsement(s)."
So the certificate answers one question: does this contractor have these policies right now? Whether those policies protect the operator is answered by the policy and its endorsements.
What Texas law says about certificates
Texas regulates certificates directly in Insurance Code Chapter 1811. The parts that come up in oilfield work:
- No changing coverage. An insurer or agent may not issue a certificate that "alters, amends, or extends" the policy (Section 1811.051), and a certificate does not grant the holder new rights beyond the policy or an executed endorsement (Section 1811.153).
- Approved forms only. Certificates must be on forms filed with and approved by the Texas Department of Insurance. Standard ACORD, AAIS and ISO forms are deemed approved when filed (Sections 1811.052 and 1811.103). No one may require a certificate on an unapproved form.
- No references to your MSA. A certificate "may not contain a reference to a legal or insurance requirement contained in a contract other than the underlying contract of insurance, including a contract for construction or services" (Section 1811.154). Remarks like "coverage per MSA dated..." do not belong on a Texas certificate.
- No false or misleading certificates. A person may not require a certificate containing false or misleading information about the policy (Section 1811.054).
- Notice rights come from the policy. A holder has a legal right to cancellation notice only if it is named in the policy or an endorsement and the policy, endorsement or Texas law requires notice (Section 1811.155).
A certificate issued or required in violation of the chapter "is void and has no effect" (Section 1811.156).
How to read an ACORD 25
When an operator or a platform rejects your certificate, the problem is almost always on one of these lines.
| Field | What it shows | What goes wrong |
|---|---|---|
| Insured | Your legal name and address | Name does not match the entity that signed the MSA |
| Insurers A through F | Which insurer writes each policy | Insurer does not meet a client’s rating requirement |
| ADDL INSD and SUBR WVD columns | Whether additional insured and waiver of subrogation apply to that policy | Box checked but no endorsement on the policy |
| Policy effective and expiration dates | Policy period | Expired policy still on file after renewal |
| Limits | Each occurrence, aggregate, auto, umbrella, employers liability | A limit below the client’s requirement |
| Description of operations | Free-text remarks | Wording that tries to add coverage or cite the MSA |
| Cancellation | States notice will be delivered "in accordance with the policy provisions" | Holder expects 30 days’ notice the policy never promised |
Sample certificate: where reviews fail
- 1Named insured mismatch. The certificate says "LLC," the MSA was signed by the "Inc." Reviewers match names exactly, including DBAs.
- 2AI and waiver boxes blank. ADDL INSD and SUBR WVD are empty on the general liability line, so the reviewer cannot see the operator is covered.
- 3Auto symbol too narrow. Only scheduled autos are shown. Most MSAs want any auto, or owned plus hired and non-owned.
- 4Umbrella limit short. A $2M umbrella against a $5M requirement fails, even when everything else is right.
- 5Workers comp waiver and EL limits. No waiver of subrogation on comp, and employers liability at $500K where $1M is commonly required.
- 6Description of operations too vague. "Holder is additional insured" with no mention of primary and non-contributory, completed operations, or the endorsement forms.
- 7Notice of cancellation. The certificate itself cannot promise 30 days notice. That takes an endorsement on the policy, and reviewers know it.
Common mistakes and how to avoid them
- Treating the certificate as the fix. If the operator needs to be an additional insured on a completed operations basis, the policy needs that endorsement. Typing it into the remarks box does nothing. See why a certificate gets rejected.
- Forgetting the renewal. A certificate shows one policy period. When the policy renews, every platform and operator that holds the old certificate needs a new one.
- Sending only the certificate. Reviewers may ask for endorsement pages too, because the certificate cannot prove what the endorsements say. ISNetworld says its insurance review can include "certain policy endorsements" when a hiring client asks. See how ISNetworld reviews your insurance.
- Promising notice the policy does not give. If the MSA requires 30 days' notice of cancellation to the operator, that takes an endorsement. See notice of cancellation endorsements.
What to send us
Send the MSA insurance exhibit, your most recent certificate, and the rejection notice if there was one. We compare the requirement to the actual policy forms, not just the certificate.
Common questions
Can the operator require me to put MSA language on the certificate?
Not on a Texas certificate. Insurance Code Section 1811.154 says a certificate may not reference legal or insurance requirements in a contract other than the insurance policy, including a services contract.
Does being the certificate holder make the operator an additional insured?
No. ACORD 25 says that if the holder is an additional insured, the policy must be endorsed. Holder status alone gives no coverage rights.
Who issues the certificate?
Your insurer or your licensed agent. Under Texas law, a certificate is executed by an insurer or agent and issued to someone who is not a party to the insurance contract.
Why do limits on the certificate say they may have been reduced?
The ACORD 25 notes that limits shown may have been reduced by paid claims. Aggregate limits shrink as claims are paid during the policy period.
Sources
- Texas Insurance Code, Chapter 1811 (Certificates of Property and Casualty Insurance). Definition (1811.001), no altering coverage (1811.051), approved forms (1811.052, 1811.103), no misleading certificates (1811.054), not a policy (1811.152), no contract references (1811.154), notice rights (1811.155), void certificates (1811.156).
- ACORD 25 Certificate of Liability Insurance (sample published by NYC DYCD). Standard disclaimer text, additional insured and subrogation notice, cancellation box wording, limits may be reduced by paid claims.
- IRMI glossary: certificate of insurance. General definition of a certificate as evidence of coverage purchased.
- ISN: RAVS Disclaimers. What ISN’s insurance review checks, including endorsements on hiring client request.
This page explains insurance, not law. Have your attorney review indemnity and contract language; our job is making the insurance match it.
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