The ACORD 70 Insurance Binder is the standard document used to confirm that insurance coverage is in force on a temporary basis while the formal policy is being issued. A binder serves as a temporary contract of insurance — it obligates the carrier to provide coverage even before the full policy documents are delivered. For agents, issuing a binder at the right time and with accurate information is a critical part of the placement process.
A binder is used whenever coverage needs to be confirmed immediately: • At the time a new policy is bound — before the formal policy is issued • When a loan is closing and the lender needs evidence of coverage immediately • When a client needs proof of coverage before the policy documents arrive • When coverage is being placed in a specialty market where policy issuance takes time • For real estate transactions where closing requires confirmation of insurance
The ACORD 70 binder confirms:
• Named insured name and address • Description of the covered risk (property address, business description) • Coverage lines bound (GL, property, auto, WC, etc.) • Coverage limits for each line • Effective date and expiration date of the binder (usually 30 to 60 days) • The carrier and policy number (if assigned) • Producer name and contact information • Any conditions or requirements attached to the binder
The binder creates a legally binding obligation — agents who issue binders are committing the carrier to coverage. Agents should never issue a binder before they have confirmed binding authority with the carrier.
Not all agents have binding authority for all coverage lines. Binding authority depends on the agency's agreement with each carrier.
Standard markets typically grant agents binding authority for routine commercial accounts — the agent can commit the carrier to coverage without prior approval. For non-standard accounts, risks outside normal underwriting guidelines, or coverage above certain limits, agents may need to request coverage from the carrier before binding.
For surplus lines placements, binders are issued by the wholesale broker or managing general agent (MGA), not the retail agent. The retail agent should never issue a binder for a surplus lines placement unless they have confirmed binding with the wholesale broker.
Binders are temporary by nature — they typically expire in 30 to 60 days. If the formal policy has not been issued before the binder expires, agents must either:
• Obtain an extension of the binder from the carrier • Request that the carrier expedite policy issuance • Issue a new binder if the carrier grants continuing binding authority
If a binder expires without a formal policy being issued and without an extension being obtained, there is a coverage gap. Agents should track binder expiration dates and follow up with carriers proactively.
Issuing a binder before confirming binding authority with the carrier
Issuing a binder with incorrect coverage information — the binder is a legal document
Not tracking binder expiration dates and letting binders lapse before the formal policy is issued
Issuing a retail binder for a surplus lines placement that requires a wholesale binder
Not obtaining the named insured's signature or acceptance when a binder is issued on their behalf
Send your client a plain-English intake link. When they finish, the completed ACORD 70 and all required companion forms are generated and ready to submit.