Insurance term
Binder
A binder is temporary proof that your coverage is in effect while the full policy is being finalized and issued. It spells out the key terms and limits and serves as a short-term stand-in for the actual policy. It typically lasts a set number of days until the policy documents arrive.
Why it matters
A binder lets you close on a home, sign a lease, or start a job right away without waiting for paperwork to catch up.