How do I change my workers’ compensation insurer?

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Switching to another workers’ compensation insurer is pretty simple. Here’s how the general process goes:

1. First, check your current workers’ comp contract.

You’re always free to cancel your workers’ comp insurance policy.


Before you cancel, though, you should check your contract. Some insurers might charge you a fee for early cancellation. Often, the fee changes depending on when you cancel—if you’re close to the end of your contract, for example, the fee is normally pretty small.


To find out for sure, give your current insurer a call and ask them if they will penalize you for leaving the contract early. If they won’t, great. If they do charge a fee, ask them exactly what the dollar amount will be. And get the name of the person you speak to, just to cover your bases. (If you’re considering switching to us, we can make this call for you.)


By the way, don’t be put off by a change fee. In many cases, you’ll make up for it with the money you’re saving by switching.

2. Buy your new policy first.

Don’t wait until you cancel your old workers’ compensation policy. Although some insurers will backdate new policies to cover lapses in coverage, it’s generally better to buy the new policy before cancelling the old one to be sure you’re covered. (You really don’t want to be caught without workers’ compensation insurance.)


Here’s some more information on how to purchase a new workers’ comp policy.

Great. You’re almost there.

3. Finally, cancel your old policy.

Give your prior insurer a call and give them official notice of cancellation. Then, you’ll need to sign something called a Lost Policy Release. It’s often called an LPR for short. (This is another process we can take care of for you, if you like.)

Finally, to be really sure that you won’t have a lapse in coverage, double check with your old insurer that your cancellation date will be the same as the start date of your current policy. In other words, if your new policy starts on 10/15/2018, make sure your old policy will be effective through 10/14/2018.

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Disclaimer

All content on this page is for general informational purposes only and does not apply to any specific case, is not legal, tax or insurance advice and should not be relied upon. If you have any questions about the situation for your small business or the latest information in your state, you should contact an attorney for legal advice, an insurance agent or broker, and/or your state's labor or industry agency, board, commission or department. Please note that the information provided on this page may change at any time as a result of legislative action, court decisions or rules adopted or amended by any state or the federal government.