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Abstract: 

Insurance binders play an important role in the insurance market. They provide interim or temporary protection to the insured during the period after the insured and insurer have agreed upon the essential terms of their insurance deal but before the insurance company issues the formal policy. Even after they expire, binders remain important as a form of proof of the terms of the parties’ insurance deal, and may be relied upon to supply the terms the parties agreed to but which were omitted from the insurance policy.

Keywords: enforceability of insurance binders; authority to bind coverage; binder cancellation; proof of insurance terms; R.D. Management Corp. v. ACE Fire Underwriters Ins. Co.

Affiliations:  1: Clyde & Co US LLP; 2: Clyde & Co US LLP.