How to Switch Insurance Agents: The Broker of Record Letter
Not every business owner stays with the same insurance agent forever. Sometimes communication becomes frustrating, service declines, or you simply want a second opinion from an agency that better understands your industry.
If you're considering a change, understanding how to switch insurance agents with a Broker of Record letter can help make the process easier. Many business owners are surprised to learn that in certain situations, they may be able to change agents without immediately changing insurance companies or policies.
What Is a Broker of Record Letter?
A Broker of Record (BOR) letter is a document that authorizes an insurance company to recognize a new insurance agent or broker as the representative for your insurance policy.
In simple terms, a Broker of Record letter allows a business owner to move their policy servicing and representation from one insurance agency to another without necessarily changing insurance carriers. The exact process varies by insurer, policy type, contract terms, and state regulations.
A BOR letter does not automatically alter your coverage. Instead, it typically changes the agent or broker authorized to work on your behalf with the insurance company.
Why Business Owners Switch Insurance Agents
There are many reasons a business owner may decide to move their insurance relationship.
Common reasons include:
Poor communication
Slow response times
Lack of industry expertise
Limited market access
Inadequate policy reviews
Unresolved service issues
Business growth requiring specialized guidance
For contractors and service businesses, insurance often plays an important role in contracts, hiring, and risk management. Having an agent who understands your industry can make a significant difference.
What Does a Broker of Record Do?
An insurance agent or broker often serves as the primary point of contact between your business and the insurance company.
Responsibilities may include:
Reviewing coverage options
Assisting with renewals
Issuing certificates of insurance
Helping with policy changes
Discussing claims processes
Explaining coverage terms
Reviewing contractual insurance requirements
When a Broker of Record change occurs, those responsibilities typically transfer to the new authorized agent.
How a Broker of Record Letter Works
The BOR process is usually straightforward, although requirements vary among insurers.
Step 1: Choose a New Insurance Agent
Before submitting a BOR letter, identify the agency you want to represent your business.
Consider factors such as:
Industry experience
Responsiveness
Market access
Licensing
Customer service
Understanding of your operations
A contractor may benefit from an agency familiar with construction-related insurance requirements, certificates of insurance, additional insured endorsements, and contract review issues.
Step 2: Review Current Policies
Gather information regarding:
Policy numbers
Coverage types
Renewal dates
Insurance company information
Having accurate policy information can help ensure a smooth transition.
Step 3: Complete the BOR Letter
The new agency often assists with this process.
The letter typically identifies:
The named insured
The current insurer
The current agent
The new agent
The policy or policies involved
Specific wording requirements may vary.
Step 4: Submit the Letter
The completed document is usually submitted to the insurance company for review.
The insurer then determines whether the request meets its procedures and requirements.
Step 5: Carrier Review
Once received, the insurer reviews the request and updates its records if approved.
Processing timelines vary among insurance companies.
Does a Broker of Record Letter Cancel Your Policy?
No.
One of the most common misconceptions about BOR letters is that they cancel insurance coverage.
In most situations, a Broker of Record change does not:
Cancel the policy
Change policy limits
Modify deductibles
Alter coverage terms
Instead, it typically changes who services and represents the account.
Coverage changes would generally require separate policy modifications.
Broker of Record vs. Buying a New Policy
These are two very different actions.
Broker of Record Change
Typically involves:
Keeping the same insurance company
Keeping the same policy
Changing agency representation
Policy Replacement
Usually involves:
Moving to a new insurance company
Obtaining a new policy
Potentially changing coverage terms
Business owners sometimes choose a BOR change when they are satisfied with the insurance carrier but not with their agency relationship.
Advantages of Switching Agents Through a BOR Letter
A Broker of Record change may offer several benefits.
Keep Existing Coverage
If you're satisfied with your current insurer, a BOR letter may allow you to maintain the relationship while obtaining different agency representation.
Improved Service
Many business owners seek:
Faster responses
Better communication
More proactive reviews
Industry-specific expertise
A new agency relationship may help address these concerns.
Access to Additional Guidance
Some agencies specialize in helping contractors and service businesses navigate:
Contract requirements
Certificates of insurance
Additional insured requests
Workers' compensation issues
Commercial auto concerns
The right advisor can help identify potential coverage gaps and risk management opportunities.
Situations Where a BOR May Not Be Available
A Broker of Record change is not available in every scenario.
Limitations may arise due to:
Carrier-specific rules
Pending renewals
Marketplace restrictions
Existing underwriting activity
Policy timing requirements
Insurers establish their own procedures regarding BOR requests.
