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Broker of record changes can leave new firms with hidden gaps

In the period right after a BOR transition, documentation and certificate issues tied to the transferred account are often most difficult to fix, yet the new broker is still responsible when claims arise.

Reported · Written up by our desk · Industry & Deals

Risk & Insurance highlights that a broker of record, or BOR, transition is not only a business-development milestone for a brokerage, but also a risk transfer event. Coverage history, documentation, certificates issued on the client’s behalf, renewal decisions, and how those items were recorded all move to the incoming firm, often without clear visibility into what condition the account files are in.

The outlet notes that gaps that surface after the handoff are not always due to poor practice by the outgoing broker. They can reflect standards the new broker did not previously set, such as coverage decisions made informally and never documented, certificates issued under holder requirements that the new firm has not reviewed, and renewal notes that exist only in prior account manager emails.

Risk & Insurance adds that when a claim arises or a certificate is questioned, the incoming brokerage is responsible for what is in the file, including what is missing. The article also says clients who have just moved their business are typically focused on the relationship, and requesting they revisit documentation or fill gaps from prior years can feel like added friction rather than promised service.

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