Video: How to Drop an Insurance Carrier

How to Drop an Insurance Carrier

Dropping an insurance carrier requires you to first communicate with your broker. Drop an insurance carrier with help from a longtime insurance broker in this free video clip.

Video Transcript

My name is Susan Combs, and I'm an insurance broker for Combs and Company. Today, we're going to talk about how to drop an insurance carrier and this is actually a lot easier than it sounds. The best thing to do is communicate with your broker first because you know sometimes some carriers will ask you if you are replacing them with another carrier so they will want information on that. The main thing is you do want to talk to your broker because if this is in terms of say property and casualty insurance and say you know, it's a general liability thing and you are wanting to drop the carrier because you are replacing it with somebody else or say you've gone out of business and you no longer need it, you still want to do the proper steps to cancel the policy just because this can effect your credit if you just let it cancel for nonpayment. The other thing is too if like if we're talking about worker's comp, worker's comp is something that is state mandated in pretty much every state except for Texas so you need to always have a record and have if you're going to cancel a policy of worker's comp then you need to have another one that's ready in the wings to go so that you have no gap in coverage. You know, most carriers, you want to take a look at what their ramifications are when you cancel, because some will keep their serving fees upfront so that you know if you are looking, if you paid $1,000 for this policy and you cancelled it six months out and you think you are going to get $500 back, chances are you are not because they are going to keep their servicing fees. So just talk to your broker and communicate to them what's going on, why you need to cancel and they will help you out the best way they can.

How to Drop an Insurance Carrier

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