Broker of Record Letter: What It Is + Free Template for California Businesses

If you've ever wanted to change your insurance agent without changing your actual insurance policy, a Broker of Record (BOR) letter is the tool you need. It's one of the simplest, most powerful documents in the insurance world — yet most business owners have never heard of it.

A Broker of Record letter lets you transfer your existing insurance policy from one agent or broker to another. Your coverage stays exactly the same. Your premium stays exactly the same. Your carrier stays exactly the same. The only thing that changes is who services your account — who answers your calls, manages your renewals, and advocates on your behalf.

In this guide, we'll explain exactly what a BOR letter is, how it works under California law, when you should use one, and what to expect after you submit it. We've also included a free, ready-to-use template you can copy and customize today.

At TSM Insurance, we process BOR letters regularly for business owners across the Central Valley who want better service without the hassle of re-quoting their entire insurance program. We'll walk you through the entire process.

What Is a Broker of Record Letter?

A Broker of Record (BOR) letter is a formal written request from a policyholder to their insurance carrier, instructing the carrier to change the agent or broker of record on their policy. In plain English, it tells the insurance company: "I want a different agent to handle my account from now on."

Here's what makes it such a powerful tool:

• Your insurance policy does not change in any way — same carrier, same coverage, same limits, same deductibles, same premium, same effective dates.

• It's entirely your right as the policyholder. You don't need your current agent's permission or cooperation.

• It typically takes effect within 5–15 business days after the carrier receives it.

• It costs you absolutely nothing. There are no fees from the carrier, your new agent, or your outgoing agent.

• It can be used for both commercial and personal insurance policies.

Think of it like changing the property management company on your rental property. The building doesn't change. The tenants don't change. The lease doesn't change. Only who manages it changes.

Who Can Submit a Broker of Record Letter?

Only the named insured (the policyholder) or an authorized representative can submit a BOR letter. Your new agent cannot submit it on your behalf without your written authorization. In the case of a business, this is typically a business owner, corporate officer, managing member, or other authorized representative with signatory authority.

When Should You Use a Broker of Record Letter?

A BOR letter is the right tool in several common situations:

Scenario 1: You're Happy with Your Carrier but Not Your Agent

Your insurance coverage and carrier are fine, but your current agent is unresponsive, doesn't provide annual reviews, or doesn't proactively manage your account. A BOR letter lets you keep your exact same policy and carrier while switching to an agent who actually provides the service you deserve.

Scenario 2: You Want Your New Agent to Handle Your Upcoming Renewal

Your policy renews in 30–60 days and you want a new agent to handle the renewal — to negotiate on your behalf, explore endorsement options, and manage the process. Submitting a BOR letter before renewal gives your new agent authority to work with the carrier on your behalf.

Scenario 3: You Want to Switch Mid-Policy

Instead of waiting for renewal, you want to switch agents right now — today. A BOR letter lets you do that without waiting for any expiration date. Your policy continues uninterrupted with the new agent taking over servicing immediately upon carrier processing.

When a BOR Letter Is NOT Needed

A BOR letter is NOT needed if you're switching to a completely different insurance carrier. In that case, your new agent simply writes a new policy with the new carrier, and you cancel the old one at the same time. The BOR letter is only relevant when you want to keep the same carrier and same policy but change the agent who services it.

For a comprehensive overview of the full switching process — whether you're using a BOR letter or switching carriers entirely — read: How to Switch Business Insurance Agents in California.

How Broker of Record Letters Work Under California Law

California does not have a single specific statute governing BOR letters, but the practice is well-established and recognized by the California Department of Insurance (CDI). Here are the key legal and practical points every California business owner should understand:

• Right to choose your agent: Under California Insurance Code and CDI regulations, policyholders have the absolute right to choose their agent or broker. No carrier can refuse a valid BOR letter submitted by the named insured.

• Carrier processing: A BOR letter must be signed by the named insured (or authorized representative) and delivered directly to the insurance carrier. Most carriers accept letters via mail, fax, or email to their agency services or underwriting department.

• No agent veto: The outgoing agent has no legal right to block, contest, or delay a BOR letter in California. They may contact you to try to retain your business — which is their right — but they cannot prevent the transfer from being processed.

• Commission transfer: The commission on your policy simply transfers from the outgoing agent to the incoming agent. This is an internal carrier matter and has absolutely no effect on your premium.

