5 Things you need to know about changing your insurance broker

Switching your Broker of Record (BOR) isn't just a choice but a strategy. Changing your BOR calls for consideration and critical decision-making. We will go through some of the implications of such change.
There are several reasons you might think about switching your broker:

• You're looking for improved service
• You want more comprehensive coverage options
• You need a fresh approach to managing your building's risks‍

The right broker for you:

The first step is identifying a broker who aligns with your building's specific needs. Look for a brokerage that offers:

• Services tailored to your requirements
• Expertise in your type of property
• Insurance solutions that match your risk profile

A valuable resource in your search can be your property management company. They often have extensive experience working with various brokers and can provide insights into their competencies and service quality.‍

Timing your switch:

‍While there's no strict rule about when you can change your broker, certain times are more advantageous than others:

Ideal timing: Early in your policy renewal phase. This minimizes disruption and helps avoid potential cancellation fees.

Mid-term changes: These are possible but may require more coordination and could involve agreement stipulations that vary by insurer.‍

Important considerations 

Changing your broker involves several key steps and limitations:

1. Documentation: You'll need to provide a written notice or Broker of Record letter outlining the change to all involved parties.
   
   
2. Access limitations: Your new broker can't access information, negotiate terms, or alter current policies until they're officially appointed. They can shop policies with carriers your current broker hasn’t contacted yet.
   
   
3. Carrier involvement: Once notified, your current insurers must work with your new agent. However, they're not obligated to change existing contract terms mid-policy.
   
   
4. Inspections and audits: Your new broker will need to gain an understanding of your building, which might involve inspecting properties and understanding risk management practices.
   
   
5. Policy adjustments: Changing your BOR doesn’t instantly grant your new broker the ability to negotiate your existing insurance coverage mid-term. Current policies generally will not undergo adjustments until the renewal period.

How can Daisy help?

We've worked with numerous brokers and understand their strengths and practices. We can:

• Recommend brokers well-suited to your building's needs
• Guide you through the transition process step-by-step
• Handle the administrative work, leaving you to focus on the final decision
• Help you conduct a thorough risk assessment before making the switch

Our goal is to ensure this transition enhances your coverage without exposing your building to unnecessary scrutiny.

Conclusion

Transitioning to a new insurance broker can be a strategic move to improve your building's risk management. By understanding the process, timing, and potential limitations, you can make an informed decision. With careful planning and the right partner, you can navigate this change successfully and secure optimal insurance solutions for your building's needs.