What is the role of a Broker of Record in commercial insurance?

The role of a Broker of Record in commercial insurance is to represent the insured in negotiating insurance terms. This position entails acting as an intermediary between the client (the insured) and the insurance company. The broker is responsible for understanding the client's specific needs and risks, and then advocating on their behalf to secure the most favorable terms and pricing for their insurance coverage.

The broker of record has established authority to handle the client's insurance matters, ensuring that the client's interests are prioritized during negotiations. This includes assessing different policy options, coverage limits, and conditions to find a suitable insurance plan for the business. A strong representation often leads to better terms and conditions compared to what the insured might secure on their own.

Regarding the other options, while selling policies directly to clients and managing claims are functional roles in the insurance world, they do not pertain to the unique responsibilities of the Broker of Record. Evaluating and adjusting premiums annually typically falls under the duties of the insurance company and its actuaries, rather than the broker.