insurance binder

 

An insurance binder is a temporary legal document issued by an insurance company that serves as proof of insurance coverage until a formal insurance policy is issued. It outlines the basic terms and conditions of the insurance coverage that has been agreed upon between the insurer and the insured. Binders are commonly used in situations where immediate coverage is needed, such as when purchasing a new home or car. They provide a level of protection for the insured while the formal policy is being processed. Typically, once the formal policy is issued, the binder is no longer in effect.