Is your current insurance broker truly meeting your business needs? If you’ve never thought to ask this question, it might be time to take a closer look at your Broker of Record (BOR) relationship.
The right BOR is a critical partner in safeguarding your business and ensuring you receive the best possible insurance coverage, claims support, and risk management advice. But when that partnership starts to falter, your business could suffer the consequences.
This guide will help you understand what a BOR does, why businesses choose to switch, and most importantly, the signs that it’s time for you to consider a change.
What Is a Broker of Record (BOR)?
A Broker of Record, or BOR, is the individual or firm authorized to represent an insured party in dealing with insurance companies. They act as the go-to intermediary between you and your insurance providers, ensuring your coverage needs are met and advocating for you when issues arise.
Key Responsibilities of a Broker of record:
- Policy Management: Ensuring you have the right coverage types and limits for your business.
- Claims Handling: Acting on your behalf to streamline and manage claims processes.
- Renewals and Premium Negotiation: Working to secure the most cost-effective and comprehensive policies available.
- Risk Management: Advising on strategies to reduce liabilities and improve overall coverage.
Having a competent BOR is essential because they actively manage your insurance needs, leaving you free to focus on what you do best—running your business.
Why Businesses Choose to Switch Their Broker of Record
There are many reasons businesses decide to change their BOR, the most common being the need for better service and tailored expertise. A BOR change often leads to improved communication, reduced insurance costs, enhanced risk management strategies, and peace of mind knowing your business is protected.
Switching isn’t just about dissatisfaction—sometimes, businesses grow or shift, requiring an expert with specialized knowledge in a particular industry. Or perhaps market conditions change, prompting a fresh approach to insurance solutions.
Whatever your reasons, switching your BOR can result in a valuable upgrade to your business operations and security.
Signs It’s Time to Switch Your Broker of Record
Although deciding to switch brokers isn’t always easy, there are red flags to watch for. Here are six common signs indicating it may be time to make a change.
1. Lack of Communication
Are you always chasing your broker for updates? Poor communication, such as unreturned calls or limited responsiveness, is a major red flag.
If your broker isn’t proactive about keeping you informed, you risk missing important renewal deadlines or experiencing gaps in coverage. A great BOR will ensure consistent, timely communication to prevent costly disruptions.
2. Limited Expertise in Your Industry
Insurance rules and risks vary significantly across industries. If your BOR doesn’t have a deep understanding of your specific field, you could end up with coverage gaps or irrelevant policies.
For example, a tech startup might require specialized cybersecurity insurance, while a construction company may need additional liability coverage. If your broker lacks this expertise, it’s time to look for someone who understands your industry better.
3. Inadequate Coverage Options
Are you noticing that your current policies aren’t meeting your business needs? Whether it’s insufficient coverage levels, outdated policies, or limited options, inadequate coverage could leave your business vulnerable.
The right BOR will have access to a variety of insurance solutions, ensuring you’re fully protected at a competitive price.
4. Poor Claims Support
A slow or ineffective claims process can cause significant headaches for businesses. Whether it’s delayed responses or lack of advocacy, poor claims handling shows that your broker isn’t putting your needs first.
Your BOR should be your strongest ally during stressful claims situations, working efficiently to minimize disruptions and ensure fair settlements.
5. Failure to Offer Proactive Risk Management Advice
Does it feel like your broker only focuses on your existing policies without offering proactive solutions? Risk management is a key service that can help businesses reduce premiums, claims frequency, and liabilities.
A competent BOR will advise on strategies to minimize risks, such as workplace safety protocols or updated operational policies. If yours isn’t taking this step, you’re not getting the full value of their service.
6. Premiums Continue to Rise Without Explanation
Are your premiums increasing year after year without a clear reason? A lack of transparency around premium negotiations or failure to secure better rates could indicate that your broker isn’t advocating effectively for your business.
The right BOR will not only explain rate changes but also work hard to negotiate on your behalf.
How to Initiate a Broker of Record Change
If these issues sound familiar, it may be time to switch brokers. Fortunately, the process of initiating a BOR change is simpler than you might expect.
By following these steps, you can ensure a smooth transition while maintaining the protection your business needs.
Benefits of Switching to the Right Broker of Record
When you choose the right BOR, the benefits can be game-changing for your business.
- Enhanced Communication: Expect timely updates and proactive service.
- Tailored Coverage: Gain access to policies designed specifically for your industry.
- Competitive Rates: Save money through better-negotiated premiums.
- Proactive Risk Management: Protect your business against unforeseen liabilities.
- Stronger Claims Support: Trust that your broker will advocate for you every step of the way.
The right BRO actively works to be a long-term partner in your business’s growth and success.
Take Control of Your Coverage
Your Broker of Record should be a trusted ally in protecting your business and helping it thrive. If you notice any of the signs mentioned in this post, it’s worth evaluating your current BOR and considering a change.
At Arnold Insurance, we pride ourselves on offering expert, tailored solutions to businesses across industries. Whether you’re seeking better coverage, increased transparency, or a proactive approach to risk management, we’re here to help.
Don’t settle for less—Contact Arnold Insurance today to explore how we can support your business’s unique needs.
