What is the maximum duration for a binder to provide immediate protection?

The duration of a binder granting immediate protection is typically established at a maximum of 90 days. A binder serves as temporary insurance coverage that is effective until a formal insurance policy is issued. This time frame allows the insured to have adequate protection while the insurance company processes the application and issues the policy.

This 90-day period is significant because it provides a reasonable amount of time for underwriting and assessment of the risks associated with the coverage requested. During this time, the insured is protected against covered risks as specified in the binder, ensuring peace of mind while waiting for the definitive policy details.

In practice, the 90-day limit also aligns with regulatory guidelines that ensure consumers have fair and prompt access to insurance coverage, preventing gaps that could leave them unprotected during critical periods.