What does Binder mean? Read on to discover the definition & meaning of the term Binder - to help you better understand the language used in insurance policies.
A legal agreement issued by either an agent or an insurer to provide temporary evidence of insurance until a policy can be issued. Binders should contain definite time limits, should be in writing, and should clearly designate the insurer with which the risk is bound. They should also indicate the amount of insurance, the type of policy, and (in the case of property insurance) the perils insured against.
We hope the you have a better understanding of the meaning of Binder.