Once a client chooses you as their new broker, a broker of record (BOR) letter can move the existing commercial insurance account to your agency. The client does not need to cancel the policy or get a new quote.
But winning the account is not only about price. A strong renewal approach also depends on carrier access, the current carrier and the BOR waiting period. Your renewal strategy should start before the policy renewal gets too close.
This guide is for commercial P&C producers and agency owners who want to win accounts from an incumbent broker. It is not for business owners who are thinking about changing brokers.
Why Do Some Broker of Record Letters Never Process?
A current carrier can reject your BOR letter if your agency does not have the right Broker Agreement with that carrier. This agreement lets your agency service the policy and earn commission.
So, a BOR letter alone is not enough. Your commercial insurance agency also needs access to the current carrier before it can take over the active policy.
Chubb says a BOR cannot be filed when the new broker does not represent the insurer currently on the policy. State Fund California requires a valid Broker Agreement before a broker can become BOR.
Two retail agents can send the same BOR letter and still get different results. The agent with access to the current carrier starts from a stronger position.
Before you approach the client, check your carrier appointments. Then learn how to build a commercial insurance prospect list around accounts your agency can actually take over and their X-dates.
What a Producer Agreement Is
A Broker Agreement, also called a producer agreement, is a contract between your agency and the insurance carrier. It lets your agency work with the carrier, service policies and earn commission. Without this agreement, the carrier may reject the BOR letter.
What to Check Before You Send the Letter
Check these three things first.
- Your agency is appointed with the client’s current carrier
- The BOR letter names the carrier and only the policies you want to move, such as general liability (GL), a business owners policy (BOP) or workers’ compensation insurance
- The letter has a current date and is not backdated
The Rescission Window is Where the Account is Won
Some carriers give the incumbent broker a short period to respond after you send a BOR letter. State Fund California, for example, gives the incumbent broker 5 business days after notice. The exact time depends on the carrier and its BOR rules. NAIC also provides producer licensing information for each state.
During this time, the incumbent agent may call the client and try to protect the existing insurance relationship. Make this part of your renewal approach and prepare the client for that call before you send the BOR letter.
Why Quoting Against the Incumbent Usually Fails
Once the incumbent broker sends a full application to the current carrier, another retail agent may not be able to get a quote from that same market. This is called market blocking. So, trying to beat the current broker with another quote may not work. The carrier may already be tied to the first broker.
A BOR letter may help when the client chooses you as the new broker. It can move the insurance relationship to your agency without starting another price fight. If you need to start the conversation before the client is ready to quote, these cold calling insurance scripts include examples for prospects who already have coverage.
When to Start, Timed to the Renewal
Your renewal approach should start before the policy renewal. Producers often call the renewal date the X-date, and a clear renewal strategy helps you approach the account at the right time.
Commercial accounts renew on a predictable cycle, so reach the client before the incumbent broker starts remarketing or sends the account to carriers. If you outsource this outreach, our guide on how to choose a commercial insurance lead generation company explains what to check around X-dates, carrier appetite and qualified appointments. If the renewal process has already started, check the carrier’s BOR rules before making the change.
So, timing matters. A good renewal strategy starts early and avoids disrupting submissions already tied to the current carrier.
Broker of Record or Competitive Quote, Which Wins?
A BOR letter lets you take over a commercial insurance account without starting a full new quoting process. A competitive quote can lead to market blocking and a price fight.
Use a BOR letter when the client wants to keep the same coverage but wants a better insurance relationship or a more proactive service plan. Use a new quote when you have access to a better carrier or market.
So, the choice depends on your carrier access and why the client wants to switch. Our commercial insurance lead generation service helps producers reach qualified accounts around renewal windows before the client reaches the quote or BOR decision.
What to Say to Make an Owner Switch
Show the owner one risk, coverage gap or service problem the incumbent agent has not solved. Then explain your proactive service plan and use simple question sequences to uncover what the client wants from a new broker. Do not attack the current broker. Focus on what you can do better.
A proactive service plan and a better insurance relationship can matter more than a small price difference. You can also ask for a conditional commitment, such as whether the owner would consider switching if you solve the service gap.
If the owner feels ignored or unsupported, they may be more open to switching. For a real example of reaching commercial insurance decision-makers, see our insurance lead generation for Voyage Insurance case study.
Contrast Without Criticizing
Show the owner how your proactive service plan is different from the incumbent agent’s current approach. A simple coverage review can help you find a gap, such as exposure tied to a manufacturing defect, and explain your value without criticizing the current broker.
How to Reach Commercial Prospects Who Are Not Shopping
Most commercial insurance buyers are not shopping for a new broker, which is why outbound lead generation works for commercial insurance when timed to the X-date. Book the meeting before the incumbent broker starts remarketing.
The meeting comes first, the BOR letter later. Our insurance appointment setting service helps book that first conversation with qualified prospects early.
CallingAgency’s commercial insurance lead generation services book those meetings around each prospect’s X-date, cycle after cycle. Early outreach puts you in front of the owner first.
What Are the Real Risks of a Broker of Record Switch?
Three main risks can come with a commercial insurance BOR letter and account switch.
- An errors and omissions (E&O) claim from a poor handoff
- Damage to your relationship with the current broker
- A rejected BOR from an overly broad letter
Before the switch, review the active policy, full policy schedule, loss runs and Statement of Values (SOV). Loss runs show past claims. The SOV lists the insured property and its values. Missing these details can create coverage problems.
Keep the BOR letter clear and specific. Name only the carriers and policies you want to move.
The client should also sign only one BOR letter. Two letters can confuse the carrier and delay the change while it decides which broker should represent the account.
Handle the switch carefully and keep the process clear for everyone.
FAQ
What is a broker of record letter?
A broker of record, or BOR letter, lets a commercial insurance client name a new broker for an active policy or group of policies. It ends the old broker’s authority but does not cancel the coverage. The ACORD Broker of Record form, often ACORD 36, is commonly used to document this change.
What is the difference between a BOR and an AOR letter?
A BOR means Broker of Record, while AOR means Agent of Record. Both are used to name the producer who represents the client on specific insurance policies. The term used often depends on the carrier, agency and type of insurance.
What is the difference between a BOR and a letter of authorization?
A letter of authorization (LOA) lets a broker ask a carrier for a quote without replacing the current broker. A BOR letter changes the broker responsible for the commercial insurance account. An LOA is better when you only need permission to get a quote.
Can you rescind a broker of record letter?
Yes, depending on the carrier’s BOR rules. Some carriers allow a short period for the change to be challenged or rescinded. State Fund California, which operates in the State of California, gives the incumbent broker 5 business days after notice.
Does a BOR require re-quoting the policy?
No. A BOR letter can move an active policy to a new broker without requiring a full new quote. The coverage can stay the same. A competitive quote requires a new marketing process.
Do you get paid right away on a BOR account?
Not always. The old broker may keep the commission until the policy renews. The new broker may start earning commission at renewal. The exact rule depends on the carrier.
