An acquaintance of mine bought a 2nd-hand, 10-year-old W14ce that had slight separation of the ivoroid binding at the waist. We took it to a Taylor repair guy for a repair quote. The repair guy noted that he could not just push the binding back in place, and that meant that the binding had shrunk. He said that can happen with ivoroid after a number of years (which makes me wonder why Taylor still uses it on some of their guitars). The repair process was to the push the binding back as far as possible, clamp it in place, and fill the gap with numerous applications of superglue.
My point is, that if you can push the binding back in place, then the fix is a simple super slue fix and a bit of buffing. If the binding cannot be pushed completely back, it has shrunk. It's still a super glue fix, but will take multiple applications over several days to fill the gap, and then some light sanding and buffing.
If the guitar dried out enough at some point to shrink the binding, then be sure to look for other issues as well.