• No CDI approval required: Unlike some agent appointment changes, a BOR letter does not require CDI approval or notification. It is a private transaction between the policyholder and the carrier.

Important Timing Considerations

While a BOR letter can be submitted at any time, there are some timing nuances to be aware of:

• Near renewal: If submitted too close to renewal (within 15–30 days), some carriers may not process it in time for the current renewal cycle. For best results, submit at least 45–60 days before renewal so your new agent has time to review and negotiate the renewal on your behalf.

• Mid-term: Submitting a BOR letter mid-term is perfectly valid and common. The new agent takes over servicing immediately upon carrier processing. Your policy terms remain unchanged.

• During an active claim: If there's an active claim, the BOR letter does not affect the claim in any way. The claim continues to be handled by the carrier's claims department, regardless of which agent is on record.

• Multiple policies: If you have multiple policies with the same carrier, you can include all of them in a single BOR letter. For policies with different carriers, you'll need a separate BOR letter for each carrier.

If you're considering a mid-policy switch, read our guide: How to Change Your Insurance Agent Mid-Policy in California.

Step-by-Step: How to Submit a Broker of Record Letter in California

Step 1: Choose Your New Agent

Before submitting a BOR letter, make sure you've selected your new agent and confirmed the following:

• They have an active appointment with your current insurance carrier (they can verify this for you)

• They are a licensed insurance agent or broker in California (verify at insurance.ca.gov)

• They are a good fit for your business in terms of industry expertise, responsiveness, and service model

Our guide on signs it's time to switch your insurance agent can help you evaluate whether a change is warranted and what to look for in a new agent.

Step 2: Gather Your Policy Information

You'll need the following details for the BOR letter:

• Your full legal business name exactly as it appears on the policy declarations page

• Policy number(s) for every policy you want to transfer

• Insurance carrier name (the company, not the agent)

• Your new agent's full name, agency name, and California license number

• Your new agent's agency address, phone, and email

Step 3: Write the BOR Letter

Use the template we've provided below. The letter should ideally be typed on your company letterhead and must be signed by the named insured or an authorized representative of the business. A handwritten letter is legally valid, but a typed letter looks more professional and reduces processing errors.

Step 4: Submit the Letter Directly to Your Insurance Carrier

This is important: send the completed BOR letter directly to your insurance carrier — NOT to your current agent. Your current agent is not obligated to forward it, and sending it to them could delay the process.

Most carriers accept BOR letter submission via:

• Email to the carrier's agency services, underwriting, or policy administration department

• Fax to the carrier's agent change department

• Certified mail to the carrier's home office or regional office

Your new agent can usually provide the correct submission address, email, or fax number for your specific carrier.

Step 5: Confirm Processing

Follow up with the carrier (or ask your new agent to follow up on your behalf) within 5–10 business days to confirm the BOR has been received and processed. Once confirmed, your new agent is officially the agent of record on your policy and can begin servicing your account immediately.

Free Broker of Record Letter Template for California Businesses

Below is a ready-to-use BOR letter template. Simply fill in the bracketed fields with your specific information, print on your company letterhead (if available), sign, and submit directly to your carrier.

──────────────────────────────────────────────────────────────────────

[YOUR COMPANY LETTERHEAD]

[Date]

[Insurance Carrier Name]

[Carrier Address]

[City, State, ZIP]

RE: Broker of Record Change — [YOUR BUSINESS NAME]

Dear Sir or Madam,

I, [YOUR FULL NAME], as [TITLE] of [YOUR BUSINESS NAME], the named insured on the policy(ies) listed below, hereby request that the Broker/Agent of Record on the following policy(ies) be changed effective immediately:

Policy Information:

Policy Number(s): [POLICY NUMBER(S)]

Policy Type(s): [e.g., Commercial Package Policy, General Liability, Workers' Compensation, Commercial Auto]

Policy Period: [EFFECTIVE DATE] to [EXPIRATION DATE]

Current Agent/Broker: [CURRENT AGENT NAME / AGENCY NAME]

New Broker/Agent of Record:

Agent Name: [NEW AGENT NAME]

Agency Name: [NEW AGENCY NAME]

California License Number: [LICENSE NUMBER]

Agency Address: [NEW AGENCY ADDRESS]

Phone: [NEW AGENCY PHONE]

Email: [NEW AGENCY EMAIL]

Please reassign the above policy(ies) to the new Broker/Agent of Record listed above, effective immediately. All commissions, correspondence, policy documents, and servicing authority should be directed to the new Broker/Agent of Record.

