ACORD 75 — Insurance Binder
What is ACORD 75?
The ACORD 75 is the standardized insurance binder form used to provide temporary evidence of coverage before the formal policy is issued. A binder is a legally binding agreement that puts coverage in force immediately.
Binders are critical in commercial insurance because policies often take weeks to issue after binding. The binder protects the insured during this gap. However, binders also represent significant E&O exposure for brokers because any errors in binder terms become the broker's liability.
When do brokers use ACORD 75?
Issued immediately after a carrier confirms binding of coverage. Used for both new business and renewals when there is a gap between the effective date and policy issuance. Most common in commercial lines where policy issuance timelines are longer.
Key fields explained
Binding Authority
Whether the broker has binding authority from the carrier or if the carrier issued the binder directly.
Coverage Details
Lines of coverage, limits, deductibles, and any special conditions.
Effective/Expiration
Binder effective date, time, and when it expires or is replaced by the policy.
Named Insured
Must match the intended policy exactly.
Premium
Estimated or actual premium for the bound coverage.
Common mistakes to avoid
Binding coverage outside the broker's binding authority limits
Not confirming binder terms match the quoted terms exactly
Failing to follow up when the binder expires before policy issuance
Not documenting the verbal binder confirmation in writing
Related ACORD forms
Download the official form
Official ACORD forms are available from ACORD.org. This page explains how to complete the form — visit ACORD for the actual document.
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