When an insurance client wants to appoint a new broker or authorize a broker to represent them, the insurance agency may need a Broker of Record (BOR) letter. The letter records the client's authorization and is submitted to the relevant insurance carrier according to its requirements.
For insurance brokers and agency teams, collecting a signed BOR letter can become a time-consuming administrative task. Sending PDFs by email, waiting for a response, following up with clients, checking returned documents, and filing the final copy can create unnecessary delays.
An electronic signature workflow can make this process easier to manage. With Undersign, an agency can send documents for electronic signature, track the request, and retain the completed document and its associated signing record.
This guide explains what a BOR letter is, when it is used, what to check before sending one, and how to manage the signing process from preparation through submission.
Important: BOR letter requirements vary by insurer, policy, jurisdiction, and transaction. Use the applicable carrier form or approved wording, confirm who is authorized to sign, and follow the carrier's instructions. An electronic signature request does not by itself complete or guarantee acceptance of a broker-of-record change.
What Is a Broker of Record (BOR) Letter?
A Broker of Record letter, often called a BOR letter, is a written authorization used in insurance to identify or appoint a broker or agency to represent an insured client for specified insurance matters.
The letter may be used when a business changes insurance brokers, appoints a new agency, or formally authorizes a broker to communicate with an insurance carrier on its behalf. The exact purpose and effect of the letter depend on the insurance arrangement and the carrier's rules.
A BOR letter is not simply an internal note. It is an authorization document that may need to be signed by the insured or an authorized corporate representative and submitted to the carrier for review or processing.
Insured Client
Authorizes new representation, policy access, and market negotiation.
Appointed Broker
Collects e-signature, audits loss runs, and submits to carrier desks.
Insurance Carrier
Validates corporate authority, triggers 10-day notice, updates records.
Who Typically Uses a BOR Letter?
BOR letters are commonly relevant to:
- Independent insurance brokers working with new or existing commercial accounts.
- Insurance agencies managing broker appointments, renewals, and client records.
- Commercial insurance teams supporting business clients with placements or coverage restructuring.
- Business owners and corporate officers (CEOs, CFOs, Risk Managers) who need to approve a broker appointment or change.
- Insurance operations teams responsible for collecting documents and submitting them to carrier underwriters.
Why BOR Letter Signing Can Become an Administrative Bottleneck
The document itself may be short, but managing manual signing involves multiple points of delay:
Manual Email & PDF Flow
Friction & Delay- 1 Account manager drafts PDF and emails attachment
- 2 Email sits unopened in busy CFO or owner inbox
- 3 Manual email follow-ups after days of silence
- 4 Client prints, signs by hand, and emails crooked scan
- 5 Carrier underwriting deadline risk or missed renewal
Digital E-Signature Workflow
Instant Execution- 1 Reusable carrier-approved template populated
- 2 Digital signing link sent directly to authorized officer
- 3 Officer signs securely from mobile device in minutes
- 4 Automatic audit certificate and timestamp generated
- 5 Immediate submission to carrier underwriters
What Information Should a BOR Letter Include?
Always begin with the carrier's required form or instructions. Depending on those requirements, a comprehensive BOR letter typically incorporates:
├── 1. Insured Details: Legal entity name, DBA, principal address, FEIN
├── 2. Appointed Broker: Agency legal name, licensed broker name, state license #
├── 3. Incumbent Broker: Name of current agency being superseded (where required)
├── 4. Policy Schedule: Carrier name, policy numbers, effective dates, lines of coverage
├── 5. Scope of Authority: Immediate negotiation vs. renewal authority, loss run access
└── 6. Signer Verification: Authorized officer name, title, signature, timestamp
- Insured or client details: Exact legal business name matching carrier policy files.
- Broker or agency details: Full agency credentials, address, and appointed broker identifier.
- Carrier and policy information: Specific policy numbers (e.g., General Liability, Property, Workers' Comp).
- Scope of authorization: Clear statement granting access to loss runs, underwriting files, and renewal negotiations.
- Effective date: Stipulation whether authority is immediate or effective upon renewal.
- Authorized corporate signer: Corporate officer (CEO, CFO, Owner) with documented signing authority.
How to Send a BOR Letter for Electronic Signature
An electronic signature platform helps insurance agencies send BOR letters, monitor status, and retain signed documentation through a reliable seven-step sequence:
Step 1: Confirm Carrier Requirements
Check whether the specific insurance carrier provides a mandatory proprietary BOR form, requires wet-ink signatures, or accepts electronic signatures. Verify whether loss run authorization requires separate wording.
Step 2: Prepare and Review the BOR Letter
Complete policy numbers, corporate entity names, and effective dates. For recurring placements, maintain standard templates in Undersign to streamline preparation while keeping client-specific details accurate.
