Insurance Binder Definition. This often starts at $100,000 but can go as high as $1 million or more on some policies. Carrying an insurance binder means there is a written legal agreement between you and the insurance company.
Remember, the binder’s time span for coverage is quite short and is only meant to provide you with coverage during underwriting. A typical binder consists of just a page or two of information, but it's a valid insurance contract. A binder is a document that acts as temporary proof of insurance.