No, we aren’t referring to a three-ring binder! In the “insurance world”, a binder is temporary proof of insurance, typically used for a short period of time while a policy is pending issuance or a change to a policy is being processed. While a binder is usually a piece of paper, binders can also be oral agreements. For example, many insurance agents are authorized by the insurance companies to bind certain types of coverage. So if your agent tells you that he has “bound” coverage, then he has just issued you an oral binder. A binder, whether written or oral, lets you know you are covered until you receive the actual insurance policy. Binders are also often used to serve as proof of coverage for banks, either when someone is closing on a new mortgage or financing a vehicle. Binders are usually issued for 30 days.
If you have any questions regarding your current policy or would like to get a quote, visit us online or call us at (401) 723-8510!
If you enjoyed reading this, please subscribe to the Blog Edition of the Loiselle Ledger, the official newsletter of Loiselle Insurance. As a subscriber you’ll receive bi-monthly emails highlighting our latest blog posts. Subscribe Now