What must brokers provide clients with before binding coverage?

Brokers are required to provide clients with a clear explanation of coverage terms before binding coverage to ensure that the client fully understands what the insurance policy entails. This includes informing clients about the scope of coverage, exclusions, limitations, and any endorsements that may apply. By offering a transparent overview of these terms, brokers facilitate informed decision-making by clients, which is crucial in ensuring that they choose coverage that adequately meets their needs.

Furthermore, providing this clarity helps establish trust between the broker and client, aligning with the fiduciary duty brokers have to act in the best interests of their clients. Understanding the details of coverage is vital, as it affects claims processes and overall satisfaction with the insurance product.