A preliminary, temporary insurance agreement that obligates the insurance company to pay the insured if the loss insured against occurs after the binder is issued but before the insurance policy is issued. American Banker Glossary
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An amount of money paid to indicate good faith in a transaction before the transaction is completed. Bloomberg Financial Dictionary
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binder bind‧er [ˈbaɪndə ǁ -ər] noun [countable]
LAW INSURANCE a temporary contract that shows an agreement has been made, and is used until the formal contract has been prepared
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binder UK US /ˈbaɪndər/ noun [C]
► LAW a short document showing an agreement between a buyer and a seller, used for a short period while the complete document is being prepared: »
a binder agreement
»In the case of a real estate purchase, a binder contains the basic terms of the transaction.
»A binder will give insurance coverage for a specified period of time until the actual insurance policy can be issued.
► WORKPLACE a hard cover in which paper documents can be stored: »
Your report will look more professional if it is presented in an attractive binder.
Financial and business terms. 2012.