ACORD 75 — Insurance Binder

Edition 2016/03 · PDF format

Temporary insurance contract that verifies coverage prior to formal policy issuance. Valid for up to 90 days. Used for both personal and commercial lines to bind coverage immediately.

What is ACORD 75?

ACORD 75 (Insurance Binder) is a temporary contract of insurance, a placeholder for the formal policy. Brokers issue binders when a client needs coverage immediately and the carrier hasn't yet produced the actual policy document.

Unlike a certificate (which is informational), a binder is binding. It creates an enforceable contract of insurance for the period it's in effect, typically up to 90 days. Once the formal policy is issued, the binder is superseded.

Who needs this form

Insureds needing immediate proof of coverage: closing on a property purchase, beginning a new lease, starting a construction project, or replacing an expiring policy.

When to use it

Use when coverage must be in force before the carrier can produce the formal policy document. Most binders are issued at policy inception and superseded within 30–60 days.

Key Fields on ACORD 75

The information the form captures, in the order it typically appears:

Producer information
Insured name and address
Carrier name
Type of coverage being bound
Coverage limits and deductibles
Effective date and time, expiration date and time of binder
Description of property or operations covered
Premium estimate (subject to final policy issuance)
Producer signature with binding authority

Common Mistakes

Recurring errors that delay processing or expose brokers to E&O claims:

Binding coverage without authority

Producers can only bind coverage they've been granted authority to bind by the carrier. Binding without authority creates personal E&O liability.

Letting the binder expire without issuing the policy

If the binder expires and no policy is in force, the insured has a coverage gap. Track binder expirations and follow up with the carrier weekly.

Inconsistent terms between binder and policy

When the policy is issued, terms must match the binder. Differences require a new binder or formal policy endorsement.

Frequently Asked Questions

How long is an ACORD 75 binder valid?

Typically up to 90 days, but the binder itself states the specific expiration date. Most carriers prefer to issue the formal policy within 30 days.

Can a binder be cancelled?

Yes. Carriers can cancel a binder by written notice, generally within state-required notice periods. Insureds can cancel using ACORD 35.

Is a binder enforceable in court?

Yes. A binder is a contract of insurance enforceable on the same terms the underlying policy would have provided. Courts apply the standard policy form filed with the state.

Related ACORD Forms

ACORD 35