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Broker of Record / Agent of Record

Broker of Record / Agent of Record

If you are actively shopping for an insurance policy for your home or business, you may be asked to sign a broker of record or agent of record letter at some point during the process. While it may seem like a small thing, it can affect the quotes you are able to get for insurance. Here’s the scenario:  your insurance renewal just showed up with a huge increase. You decide to shop around and contact a couple of brokers and insurance companies and put them to work getting quotes for you. Suddenly, one or both brokers is telling you they need an agent of record or broker of record letter because “the market is blocked”. Should you sign? What is a Broker/Agent of Record Letter? An Agent of Record (AOR) or Broker of Record (BOR) letter is a document that you must sign that says you are naming an agent or broker as your representative to negotiate coverage and premiums with a particular insurance company. It may include a statement saying that you wish to rescind a certain waiting period (usually 10 days), which means that the agent or broker can receive quotes from the insurance company right away. Why Do You Need an AOR or BOR? Independent brokers and agents are able to access many insurance companies. When you submit an application, your broker will go to all of the available insurance companies that will be most likely to write the insurance for your home or business. Unfortunately, many brokers have access to the same insurance companies. If an insurance company receives more than one application for the...
The Best Way to Shop Your Insurance

The Best Way to Shop Your Insurance

If you’re like many businesses, you are looking for ways to cut your expenses. That can mean anything from changing the brand of pens you use to laying off staff. Sometimes the most noticeable increase in expenses comes when your insurance renewal shows up with an increase. The best way to decrease insurance premiums is by shopping your coverage. There are many bad ways to do this, and a really good one. Don’t Shop Online Many insurance companies offer websites where you can complete an online application and receive an instant quote. These may seem like a great idea, but are you getting what you need, or just what you pay for? Sure, shopping your business insurance online at 3 am while eating leftover pizza in your pajamas sounds great now. After completing the fourth online application and receiving a fourth wildly different quote, you may start to feel like this is more trouble that it is worth. In addition, are you really getting the insurance that your business needs? One-size-fits-all insurance coverage is a myth. Every business has different needs and there are probably things your business needs coverage for that the online application isn’t asking about. That is the stuff that won’t be covered. Don’t Go Everywhere Another seemingly good idea is to get a whole bunch of different insurance brokers or insurance companies working on your insurance quotes at the same time. This can also be a lot of work. You may be making a lot of phone calls or insurance agency visits, completing more applications, and fielding a lot more questions and quotes. The good...