Broker of Record (BOR)
A broker of record (BOR) letter is a written statement signed by the insured telling an insurer that a named broker or agent is its authorized representative on specified policies, so the insurer can share information and deal with that broker.
Last updated October 13, 2026
How a broker of record letter works
The insured signs a letter addressed to the insurer that identifies the policies, names the broker being appointed, and states the effective date. Once the insurer accepts it, that broker becomes the recognized point of contact for the account. Insurers commonly decline to discuss an account with anyone other than the broker or agent of record.
The letter is used when a company changes brokers mid-term, when it wants a second broker to approach a specific market, or when a broker is appointed on a new placement. It usually covers named policies, not the insured's entire insurance program, and it does not by itself rewrite the policy or change its terms.
In New York, the Department of Financial Services has noted that no statute or regulation governs broker of record letters and that their effect depends largely on the contracts and practices of the parties. Insurer procedures, including whether the incumbent is notified or a waiting period applies, therefore vary.
Example
A hypothetical growth-stage company is unhappy with its current broker's service two months before its liability policy renews. The CFO signs a BOR letter naming a new broker for that policy. The insurer acknowledges the letter and begins sharing renewal information and loss runs with the new broker, subject to the insurer's own process.
Broker of record vs. related terms
- Wholesale broker. A wholesale broker works with retail brokers to reach specialty insurers. A BOR letter can name a retail broker, a wholesale partner or both, depending on how the account is placed.
- Managing general agent. A managing general agent is authorized by an insurer to underwrite or administer business on its behalf. A BOR letter instead says who represents the insured.
- Binding authority. A BOR letter does not give a broker authority to bind coverage. Binding authority comes from the insurer. See binder for what follows once coverage is bound.
- Replacing a policy. A BOR letter changes who services the account. It does not by itself cancel, rewrite or change the terms of the policy. Replacing coverage is a separate placement.
- Agent of record. Some states and insurers use this phrase for the same idea.
A second example: a limited BOR for one market
A hypothetical company wants a second broker to approach one particular insurer that its current broker has not been able to reach. The company signs a limited letter naming the second broker for that insurer only and for specific policies. The insurer acknowledges it and recognizes the second broker for that submission, while the current broker continues on the rest of the program. Because insurers may recognize only one broker per submission, the company confirms in advance which broker approaches which market.
What to watch for
- Scope: check exactly which policies and lines the letter names.
- Timing: insurers set their own effective-date and notice practices, and a letter signed close to renewal may not be honored in time.
- Markets already approached: when several brokers approach the same insurer, the insurer may recognize only one, which can block competing submissions.
- Commission and fees: the change usually moves servicing rights and compensation to the new broker, so understand how the new broker is paid.
- Wholesale placements: an insurer may require that a retail broker keep working through the wholesale broker it originally used.
Why it matters for technology, AI, fintech and digital-asset companies
Specialty risks are often placed through a wholesale market, so a BOR letter may need to name both a retail broker and a wholesale partner. Signing overlapping letters with several brokers during a competitive process can leave the company unable to get quotes from some markets, so it helps to decide who approaches which insurer before signing.
Questions to ask your broker or underwriter
- Which policies, lines and policy numbers does the letter name?
- What is the effective date, and does the insurer require advance notice to the incumbent or apply a waiting period?
- Does the insurer accept electronic signatures, and does it send written acknowledgment?
- How will the new broker be paid, and does anything change for fees, commissions or how premium is billed?
- Does the current account involve a wholesale broker, and should that relationship stay in place?
- How will open claims, pending endorsements, new claim notices and loss runs be handed over?
- Is the named insured spelled exactly as it appears on the policy?
Common mistakes
- Signing several overlapping letters. Competing letters can leave the company unable to get quotes from some markets.
- Describing the scope too broadly. A letter that covers more policies than intended can disrupt lines that were working well.
- Signing close to renewal. The insurer may not process it in time to affect that renewal.
- Skipping the handoff. Open claims and pending endorsements can fall between brokers without a plan.
- Misnaming the named insured. A mismatch can delay acceptance.
- Not confirming acceptance. Without acknowledgment from the insurer, the letter may not have taken effect.
How broker of record letters show up for fast-growing companies
Funding rounds, a new stage of growth or a move into a new line of business often trigger a review of the broker relationship. Companies buying surplus lines coverage for AI, fintech or digital-asset risks work through wholesale markets, which makes the letter a decision about both the retail and wholesale relationships. Plan the renewal strategy well before signing: decide which broker approaches which insurer, what the underwriting submission will include and who owns the timeline. See directors and officers liability, cyber and tech E&O and startup insurance by stage for coverage lines where timing matters.
Related terms
Frequently asked questions
What is a broker of record?
A broker of record (BOR) letter is a written statement signed by the insured telling an insurer that a named broker or agent is its authorized representative on specified policies, so the insurer can share information and deal with that broker.
What does a BOR letter do?
It tells the insurer, in writing and over the insured's signature, that a specific broker is authorized to represent the insured on named policies. The insurer can then release information and discuss coverage with that broker. It typically transfers servicing rights and compensation but does not change policy terms.
Can a company switch brokers in the middle of a policy term?
Often yes, because a BOR letter can be signed at any time and the policy stays in force. Practices vary by insurer, though, including notice to the incumbent and effective dates, and any contract with the outgoing broker may also matter.
Can two brokers hold a BOR for the same policy?
Generally only one broker is recognized as the representative on a policy at a time, and an insurer may decline to work with a second broker on the same account. Companies that want several brokers to approach markets usually assign each broker specific insurers first.
Does a broker of record letter cancel my current policy?
No. The letter changes who represents you with the insurer, not the policy itself. Coverage, limits and terms continue unless you separately cancel or replace the policy.
How long does a BOR letter take to become effective?
It varies by insurer. Some process letters quickly, while others apply a waiting period or notify the incumbent first. Ask the insurer, or have your broker ask, how it handles the letter and when it takes effect.
Can I revoke a broker of record letter?
Usually by sending a new written instruction to the insurer, such as a letter naming a different broker or withdrawing the first one. Insurers have their own procedures, so check how yours handles changes.
Does changing brokers change my premium?
Not by itself. The insurer sets premium based on underwriting and the policy terms. A change of broker can change servicing, fees and how compensation is paid, so ask how the new broker is compensated.
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