A formal statement or written certification of an insurance policy.
A binder is often requested by third parties who have an interest in the insurance such as, in the case of mortgaged real property, the mortgagee (the bank).
A binder is also often issued by the insurer as a form of interim or temporary confirmation of coverage while the application has been approved but the receipt, by the insured, of the insurance policy documentation from the insurer's head office is still outstanding.