A licensed insurance professional can explain what options may be available for your particular situation.
Questions to Ask Before Switching Agents
Before making a change, consider asking:
What improvements am I seeking?
Is the issue service-related or coverage-related?
Does the new agency understand my industry?
Will the new agency review my contracts?
How are certificate requests handled?
What support is available at renewal?
Carefully evaluating these questions can help ensure the new relationship aligns with your needs.
Contractor-Specific Considerations
Contractors often have more complex insurance needs than many other businesses.
Coverage may involve:
General liability insurance
Commercial auto insurance
Workers' compensation insurance
Inland marine coverage
Equipment coverage
Umbrella liability insurance
In addition, contractors frequently deal with:
Additional insured requirements
Waiver of subrogation requests
Certificates of insurance
Bid requirements
Municipality regulations
An agency experienced in construction insurance may help simplify these ongoing responsibilities.
Signs It Might Be Time to Change Insurance Agents
Every business relationship is different, but some common warning signs include:
Poor Communication
If calls and emails routinely go unanswered, it may indicate a service problem.
Lack of Industry Knowledge
Contractors often need specialized guidance.
If your agent does not understand your operations, important issues may be overlooked.
Limited Policy Reviews
Businesses evolve over time.
An agent should periodically review changes involving:
Revenue growth
New services
Vehicle additions
Employee counts
Contract requirements
Reactive Rather Than Proactive Service
Many business owners prefer an advisor who helps identify issues before problems occur.
Common Misconceptions About Broker of Record Letters
Myth: You Must Change Insurance Companies
Not necessarily.
A BOR letter is often used specifically to avoid changing carriers.
Myth: Coverage Automatically Changes
A Broker of Record letter generally changes representation, not coverage.
Myth: The Process Is Complicated
While procedures vary, many BOR requests are relatively straightforward when handled properly.
Myth: You Cannot Change Agents Mid-Term
Depending on carrier rules and circumstances, some policies may allow agency changes before renewal.
Always verify requirements with your insurance professional.
How to Make the Transition Smooth
To avoid confusion:
Keep copies of policy documents
Notify relevant staff members
Review contract requirements
Confirm certificate request procedures
Schedule a policy review with the new agency
The goal is not simply to change agencies but to create a better long-term insurance experience.
Why the Right Agent Matters
Business insurance is more than a yearly transaction.
For many contractors and service companies, insurance affects:
Project eligibility
Contract compliance
Risk management
Equipment protection
Employee protection
Business growth
The right agent can help your business navigate these challenges while providing ongoing support as your company evolves.
Business owners can learn more about managing and growing their companies through the U.S. Small Business Administration:
Additional insurance education resources are available through the National Association of Insurance Commissioners:
Final Thoughts
A Broker of Record letter allows many business owners to change insurance agents without necessarily changing insurance companies. If you're satisfied with your current insurer but unhappy with service, communication, or industry expertise, a BOR change may provide an alternative worth exploring.
Because procedures vary by policy, insurer, and state regulations, it's important to work with a licensed insurance professional who can explain your available options. The right insurance advisor can play a valuable role in helping your business manage risk, satisfy contract requirements, and plan for future growth.
Frequently Asked Questions
What is a Broker of Record letter?
A Broker of Record letter is a document that authorizes a new insurance agent or broker to represent your insurance policy with the insurer.
Can I switch insurance agents without changing insurance companies?
In many cases, yes. A Broker of Record letter may allow you to change agents while keeping the same insurance carrier and policy.
Does a Broker of Record letter cancel my policy?
Generally, no. A BOR letter typically changes agency representation and does not automatically cancel coverage.
Why would a business owner switch insurance agents?
Common reasons include poor communication, limited service, lack of industry expertise, and the desire for more proactive guidance.
Can I change agents in the middle of a policy term?
Possibly. Availability depends on the insurer's procedures, policy timing, and other factors. Check with a licensed insurance professional regarding your specific situation.
Get a Free Business Insurance Quote From Wexford Insurance
Whether you're reviewing your current insurance program, considering a Broker of Record change, or shopping for new coverage, Wexford Insurance can help. Our team specializes in helping contractors and service businesses understand their risks, satisfy contract requirements, and build insurance programs tailored to their operations.
If you would like guidance tailored to your business, contact Wexford Insurance for a free quote. Our experienced advisors can help you review your current coverage, identify potential gaps, and explore insurance solutions designed for your long-term success.
👉 Request your free, no-obligation business insurance quote today:https://www.wexfordins.com/business-quote
