What is an Agent of Record (AOR)?
An Agent of Record (AOR) is a person or company authorized to act on your behalf with insurance carriers, benefits providers, or government agencies. They handle paperwork, renewals, and compliance, but they don't become your employer or co-employer.
AORs are most common in benefits administration and insurance, not contractor management. If you're hiring contractors, you probably don't need an AOR.
What an AOR does
An AOR acts as your authorized representative. Common responsibilities include:
- Benefits administration: Enrolling employees in health insurance, managing renewals, handling claims issues
- Insurance brokerage: Negotiating rates, comparing plans, managing policy changes
- Compliance paperwork: Filing required forms with carriers and agencies
- Vendor coordination: Acting as the point of contact between you and insurance/benefits providers
- Renewals and changes: Managing annual renewals, adding/removing employees, updating coverage
The key word is "agent"—they represent you, but they don't take on employment liability or become your employer.
AOR vs EOR vs PEO
| Factor | AOR | EOR | PEO |
|---|---|---|---|
| Role | Authorized representative | Legal employer | Co-employer |
| Employment liability | None | Full liability | Shared liability |
| Payroll | No | Yes | Yes |
| Benefits admin | Yes | Yes | Yes |
| Typical use | Benefits/insurance management | International hiring | Domestic HR outsourcing |
| Cost | $50-$200/month or 2-5% of premiums | $299-$685/month per employee | $100-$200/month per employee |
When you might need an AOR
You might need an AOR if:
- You have employees and need help managing health insurance, 401(k), or other benefits
- You want an insurance broker to negotiate rates and handle renewals
- You're spending too much time on benefits paperwork and vendor coordination
- You need someone to handle compliance filings with carriers and agencies
You don't need an AOR if:
- You're only hiring independent contractors (they handle their own benefits)
- You don't offer employee benefits
- You're using a PEO or EOR (they typically include benefits administration)
- Your team is small and benefits are simple
AOR and contractors
If you're managing independent contractors, you typically don't need an AOR. Contractors are self-employed and handle their own health insurance, retirement, and benefits.
What you do need for contractors:
- Contractor agreements (scope, payment terms, IP ownership)
- Payment tracking (invoices, confirmations, audit trail)
- Tax documentation (W-9 for US contractors, W-8BEN for international)
- Project and milestone management
This is what Kontrable helps with: organizing contractor relationships, tracking payments, and keeping records—without becoming a middleman or charging per-contractor fees.
Common questions
Can an AOR help with contractor compliance?
Not typically. AORs focus on benefits and insurance, not contractor classification or payment compliance. For contractor compliance, you need proper agreements, documentation, and payment tracking.
Is an AOR included in a PEO?
Often yes. Many PEOs include AOR services as part of their benefits administration. They act as the AOR for your employee benefits while also co-employing your staff.
How do I designate an AOR?
You sign an AOR authorization form that gives the agent permission to act on your behalf with specific carriers or agencies. This is typically handled by your insurance broker or benefits administrator.
Can I change my AOR?
Yes. You can revoke AOR authorization and designate a new agent at any time. This is common when switching insurance brokers or benefits administrators.
Next steps
If you're managing contractors, you don't need an AOR—you need simple contractor management tools. Kontrable helps you organize contracts, track payments, and keep records for $99/month for up to 25 contractors.
No per-contractor fees. No middleman. Just clean contractor management.