A Georgia appellate court recently held that temporary coverage provided by a binder expired after the insured failed timely to pay the premium owed. Popham v. Landmark Am. Ins. Co., 340 Ga. App. 603, 798 S.E.2d 257 (2017).

Upon approval of an application for insurance, the insurer issued a binder providing temporary coverage to the insured. The terms of the binder indicated that failure to submit the premium payment by a certain date would nullify and void coverage. The insurer issued a policy effective on the date of receipt of the premium, but did not receive the premium payment until ten days after the due date. During the ten-day period between when the premium was due and when it was actually paid, one of the insured’s workers was injured on a job site working for the insured. The injured worker sued the insured, who sought coverage under the policy issued by the insurer. The insurer denied coverage, stating no policy was in effect on the date of the incident. The insured sued the insurer for negligence, breach of contract, and failure to pay an insurance claim in bad faith. The insurer moved for summary judgment, which was granted by the trial court. The insured appealed, arguing there was a triable issue of fact as to whether the policy was formed and breached.

The appellate court affirmed, finding there was no policy in effect on the date of the incident. The appellate court noted that the binder clearly stated that coverage was temporary and would be deemed null and void if payment was not received by a certain date.