Policy Binding

“Binding” is the legal act of making an insurance policy active. When an agent “binds” a policy, they are confirming that the insurance company has accepted the risk and that coverage is officially in force as of a specific date and time. The Insurance Cop’s Golden Rule is to never cancel an old policy until you have a signed “Policy Binder” from the new carrier. This binder serves as temporary legal proof of insurance until your formal policy documents are issued and mailed.