When you buy an insurance policy, your coverage begins as soon as someone with binding authority signs off on it, effectively stating “coverage starts on this date.” When an insurance company gives someone the power to commit the company to insurance contracts, that person has binding authority. Often, the agent from which you buy the policy will have binding authority, so your coverage will begin right away. Other times, the documents will need to be reviewed and signed by a senior agent or an underwriter before the coverage is bound.