Why it matters for your company
Policies take time to issue after you accept a quote. The binder closes that gap: it names the insured, the lines, limits, premium and the effective date, and a certificate can be issued against it the same day.
For a company waiting on a pilot start date or a lease signature, the binder is the moment you can say coverage is in place. Read it against the quote you accepted, because a subjectivity listed on the binder, such as a signed application or a safety document due within thirty days, can void coverage if it is not met.
Related terms
- Certificate of insuranceA one-page summary issued by your broker that shows which policies you carry, their limits and dates, and who the certificate holder is. It proves coverage exists and changes nothing about it.
- EndorsementA page attached to a policy that changes it: it adds coverage, removes it, names a new party, or rewrites a definition. The endorsement controls over the base form wherever the two disagree.
- Broker of recordThe licensed broker an insurer recognises as representing you on a policy or a submission. A broker of record letter from you moves that authority to a different broker.