ACORD Forms
ACORD 75: Insurance Binder
The ACORD 75 is an insurance binder: a temporary contract of insurance that provides coverage from the moment a risk is bound until the policy issues. That makes it fundamentally different from a certificate. A certificate reports coverage; a binder is coverage.
What it is
The ACORD 75 is an insurance binder: a temporary contract of insurance that provides coverage from the moment a risk is bound until the policy issues. That makes it fundamentally different from a certificate. A certificate reports coverage; a binder is coverage.
Because it is a contract, the details on it commit the carrier, and mistakes commit the agency. Binder authority comes from the carrier agreement, and issuing one outside that authority is one of the fastest routes to an E&O claim.
When it's used
- New business bound today, with the policy days or weeks from issuing, and the insured needs proof for a closing, a registration, or a contract.
- Renewals where the carrier has not issued the renewal policy by the effective date.
- Any situation where coverage has to be evidenced as in force before the policy paperwork exists.
Section-by-section walkthrough
Producer and company
Your agency, and the carrier the risk is bound with.
Watch for: Naming a carrier that has not actually agreed to the risk. A binder is a promise the carrier has to be behind.
Binder number and term
The binder's identifying number, plus effective and expiration dates and times. Coverage starts and ends at the hour shown, not just the day.
Watch for: Skipping the effective time. When a loss happens on day one, the hour matters.
Insured
The named insured and mailing address.
Description of operations, vehicles, or property
What is actually being covered: the operation, the vehicle, the location.
Coverages and limits
The lines bound and their limits and deductibles: property, general liability, auto, garage, umbrella, or workers comp as applicable.
Watch for: Listing coverage or limits the carrier did not agree to bind. The binder is a contract; the insured can rely on what it says.
Additional interest
Mortgagee, loss payee, or additional insured, with the loan number where relevant, so closings can proceed against the binder.
Conditions
The binder is subject to the conditions stated on the form, and it terminates when the policy issues or the expiration date passes.
Watch for: Treating the binder as open-ended. It has an end date, and the coverage ends with it.
Authorized representative
Signature of an authorized representative. Authority is the whole question: sign only what the carrier agreement lets you bind.
In Relay
ACORD Generation is live in Relay. It drafts the ACORD 75 from the client record and the documents you already have, and a person reviews every field before anything goes out. See how →
Common errors
- Issuing a binder without binding authority from the carrier.
- Letting the binder expire before the policy issues, leaving a silent coverage gap nobody notices until a claim.
- Coverage or limits on the binder that do not match what the carrier actually bound.
- No effective time shown, inviting a dispute over a first-day loss.
- Using binder after binder as a substitute for getting the policy issued.
Common questions
How long does an insurance binder last?
Until its stated expiration date or until the policy issues, whichever comes first. Many states also cap binder duration by statute, so a binder is a bridge, not a destination. If the policy has not issued as expiration approaches, chase the carrier or issue a replacement binder before the gap opens.
Is a binder proof of insurance?
Yes, and stronger proof than a certificate. A certificate reports that a policy exists. A binder is itself a temporary contract of coverage, which is why lenders and closings accept it before the policy exists.
Can Relay draft an ACORD 75?
Yes. ACORD Generation is live in Relay. It drafts ACORD forms from the client record and documents you already have, and a person reviews every form before it goes out. Binding decisions stay with your licensed staff.
Related forms
Part of the Relay ACORD form library. Updated 2026-07-11. See how we source content.
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