What is BOR – Broker of Record Letter?
A BOR, or Broker of Record Letter, is a formal document signed by an insurance policyholder that designates a specific insurance broker as their authorized representative. This document allows the broker to handle all matters related to the policy, including communicating with the insurance carrier, negotiating renewals, and making policy changes on the client’s behalf.
The BOR letter is crucial when a policyholder wishes to switch brokers but maintain the same insurance provider. By signing this letter, the client transfers the management of their existing policies to the new broker without having to cancel or rewrite their coverage. It is common in business insurance, including property and liability insurance, to streamline the management of complex policies.
For insurance companies, the BOR clarifies who has the authority to make decisions on behalf of the insured. Once a BOR letter is submitted to the insurer, the newly assigned broker gains access to the account, and the previous broker’s authority is revoked.
A BOR letter can help policyholders ensure they receive the most competitive pricing and service by allowing them to switch brokers without disrupting their coverage.