This letter serves as my/our official authorization and is binding. Please confirm processing of this change in writing to both the new Agent of Record and the undersigned.

Sincerely,

___________________________________

[PRINTED NAME]

[TITLE]

[BUSINESS NAME]

[DATE]

[PHONE NUMBER]

[EMAIL ADDRESS]

──────────────────────────────────────────────────────────────────────

Tips for using this template:

·         If you have multiple policies with the same carrier, list them all in the Policy Information section.

·         If you have policies with different carriers, create a separate BOR letter for each carrier.

·         Use the exact business name that appears on your policy declarations page.

·         Keep a copy of the signed letter for your records.

·         Send via a method that provides confirmation of receipt (email with read receipt, fax with confirmation, or certified mail).

Frequently Asked Questions About Broker of Record Letters

Does a BOR letter cost anything?

No. Submitting a Broker of Record letter is completely free. There are no fees from the carrier, no fees from your new agent, and no fees from your outgoing agent. The only thing that changes financially is which agent earns the commission — and that has no impact on your premium.

Will my rates change after submitting a BOR letter?

No. Your premium remains exactly the same after a BOR letter is processed. The letter changes only the servicing agent — it has no effect on your coverage, limits, deductibles, or pricing. If your new agent later identifies opportunities to improve your coverage or lower your premium at renewal, that's a separate conversation and a separate decision.

Can my current agent block the BOR letter?

No. Your current agent has no legal authority to block, contest, or delay a Broker of Record letter in California. The carrier is obligated to process the change when they receive a valid, signed request from the named insured. Your outgoing agent may contact you to discuss the change or try to retain your business, but the final decision is entirely yours.

How long does it take to process?

Most carriers process BOR letters within 5–15 business days. Some carriers are faster (2–3 days), and a few may take up to 30 days during busy periods such as the first quarter of the year. Your new agent can usually expedite the process by submitting the letter directly to the right department and following up proactively.

Can I reverse a BOR letter?

Yes. If you change your mind after submitting a BOR letter, you can submit another BOR letter transferring the policy back to your original agent or to a different agent entirely. However, keep in mind that frequent BOR changes can sometimes raise questions with carriers, so it's best to make a well-considered decision upfront.

Do I need to notify my current agent before submitting?

You are not legally required to notify your outgoing agent. However, as a professional courtesy, many business owners choose to let their current agent know. The carrier will also notify the outgoing agent as part of their standard processing procedure, so they will find out regardless.

Can I submit a BOR letter for personal insurance policies?

Yes. BOR letters work for both commercial and personal lines insurance, including homeowners insurance, auto insurance, and umbrella policies. The process and template are essentially identical.

Need help with workers' compensation specifically? Check our guide on switching workers' comp carriers in California.

Why California Business Owners Are Sending Their BOR Letters to TSM Insurance

TSM Insurance is the independent insurance agency that Central Valley business owners are switching to — and the BOR letter is often how they make it happen. Here's why:

• Broad carrier appointments: We work with 20+ insurance companies, so we can service policies across a wide range of carriers. Chances are, we already have an appointment with your current carrier.

• Responsive, personal service: Our team responds to calls and emails the same business day — because your questions shouldn't have to wait until next week.

• Annual coverage reviews: We review every commercial client's coverage annually to ensure you're properly protected and competitively priced.

• Local expertise: From Modesto to Turlock to Ripon and throughout Stanislaus and San Joaquin counties, we understand the businesses and risks of the Central Valley.

• White-glove transition: We handle the BOR letter process end to end — from identifying the right carrier contact to confirming processing — so you don't have to manage any of it.

Have questions about your business insurance before switching? Browse our guide: Questions to Ask When Buying Business Insurance in California.

Ready to Submit Your Broker of Record Letter? Let TSM Insurance Help

If you're ready to switch to an agent who picks up the phone, shops your coverage every year, and actually understands your business — we're ready for you. The BOR letter is just the beginning of a better insurance experience.

Contact TSM Insurance today. We'll walk you through the BOR letter process, confirm your carrier's specific submission requirements, and handle the entire transition from start to finish — at no cost to you.

Your policy. Your choice. Better service starts with a single letter.