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What is an Agent of Record and Why Does It Matter for Your Business?
Written by: BIS Benefits
Demystifying the Agent of Record - Your Key to Better Service
In the world of insurance—whether you’re dealing with employee benefits or commercial risk services—understanding how the Agent of Record (AOR) process works can make managing your insurance much simpler. In this post, we’ll break down what an Agent of Record is, how it works, and why it might be beneficial for your business—without needing to change your insurance carrier.
What is an Agent of Record?
An Agent of Record (AOR), sometimes referred to as a Broker of Record (BOR), is the broker or agent responsible for managing your insurance policies. When you sign an AOR letter, you authorize a new broker to handle your existing policies without needing to change your insurance company. This means you can continue working with your current carrier, but you’ll have a new broker providing the service and advice your business needs.
For example, if you’re a Georgia business owner with health insurance through Anthem or Aetna but feel that your current broker isn’t meeting your expectations, you can sign an AOR letter and switch to a broker like BIS Benefits. The policy remains the same, but you benefit from a new broker who aligns with your goals—no disruptions to coverage, no new carrier.
For more information, download the free agent of record guide.
Change Your Insurance Carrier or Change Your Agent of Record?
Many business owners mistakenly believe that switching brokers requires changing insurance carriers. However, the AOR process provides a solution if you’re happy with your current policies but want better service or a more proactive broker.
Here are a few reasons why you might want to consider signing an Agent of Record letter:
- Better Service: You might feel your current broker is not responsive enough to your questions or slow in handling claims. Signing an AOR allows you to switch to a broker like BIS Benefits that prioritizes your needs without changing your policy.
- No Service Contracts: At BIS Benefits, we don’t tie our clients into long-term contracts. If we’re not meeting your expectations, you have the freedom to switch brokers again—no sssstrings attached.
- No Disruptions to Coverage: Your insurance stays the same. Your employees will keep their ID cards, doctors, and coverage, making the switch seamless from their perspective.
- Expert Advice: Your broker should act as a consultant, not just someone who shops for the lowest rates. At BIS Benefits, we go beyond insurance by handling logistical challenges like open enrollment and COBRA Administration, ensuring compliance and smooth transitions.
To get more detailed information about how brokers can tailor insurance policies to your needs, check out our article on What Does an Insurance Broker Do.
Download Our Free Agent of Record Guide Here:
Agent of Record for Benefits vs. Commercial Insurance
There are slight differences between how the AOR process works for employee benefits and commercial insurance:
- Benefits Side: For employee benefits, brokers manage open enrollments, handle claims, and ensure ID cards are issued promptly. A smooth transition is essential to avoid disruptions for your employees. Learn more about streamlining open enrollment with our Benefits Enrollment Software.
- Commercial Insurance: For commercial policies like property or liability insurance, switching brokers without changing carriers ensures your business is covered when significant claims happen. For example, if your business suffers a fire, having a broker with deep industry knowledge can make all the difference. Learn more about the importance of having the right broker for Business Insurance for Construction.
The Importance of Trust in Your Broker
Whether on the benefits or commercial side, trust between you and your broker is vital. At BIS Benefits, we ensure transparency in our relationships with clients. You get the freedom to choose who manages your insurance while knowing that you have a team committed to providing the best service.
If you’re considering switching brokers, it’s as simple as signing an AOR letter. No changes to your insurance carrier, no extra costs—just better service.
You Don't Have To Settle For Poor Service.
If you’re looking to improve your benefits administration or commercial insurance coverage without changing policies, consider working with BIS Benefits. We specialize in helping Georgia businesses navigate insurance with ease. Contact us today to learn how we can support your business.
