Broker of Record: Who They Are and How They Can Help

Posted by Scott Helfrich on Aug 22, 2016 4:11:00 PM

Unmasking the mysterious name that is all over your insurance paperwork, and getting to know them a little better.


The broker of record, or BOR, is a licensed broker who has been designated by a business to manage and represent their insurance needs. The BOR acts on behalf of the business when dealing with the insurance carrier, and may also advise the business on decisions regarding that particular policy.


A BOR can typically receive and mediate all of the quotes and communications between the insurance company and the small business owner. This mediator role allows the BOR to shop around for the best price and coverage that the small business requires, saving the business operators a lot of time and energy. A BOR may also recommend changes or updates to an existing policy that they brokered for a business, but cannot make any updates without the direct consent of the business owner they represent.


If you were to buy a General Liability insurance policy through AP Intego, we would the BOR on the policy.

What is a Broker of Record Letter?

To keep things simple, an insurance company will only recognize one broker to represent your business's insurance needs. If a small business wants to change their BOR on an insurance policy, a Broker of Record Letter must be presented to all the parties involves, including the old broker, the new broker, and the insurance company.


This letter is essentially a clear legal statement establishing the relationship between the business that bought the insurance policy, the insurance company that sold the policy, and the new broker that will mediate the policy as long as it is in effect.

What about a Letter of Authorization?

A letter of authorization is required for your BOR to access your insurance policy's information and request necessary documentation from the insurance company. This can be confusing because it sounds very similar to a Broker of Record Letter. The simplest way to explain the difference between a letter of authorization and a Broker of Record Letter is this: a Broker of Record Letter gives your broker the right to negotiate and communicate on your behalf with the insurance company, where as a letter of authorization gives your broker access to your insurance documents directly from the insurance company.


AP Intego is an innovative national insurance brokerage focused on helping small and medium sized businesses achieve their dreams.

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