Broker of record
A broker of record (BOR) is the licensed insurance broker or agency that’s officially authorized to represent you to an insurance company.
What is a broker of record in insurance?
An insurance broker represents consumers in their search for coverage and can sell policies from several different insurance companies for a commission. Unlike captive and independent agents, who represent one or more insurance companies, a broker’s primary duty is to the client.
Having a qualified BOR can simplify your commercial insurance needs, providing you with an advocate, support system, and trusted advisor who is legally authorized to represent your small business to insurance carriers and state regulatory boards.
How a broker of record works
A broker of record is officially designated to represent and manage your insurance policy. Here’s how the process works before and after you secure coverage.
Before you buy a policy
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.
After you buy a policy
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.
Can you work with multiple brokers?
Once a policy is activated, your insurance carrier will only recognize one broker per policy. This makes it easier for them to track commissions and know who to communicate with on your behalf.
Before you secure a policy, you’re free to work with more than one broker—but managing multiple brokers can be time-consuming.
Fortunately, Insureon can provide you with free online quotes from top-rated insurance providers. This makes it easy to compare quotes, select your policy, and manage your coverage all in one place.
What is a broker of record letter?
A broker of record letter, sometimes called an agent of record letter, is an official document authorizing a new insurance broker to manage your policies, negotiate terms, handle your claims, and receive commissions on your behalf.
Once this request has been submitted, your insurance company will update its records and transfer servicing rights to the new broker.
When should a small business change its broker of record?
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.
The broker of record change process
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:
- Select a new broker: Assess potential brokers' industry experience, carrier relationships, and ability to handle day-to-day responsibilities such as COIs and endorsements.
- 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.
- Carrier reviews the letter: Your insurer will verify the letter and your identity as the policyholder before accepting the change.
- Carrier updates account records: Once approved, your carrier will update your policy records, transferring account access from your old BOR to your new one.
- 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.
What is an ACORD broker of record form?
The Association for Cooperative Operations Research and Development (ACORD) is a non-profit organization that provides forms and guidelines used across the insurance industry. One of those forms is the ACORD 36 Agent/Broker Record of Change, which is used by many insurers to process broker changes.
Do you need an ACORD form to change your broker?
You don’t always need an ACORD form to change your broker. Documentation varies by carrier. Depending on the carrier, you may need an ACORD 36 broker of record form, a carrier-specific BOR form, or a signed broker of record letter.
Broker of record letter example
Your new insurance broker will typically draft the broker of record letter. Most BOR letters include the policyholder’s business information, policy details, current and new broker details, the effective date of change, and the policyholder’s signature.
Can a broker of record letter be rescinded?
If you need to rescind a broker of record letter, you should immediately contact your carrier and your new and old brokers. While some insurers will simply reverse the request, others will require a new BOR to reinstate your previous broker.
Broker of record vs. agent of record
Although the terms “broker of record” and “agent of record” are often used interchangeably, they can mean different things to different people. Here’s how they generally compare in the insurance industry:
| Broker of record | Agent of record | |
|---|---|---|
Represents | The policyholder | The insurance carrier |
Operations model | Independently shops multiple carriers | Appointed or employed by a specific carrier |
Ideal for | Getting objective advice and competitive quotes | Buying a specific brand-name policy |
Authority | Negotiates on behalf of the policyholder | Binds coverage on behalf of the carrier |
Find the right insurance guidance for your business with Insureon
Insureon can help you secure affordable insurance coverage from top-rated U.S. insurance carriers with one easy online application. And, our licensed insurance agents are here to help you navigate any questions or decisions throughout your insurance-buying process.
As your broker of record, Insureon will help you manage and renew coverage, submit claims, provide risk management guidance, and save time on administrative tasks.
Once you find the right policies for your small business, you can begin coverage in less than 24 hours and get a certificate of insurance (COI) for your small business.
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