Short answer
A broker of record letter, or BOR, authorizes a broker to represent you with a carrier. It generally changes which broker controls and services your account with that carrier. It does not automatically cancel your policy.
What does a broker of record letter do?
What it changes
A BOR tells the carrier which broker to work with for your account. The new broker can then handle quotes, service, and changes with that carrier.
What it does not change
Your policy generally stays in force. The BOR changes who services it, not the coverage itself.
Why can’t two brokers quote the same carrier?
A carrier typically deals with one broker per account. If two brokers approach the same carrier, the carrier may decline to quote for the second one or ask which broker you have authorized. A BOR on file can settle that question.
This differs from asking another broker to shop other carriers. That is common and does not require a BOR.
What timing issues can come up?
Carriers may have a waiting period before recognizing a new broker. The existing broker may also have a rescission period, which lets them respond or withdraw the change. Practices vary by carrier, so ask about the timeline before signing.
Real-world example
An engineering firm asks a second broker for a professional liability quote. The carrier replies that it already received a broker of record letter for that account.
The firm realizes it signed a BOR earlier while exploring options. The carrier will not recognize the new broker until the waiting period ends, so the firm asks the second broker to approach other carriers.
What to check before signing a BOR
- Which carrier and which policies the letter covers
- Whether you have already signed one for another broker
- The carrier’s waiting and rescission periods
- Whether your renewal date falls within that window
- Which broker will service claims and certificates
Common mistakes
- Signing letters with several brokers
- Assuming a BOR cancels the policy
- Waiting until just before renewal to decide
- Not asking the carrier which broker is on file
Related questions
Does a BOR cancel my policy?
No. It generally changes who services the account.
Can I change my mind after signing?
Possibly, depending on the carrier’s rescission period. Ask promptly.
Why can’t two brokers both quote the same insurance company?
Carriers usually accept one broker per account, so a second approach can create a conflict.