Short answer
Switching brokers is usually simpler than firm owners expect. You sign a broker of record (BOR) letter, and the new broker sends it to your carrier. Your carrier and coverage stay in place, and the new broker takes over servicing the policy. Timing matters, so it helps to start well before renewal. Carrier rules vary, so confirm the details for your specific policy.
What a broker of record letter is
A broker of record letter authorizes a new broker to represent you with your carrier. It tells the carrier that you want a different broker handling your account.
The letter changes who services the policy. It does not cancel the policy or move you to a new carrier. For many firms, that makes switching brokers feel much less disruptive than they feared.
How switching brokers works step by step
The process usually follows a simple order:
- You sign the BOR letter with the new broker.
- The new broker sends the letter to your carriers.
- The carrier notifies your current broker.
- After any waiting period, the new broker takes over the account.
Many carriers allow a short waiting period, often around five business days, before a BOR takes effect. During that time the current broker may be able to contest it. Rules vary by carrier, so the new broker should confirm the process with each one.
When to start before renewal
Start with a decent amount of time before renewal. A carrier usually works with one broker per account. The BOR needs to be in place before the new broker can market or negotiate the renewal.
If you wait until the final days before the policy expires, there may not be enough time. Starting early gives the new broker room to review your coverage and prepare for the renewal.
How to tell your old agent
Most owners find this the awkward part. A short, courteous note is usually enough. Your carrier handles the formal notice, so your email to the old agent is a courtesy rather than a requirement.
A simple version might read: “Thanks so much for servicing us. We’re going in a different direction this year.”
What stays the same when you change brokers
Your carrier, coverage and premium stay the same until renewal. The BOR changes who services the policy and handles questions, certificates and changes. At renewal, the new broker may recommend adjustments, such as different limits or a different carrier.
You can also reverse course. If you are unhappy with the new broker, another BOR letter can move you back. You are not locked in with any broker.
Real-world example
An engineering firm renews its professional liability policy in four months. The owner feels the current broker responds slowly and wants a change. The owner signs a BOR letter with a new broker and emails the old agent a short thank-you note.
The new broker sends the letter to the carrier. Once the carrier processes it, the new broker begins servicing the policy. The firm keeps the same coverage until renewal. Several weeks before the renewal date, the new broker reviews the policy and discusses options.
What to check before switching brokers
Before switching brokers, review:
- Your renewal date and how much time remains.
- Which carriers hold your policies, since each may handle BOR letters differently.
- Whether you have multiple policies that the new broker should take over together.
- What service you expect from the new broker, such as certificate turnaround and renewal reviews.
A new broker can also help with professional liability questions at renewal, including how to compare two architects and engineers professional liability quotes.
Hardcover insight
Owners often wait a full renewal cycle because they dread the conversation with the old agent. The process itself is usually quick. A brief note and a signed form handle most of it. Starting early also gives the new broker time to review the policy before any renewal decisions are due.
Related questions
Do I have to tell my current broker I’m switching?
The carrier notifies the old broker after receiving the BOR letter. A note from you is a courtesy, not a requirement.
Will switching brokers change my coverage?
No. Your carrier, coverage and premium stay the same until renewal. At renewal, the new broker may recommend changes.
How long does a broker of record change take?
Many carriers allow a short waiting period, often around five business days. Rules vary by carrier, so confirm the timeline for your policy.
Can I switch back to my old broker?
Yes. A new BOR letter can move your account back.
Why does timing matter when switching brokers?
A carrier usually works with one broker per account. The BOR needs to be in place before the new broker can market the renewal.