August 2016 Newsletter

Did you know…

Broker of Record letters also known as BORs or AORs (Agent of Record) allows the policy holder to designate a new broker for their insurance policies without changing companies. This allows the new agent to manage the policyholder’s insurance. Once the Broker of record is accepted by the carrier the broker of record may receive copies of all communications to the policy holder and may receive all quotes, policies and notices on behalf of the policy holder. They may also obtain and evaluate insurance quotes and policies and recommend changes to existing policies. This can be a great way to add to your client base. Remember, in order to be compensated for the BOR, they must be sent into the carrier within 60 days of the expiration of the current policy but no later than the expiration date of the current policy.

However, obtaining the BOR/AOR is the first step in converting a client to your agency. The BOR must be sent to the carrier and they must notify the other agent of this change. The carrier must also accept this change. Newly completed accord applications (in full) and currently valued loss runs must also accompany the BOR request as a BOR/AOR is considered new business to the agency and the applications and loss runs are a requirement of the carrier, and they must have them on file. Also, by obtaining the completed and signed application it not only allows the agent to have a better understanding of what the risk consists of and what their losses are, but the agent also has the insureds acknowledgment that the information provided to the agent is correct. Without this on file, if a loss were ever to occur or a problem arose as a result of the information provided, it could create an Errors an Omissions claim on the part of the agent due to a lack of insured signature on file.

BOR/AORs may also be used during the quoting process of new business. Perhaps the client has gone to another agent before finding you and they have quoted the carriers you represent and blocked you from quoting these carriers. BOR/AORs are acceptable to use in a situation such as this and just like the renewal BOR/AOR new applications with the insureds signature are required.

Let us help you round out all of your accounts and become a million dollar agency!


Restaurant – Guard

Painting Contractor – First Comp

Lessors Risk – Travelers

Air Conditioning Sales/Service – Liberty

Restaurant – Allied

Boat Repair Shop – Amtrust

Concrete Contractor – Pinnacol

Lessors Risk – State Auto

Technical Consultant – Travelers

Painting Contractor – Liberty

Food Distributor – Amtrust

Gutter Repair – Liberty

Non-Profit Organization – The Hartford

Farm/Ranch – Travelers

Electrician – Pinnacol

Paving Contractor – Amtrust

Lessors Risk – Guard

Auto Body Shop – Guard

Landscaper/Tree Trimmer – RPS

Condo HOA – Travelers

Music Studio – The Hartford

Auto Body Shop – Guard

Commercial Highlight:

Performance Bond: A written guaranty from a third party guarantor (usually a bank or an insurance company) submitted to a principal (client or customer) by a contractor on winning the bid. A performance bond ensures payment of a sum (not exceeding a stated maximum) of money in case the contractor fails in the full performance of the contract.

Performance bonds usually cover 100 percent of the contract price and replace the bid bonds on award of the contract. Unlike a fidelity bond, a performance bond is not an insurance policy and (if cashed by the principal) the payment amount is recovered by the guarantor from the contractor. Personal Lines Highlight:

Pet Insurance: A policy purchased by the owner of a pet that will lessen the overall costs if expensive medical bills are incurred by that pet. This is similar to health insurance policies except that it relates specifically to pets and will cover, either fully or in part, the often expensive fees that are incurred during veterinary procedures. Pet insurance started in the U.S. in 1980, and was the first policy was sold in 1982 for television’s Lassie.

The cost and coverage changes with which policy you get and for what type of animal you’re insuring. For instance, it costs more for an outdoor cat than an indoor, and premiums are higher for the percentage of coverage you wish to buy.

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