This is a national companion to Summit's BC-specific switching guide. It covers common buyer questions when changing commercial brokers in Canada. It is common market practice and buyer guidance, not a set of Canada-wide legal requirements. Policy wording and provincial rules govern the specifics.

When an opaque renewal is the real reason to switch

Many switching conversations start with a renewal invoice the client cannot explain. Before you switch brokers, separate an insurer-fit problem from a broker-fit problem. If you need the renewal mechanics in plain English, see How Summit explains a commercial insurance renewal in Canada. If you also need a clear explanation of broker pay, see How Summit gets paid. CISRO's Principles of Conduct for Insurance Intermediaries expect intermediaries to provide objective, appropriate, relevant, timely and accurate information and explanations in a way that is clear and understandable so customers can make informed decisions and be treated fairly.

Insurer-fit issue: the insurer's rate, appetite, or coverage position changed. A broker switch by itself does not fix that.
Broker-fit issue: the broker cannot or will not clearly show the exposures behind the renewal, the markets approached, the wording changes, and how the broker is compensated. That is the case where switching brokers is the right response.

Broker of Record (BOR) letters

A Broker of Record letter is a short, signed instruction from the policyholder telling insurers that a new brokerage will service the existing policies going forward. In common Canadian market practice:

The BOR is typically on the client's letterhead, addressed to the insurer(s), naming the new brokerage and effective date.
It does not, by itself, change coverage, cancel a policy, or move insurers — it moves servicing rights.
Insurers usually honour a BOR after a short notice window (often around 5 business days in common practice; the exact period is insurer/market practice, not a statutory rule).
The outgoing broker retains any earned commission on the current term unless negotiated otherwise.

Mid-term vs renewal timing

Both are possible; the trade-offs differ.

At renewal: cleanest option. The new broker can re-market, restructure limits, and align endorsements without disturbing an in-force policy. Common practice is to start 60–90 days ahead of expiry for standard commercial risks.
Mid-term BOR (no cancellation): servicing moves but the policy stays as-is until renewal. Good when the incumbent policy is fine but service is not.
Mid-term rewrite (cancel and rewrite): only sometimes advisable — short-rate cancellation penalties, loss of premium credits, and gaps in coverage continuity can outweigh the benefit. Discuss before signing.

Open claims during a broker switch

An open claim does not block a BOR, but it does need care:

The claim stays with the insurer; the file does not "move" to the new broker's markets.
The new broker should receive a full handover: claim number, adjuster contact, reserves, correspondence, and any outstanding subjectivities.
Summit's claims advocate continues to communicate with the carrier, gather documentation, and push for fair resolution on any claims the client brings across.
At renewal, open claims and reserves influence pricing and market appetite; expect them to be part of the underwriting conversation.

Claims-made vs occurrence, and when tail coverage matters

Two common trigger types on Canadian commercial policies:

Occurrence (typical for CGL): responds to incidents that happen during the policy period, even if reported later. Switching insurers usually does not create a reporting gap for past incidents.
Claims-made (typical for professional liability / E&O, D&O, cyber, some pollution): responds only to claims first made and reported during the policy period, subject to a retroactive date.

When a claims-made policy is replaced or a business winds down, common practice is to consider:

Retroactive date continuity: the new policy should ideally maintain the prior retro date so past work stays covered.
Extended Reporting Period (ERP) / "tail": buys extra time to report claims arising from acts before the policy ended. Availability, length (often 1–6 years, sometimes longer), and cost vary by insurer and class. This is common market practice, not a universal entitlement.
Tail is most relevant when a claims-made policy is being cancelled without equivalent replacement (e.g., leaving a profession, selling the business, a carrier non-renewing without a follow-form replacement).

When to switch

Switching brokers is usually the right response to a broker-fit problem rather than an insurer-fit problem. Common triggers:

The renewal invoice arrived without a written explanation of exposures, wording changes, markets approached, or rate drivers.
Compensation (commission, contingent/profit-share, fees) has not been disclosed in writing.
Service is unclear — no named day-to-day contact, no escalation path, or slow response on documents and certificates.
Open claims are not being actively coordinated with the insurer.
The broker cannot walk you through exclusions, sub-limits, and endorsements in plain language.

If the underlying issue is really the insurer's rate or appetite, a broker switch alone will not fix it — see the opening section of this page.

What information to prepare

Before you engage a new broker, gather:

A list of all in-force policies, insurers, policy numbers, and expiry dates.
Copies of current policy wordings, declarations pages, and any recent endorsements.
Loss runs for the current and prior terms, plus details of any open claims (claim number, adjuster, reserves).
Current exposure figures (revenue, payroll, property values, vehicles, headcount, locations).
Any contractual insurance requirements from customers, landlords, or lenders.
Retroactive dates on any claims-made policies (E&O, D&O, cyber, some pollution).

What Summit can help with during a switch

Preparing the BOR letter and coordinating with the incumbent insurer(s).
Documenting current coverage, endorsements, and open claims before the effective date.
Assigning a claims advocate to any open files that move across.
Running a structured renewal review ahead of expiry, including markets approached and wording review.
Providing written compensation disclosure — see How Summit gets paid.

For what a new-business quote looks like end-to-end, see Commercial insurance quote process in Canada. For how Summit is paid on placements that move over, see How Summit gets paid.

A short buyer checklist

Write down, in your own words, the specific questions your current broker did not answer in writing at renewal.
Decide whether the issue is with the insurer's terms or with the broker's disclosure and service — the fix is different.
Confirm BOR effective date and which policies it covers.
Get a full list of in-force policies, expiry dates, and any open claims from the incumbent.
Confirm retroactive dates on all claims-made policies before any change.
Decide mid-term BOR vs waiting for renewal based on service issues, not price alone.
Ask the new broker how they will handle open claims and renewal marketing.

How Summit handles a switch

Summit is a Canadian commercial brokerage licensed across Canada. On a broker switch, Summit:

Prepares the BOR and coordinates with the incumbent insurer(s).
Documents current coverage, endorsements, and open claims before the effective date.
Assigns a dedicated claims advocate to any open files.
Runs a structured renewal review ahead of expiry.

Compensation on placements moved to Summit is described on the public Disclosures page.

Service area: Canada (subject to licensing and market availability).

Switching commercial brokers in Canada: BOR letters, open claims, and tail coverage