Broker of record

When you’re looking for insurance, a BOR helps by:

• Collecting your business information, including operations, revenue, number of employees, and risk exposures.
• Presenting coverage options, comparing quotes, and explaining complex coverage structures, such as employee benefits.
• Submitting applications on your behalf for policies like general liability, professional liability, cyber insurance, and more.
• Negotiating with carriers on pricing, policy terms, and coverage exclusions.

Once your policy is issued, your BOR becomes your sole point of contact, helping with:

• Handling policy changes like adding endorsements, updating coverage limits, or adjusting your policy as your business grows.
• Issuing certificates of insurance (COIs) when clients or landlords require proof of coverage.
• Supporting claims, helping you understand the process, and advocating on your behalf.
• Managing your renewal, reviewing your renewal quote ahead of your renewal date, and shopping around if needed.

In return, most BORs earn a commission from the carrier on the policyholder’s behalf, which is factored into the policy’s premium.

You can change your broker of record at any time, but here are some of the top reasons you may decide to find a new broker:

• You're not getting the support you need. Many business owners switch brokers if their broker is slow to reply, doesn't send certificates of insurance quickly, or offers little to no renewal assistance.
• Your business has changed. If your business has increased revenue, opened new locations, added new services or products your policy doesn't cover, or hired additional employees, you may face new insurance requirements, such as workers' compensation insurance.
• You need industry-specific expertise. A broker that specializes in your field understands the specific risks your business faces and knows which carriers and policy terms are the best fit. This is especially important for industries with unique exposures, such as contractors, tech professionals, and janitorial businesses.
• You want one point of contact. Consolidating everything under one broker of record puts all your renewals, COIs, and claims in the hands of one trusted professional who can oversee your entire coverage portfolio.

Changing your broker of record requires a few administrative steps to transfer the servicing rights from your current BOR to your new one.

Here's how this process works:

1. Select a new broker: Assess potential brokers' industry experience, carrier relationships, and ability to handle day-to-day responsibilities such as COIs and endorsements.
2. Send a broker of record letter: Your new broker will prepare a broker of record letter for you to sign, authorizing them as your new representative with the carrier.
3. Carrier reviews the letter: Your insurer will verify the letter and your identity as the policyholder before accepting the change.
4. Carrier updates account records: Once approved, your carrier will update your policy records, transferring account access from your old BOR to your new one.
5. Policy servicing transfers: Your new broker of record will take over all account management responsibilities, including renewals, endorsements, and claims support.

Keep in mind that changing your BOR won't affect your active policy. As you go through these steps, your coverage will remain intact.