CANADIAN INSURANCE TERM
Insurance Binder
Temporary evidence of insurance coverage issued while the formal policy documents are being prepared, subject to the terms stated in the binder.
Plain-language definition. A real policy, endorsement and provincial law can use more specific wording than a glossary summary.
TermInsurance Binder
ContextCanadian insurance
Source typeIndustry glossary
Policy wordingControls claim
What does Insurance Binder mean?
Temporary evidence of insurance coverage issued while the formal policy documents are being prepared, subject to the terms stated in the binder.
A binder is evidence of temporary coverage, not a substitute for reading the final policy once it is issued.
Insurance Binder in practice
A buyer may receive temporary proof that auto or property coverage is in force before the complete policy package is delivered.