Step 3: Add Authorized Signer and Fields
Verify that the recipient is a designated officer with legal authority to bind the insured entity. Position signature, full printed name, corporate title, and date fields accurately.
Step 4: Send the Electronic Signature Request
Dispatch the document via Undersign with a professional message explaining the purpose of the BOR letter, the carrier involved, and whom to contact with questions.
Step 5: Track the Request and Follow Up
Monitor real-time status from your agency dashboard. Identify requests awaiting client action and follow up proactively before market deadlines approach.
Step 6: Review the Completed Document
Download the executed PDF and inspect the signature, title, and timestamp. Ensure the cryptographic completion certificate is attached for complete evidential support.
Step 7: Submit the Letter and Confirm Carrier Acceptance
Deliver the executed BOR letter to the carrier underwriting department via the required submission portal or email. Track carrier acknowledgment and note the start of the incumbent broker's 10-day rescission period.
Agency Responsibilities Across the BOR Lifecycle
Agencies can make the BOR process repeatable by defining operational ownership at each milestone:
| Lifecycle Stage | Suggested Responsibility | Completion Check |
|---|---|---|
| Confirm Requirements | Account manager or broker | Carrier form, rescission window, and carrier instructions identified. |
| Prepare Document | Assigned agency account executive | Insured entity name, policy schedule, and coverage lines verified. |
| Verify Recipient | Broker or account manager | Officer authority, email address, and corporate role confirmed. |
| Send for Signature | Document sender (via Undersign) | E-signature link dispatched; audit token generated. |
| Monitor Progress | Agency operations team | Dashboard monitored; automated reminders triggered if pending. |
| Review Signed Document | Assigned agency staff | Signature completeness, corporate title, and date verified. |
| Submit to Carrier | Broker or authorized team member | Delivered to carrier underwriting desk via approved channel. |
| Confirm Processing | Account manager | 10-day rescission tracked; formal carrier acceptance logged. |
| Retain Records | Agency operations | Executed PDF and completion certificate filed in agency management system. |
Common Mistakes to Avoid When Sending BOR Letters
- Using generic templates blindly: Carriers frequently reject generic letters that fail to incorporate mandatory proprietary clauses. Always verify carrier rules.
- Sending to unauthorized staff: Sending the request to an office manager without corporate signing authority invalidates the letter upon carrier legal review.
- Missing policy schedule numbers: Omitting policy identifiers can cause carriers to delay processing while seeking clarification.
- Assuming signing equals transfer: A signed letter is only step one; carrier review, the 10-day incumbent notice period, and final carrier approval determine the actual effective date.
- Failing to archive audit trails: Neglecting to store the e-signature certificate can create complications if an incumbent agency contests the transfer.
How Undersign Helps Insurance Agencies
Undersign streamlines commercial insurance authorizations with an intuitive, compliant signing experience:
- Reusable Carrier Templates: Save approved BOR templates with pre-configured signature fields for instant client deployment.
- Mobile-First Client Experience: Corporate executives can review policy terms and sign authorizations on smartphones without account creation hurdles.
- Real-Time Pipeline Tracking: Monitor whether clients have opened, viewed, or signed authorizations in real time.
- Tamper-Evident Records: Secure signed PDFs with cryptographic timestamps and IP audit logs to satisfy carrier compliance reviews.
Frequently Asked Questions
What is a Broker of Record (BOR) letter?
A Broker of Record letter is an authorization document used in insurance to identify or appoint a broker or agency to represent an insured client for specified policies or coverage lines. Its purpose and effect depend on carrier rules and transaction terms.
Can a BOR letter be signed electronically?
In most commercial insurance markets, electronic signatures are widely accepted for BOR letters under ESIGN and UETA guidelines. However, acceptance depends on carrier guidelines, so agencies should verify carrier acceptance before dispatch.
Who should sign a BOR letter?
The document must be executed by an authorized representative of the insured entity, typically a corporate officer (CEO, CFO, President, or Risk Manager) or the individual named insured for personal policies.
Does a signed BOR letter automatically change the insurance broker?
No. The executed document must be submitted to the insurance carrier. Standard industry practice allows the incumbent broker a 10-day rescission period to attempt retention before the carrier formally transfers the account.
What should an agency check before sending a BOR letter?
Verify carrier form requirements, accurate legal entity names, all active policy schedule numbers, clear lines of coverage, effective dates, authorized corporate signers, and required loss run disclosure clauses.
What records should an agency retain after signing?
Retain the completed signed PDF, the electronic signature audit trail certificate with IP and timestamp records, submission verification receipts from the carrier, and the carrier's formal acceptance notice.
Simplify Your Insurance Document Signing Workflow
Collecting client signatures on Broker of Record letters does not need to depend on scattered email attachments and manual status checks. A consistent electronic signing process helps your agency prepare documents, send requests, monitor completion, and retain signed records in an organized way.