A broker of record letter, or BOR, is a short document signed by the employer that tells a carrier or vendor which broker represents the account. Once the carrier accepts it, the new broker can request your data, negotiate on your behalf, and service the plan. Any commission typically moves to the new broker going forward, under each carrier's own rules.
Changing brokers is common and perfectly normal. Carriers allow it because the employer, not the broker, owns the relationship.
A good transition is quiet. The new broker introduces themselves to each carrier, gathers the data, and takes over service without your employees ever noticing. Same plan, same ID cards, same carrier, unless and until you decide to change something.
Timing matters. If you are going to make a change, do it well before your renewal process starts, so your new broker can gather data and build a strategy before quotes go out. Switching in the final 60 days usually means the old broker has already blocked the market and the new one is working with whatever is left.
My advice: pick your broker like you'd pick your attorney or CPA. Find someone whose strategy you understand and trust, sign the BOR, and give them the opportunity to advocate on your behalf.
Questions to ask
- When does our renewal process start, and is there time to change brokers before quotes go out?
- Which carriers and vendors need a BOR letter?
- What will the new broker do in the first 30 days?