What it means
A broker of record letter, or BOR, authorizes a new agent or broker to represent the business with a specific insurer. It is usually signed by an officer of the business on company letterhead and states the policies and effective date.
Insurers commonly give the current broker a short period to respond before the change takes effect. The new broker then handles service, certificates and renewal discussions for those policies.
A BOR is mostly used when a business wants a different broker but wants to keep its current insurer. It does not change the policy terms.
An example
Ridgeway Building Supply likes its insurer but not the service from its current broker. Its owner signs a broker of record letter naming a new brokerage for the general liability and auto policies, and the insurer confirms the change after its review period.
Names in this example are fictional.
See this term in your own contract.
Send a lease, subcontract or client agreement with the policies you hold. You get every insurance requirement in it, cited to the clause, set against what your policies say. Free, and back within one business day.
Get a free contract checkBroker of record letter, answered
Does changing my broker change my policy?
No. A broker of record change moves service and representation to a new broker, while the insurer, coverage and premium generally stay the same until renewal or a requested change. Commission arrangements between the insurer and brokers adjust separately. The business usually does not pay more because of the switch itself.
When should I send a broker of record letter?
Ideally well before renewal, often sixty to ninety days ahead, so the new broker has time to review coverage and approach insurers. Insurers may give the current broker a short window to respond before accepting the change. Check whether the insurer requires its own format for the letter.
General information only. It is not legal or insurance advice. Only issued policy documents and endorsements describe actual coverage.