What is an insurance binder?
An insurance binder is a legal agreement issued by an agent to the insurance company to provide temporary evidence of insurance until a policy can be issued.
Binders typically have definite time limits, are in writing and clearly designate the insurance company 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.
Why does it matter?
A binder is protection for you, the insured. Since insurance companies aren’t always the speediest, it may take time for them to issue you a policy. A binder holds the company responsible as the insurer until a formal policy can be issued.
Does Jones issue insurance binders?
Due to Jones’ rapid workflow, there is no need for insurance binders. After your application, you can get a certificate of insurance often within a matter of hours, so a binder is irrelevant here.
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