You can change brokers at renewal or mid-term by signing a broker of record (BOR) letter. Start 90 to 120 days before your renewal date so the new broker has time to market your program. Sequenced correctly, coverage does not lapse, because your carriers keep the same policies in force and only the broker servicing them changes. More than 1,000 companies have switched to WithCoverage in 18 months. before you decide.
The 120-day timeline for switching brokers
Work back from your renewal date. Four months gives the new broker time to take your program to market properly and leaves you time to compare real options.
| Before renewal | What to do | Who owns it |
|---|---|---|
| 120 days | Pull your current policies, loss runs, and schedule of values. List contract-required coverages. Decide what is not working with your current broker. | You |
| 90 days | Get a second opinion or program audit. Compare coverage, limits, and premium to market. Decide whether to switch. | You and the new broker |
| 75 days | Sign the BOR letter if switching. The new broker begins approaching carriers. Some carriers only accept a BOR letter inside a set window before renewal, so check each carrier's rules. | You |
| 60 days | Review the proposals and option comparisons. Confirm coverage terms, not just price. | You and the new broker |
| 30 days | Choose the program. Confirm the effective dates and billing setup. | You |
| Renewal day | Renewal binds. Certificates of insurance are reissued to your counterparties. | New broker |
Waiting until 30 days out is possible, but it limits how many carriers can quote, which tends to narrow your options.
What is a broker of record letter?
A broker of record letter is a signed document that tells an insurance carrier you have appointed a new broker to represent you on your policies. Once the carrier accepts it, the new broker becomes your point of contact for service, renewals and claims questions.
The letter typically includes the following.
- Your legal business name and policy numbers
- The carrier and line of coverage
- The name of the new broker
- An effective date
- An authorized signature
Here is a letter you can copy. Put it on your company letterhead and have the officer responsible for insurance sign it, then send one to each carrier.
Today's date
Carrier name
Carrier street address
City, state, ZIP
Re: Broker of record change
Named insured: Legal business name
Policy numbers: List each policy
Lines of coverage: List each line
Please accept this letter as notice that Legal business name appoints New broker name, of New broker address, as its broker of record for the policies listed above, effective Effective date. This appointment replaces Current broker name.
New broker name is authorized to receive information about these policies, request loss runs, negotiate renewal terms and handle servicing on our behalf. Please share all policy information with them until we notify you otherwise in writing.
Sincerely,
Signature
Name
Title
Legal business name
What the incumbent broker can and cannot do. Carriers usually notify the current broker when a BOR letter arrives, and many give the incumbent a short window to respond. The change is still yours to make, and your current broker cannot cancel your coverage because you sent the letter. The response window is set by each carrier, for example 5 business days at State Fund in California, 10 business days at Encova and 14 business days at Curi.
Does it cost anything? WithCoverage does not charge broker of record switching or termination fees, and you can end the relationship at any time.
Can I switch brokers mid-term?
Yes. A BOR letter can take effect at any point in the policy term, not only at renewal. Mid-term changes make sense when service has broken down, a claim is being mishandled, or you need specialized coverage your broker does not offer. Expect the new broker to need a few weeks to get up to speed on your program before the next renewal cycle. A few carriers only accept BOR letters at renewal, so mid-term changes depend on the carrier.
How do I switch brokers without a lapse in coverage?
Most problems in a broker change come from loose ends, not the letter itself. Work through these before the effective date.
- Policies stay in force. Confirm in writing that no policy is being cancelled or non-renewed as part of the switch.
- Open claims. Ask which broker will handle each open claim, and get the adjuster contact for each.
- Loss runs. Request current loss runs from each carrier. Most markets want them five years deep.
- Certificates of insurance. List every counterparty that holds a certificate, such as landlords, customers and lenders, and confirm who reissues them and when.
- Contract-required coverages. Check lease, lender and customer contracts for required limits, additional insured wording and waivers of subrogation.
- Premium finance and billing. Confirm who bills you, any installment plans in place, and any deposits already paid.
- Effective-date overlap. Make sure the new broker's authority starts the day the old one's ends.
- Audits and endorsements. Move any pending endorsements or payroll audits to the new broker.
If your business has several renewal dates, ask the new broker whether they can be consolidated.
“On top of that, they consolidated nine renewal dates across 17+ policies down to a single renewal for eight of our policies. A massive win on both sides.”
What the free second-opinion audit includes
Before you sign anything, WithCoverage will review your current program at no cost and without an agreement. You do not need to leave your current broker, and they aren't notified.
- A review of your policies, with terms, limits and premiums benchmarked against the market
- Coverage gaps and duplicate spending, identified
- A tailored risk management plan
It usually takes one business day from the moment we have your policy documents. Programs spanning multiple entities or locations take a little longer, and we tell you up front. If you decide to move after the audit, WithCoverage handles carrier coordination, paperwork and timing once you sign.
Results companies see after switching
In 18 months, 1,000+ companies switched to WithCoverage, with average savings of 20 to 40%.
| Client | Situation at renewal | Result |
|---|---|---|
| Rackson Restaurants | 119-store franchisee growing by acquisition | $600K saved |
| Merrimak | Equipment lessor rated as a high-hazard used-equipment renter | 37% rate reduction with exposures up 45%, and nine renewal dates consolidated |
| Eight Sleep | Fast-growing consumer brand | 30%+ saved, with key coverage gaps fixed |
| Chomps | Switched from a large traditional brokerage | Key coverage gaps identified and addressed |
“We saved $600K switching to WithCoverage, as they dramatically reduced premiums, eliminated unnecessary policies, and aligned incentives via a Flat Fee Model.”
How broker pay affects your switch
Broker compensation shapes whose interests the advice serves. Commission ties the broker's pay to your premium, while a flat fee does not. Our guide to flat fee vs commission brokers covers how to compare proposals on that basis.
Frequently asked questions
Will my carrier change if I switch brokers?
No. A BOR letter changes who represents you, not who insures you. Your policies stay with the same carriers, and a new broker may also bring additional markets at renewal.
Does my current broker get notified?
Usually yes. Carriers typically notify the incumbent when they receive a BOR letter and give them a few business days to respond.
What if I have an open claim?
Open claims continue with the carrier. Agree in writing with both brokers who handles each one.
Will I lose my certificates of insurance?
No. Existing certificates remain valid until their policies change, and your new broker reissues them as needed.
Can I get a second opinion without committing to switch?
Yes. WithCoverage's audit has no cost and no agreement, and it does not require you to leave your current broker.
How long does the switch take?
Carriers can process a BOR letter in days, but plan on 90 to 120 days if you want your program fully remarketed before renewal.
Are there fees to switch or to leave later?
WithCoverage charges no broker of record switching or termination fees.
Ready to compare before renewal?
Request a no-cost, no-agreement audit of your current program. Your current broker isn't notified.
Sources
This guide is general information, not legal advice. Broker of record procedures vary by carrier and state, so confirm the details for your policies.