How to Professionally Handle—and Fire—a Client Who’s Gone Too Far

In the insurance business, we wear a lot of hats: educator, advisor, problem-solver, therapist, and sometimes even peacemaker. We do our best to accommodate, empathize, and de-escalate. But occasionally, a client pushes too hard, crosses professional lines, and becomes more of a liability than an asset.

Every agent has that story—the client who cussed out their CSR over a late payment notice, the one who tried to commit soft fraud, or the serial drama magnet who calls every week with a new crisis... and always blames you. So, what do you do when a client becomes too much?

It’s not just about holding your ground. It’s about protecting your team, your business, your license, and your peace of mind.

Here’s how to handle the situation professionally—and how to fire a client the right way when the time comes.

Step 1: Recognize When a Line Has Been Crossed

A bad day is one thing. But repeated abusive, dishonest, or disruptive behavior is something else entirely. Watch for red flags like:

Verbal abuse or threats

Harassment or inappropriate comments

Unrealistic demands, despite clear explanations

Dishonesty during underwriting or claims

Disrespecting your staff or your time

If a client leaves you (or your team) feeling anxious, frustrated, or drained more often than not, that’s your signal. You’re not obligated to keep anyone in your book who doesn’t respect your boundaries.

 Step 2: Set Expectations and Boundaries

Before firing a client, try one final boundary-setting conversation. Sometimes, people don’t realize they’re being inappropriate until it’s pointed out. Try something like:

“I want to continue helping you, but I need to set a clear expectation. I’m committed to providing excellent service, and I ask that we maintain a respectful, professional tone in our interactions moving forward.”

This doesn’t have to be confrontational. Just firm and clear.

If they respond positively, great. If not, at least you gave them a shot to self-correct.

Step 3: Document, Document, Document

Before making any move to fire a client, make sure you’re documenting:

Any verbal abuse, dishonesty, or major red flags

Emails, texts, or voicemails that reflect problematic behavior

Notes from phone calls (with dates/times)

Any previous boundary-setting conversations

This protects you from E&O issues, potential complaints, and serves as a paper trail if the client tries to make trouble later.

Step 4: Know When It’s Time to End the Relationship

Once a line has clearly been crossed—and you’ve given them a chance to improve—you have every right to walk away. Clients are not entitled to your time, energy, or representation just because they pay a premium.

Ask yourself:

Is this client damaging morale or draining my team?

Have I spent more time managing them than growing my business?

Is there a potential risk to my license, reputation, or sanity?

If the answer is yes, it’s time to part ways.

Step 5: Fire the Client Professionally

When it’s time to make the break, do it professionally and in writing. Here's a sample email or letter you can use:

Subject: Termination of Agent-Client Relationship

Dear [Client Name],
After careful consideration, I’ve decided that our agency will no longer be the best fit to service your insurance needs. Effective [date], we will no longer act as your servicing agent.
I recommend you contact [Carrier Name] at [Carrier Phone Number] to either work directly with them or select a new agent that better aligns with your needs.
Thank you for the opportunity to have worked with you. I wish you the best going forward.
Sincerely,
[Your Name]
[Your Agency Name]

A Few Key Points:

Keep it neutral—don’t air your grievances.

Make the decision final—don’t leave the door open.

Provide direction so the client knows how to move forward.

Step 6: Follow Carrier Protocol to Remove Yourself

Firing the client on your end doesn’t mean they’re off your book. You need to notify the carrier (or your GA/IMO) to have yourself removed as the agent of record or servicing agent.

Here’s what to do:

Email the carrier or log into their agent portal.

Provide the client’s full name, policy number, and request to have your agency removed from the file.

Ask that the client be reassigned to the house account or a new agent of their choosing.

Sample Email to the Carrier:

Subject: Request to Remove Agent of Record – [Client Name / Policy #]

Dear [Carrier Name/Rep],
Please remove our agency as the servicing agent on the following policy:

• Client Name: [Full Name]

• Policy Number: [#####]

• Effective Date: [Date]

We’ve notified the client that we will no longer represent them, and they’ve been instructed to contact you directly for continued service.
Please confirm receipt and that this update will be processed.
Thank you,
[Your Name]
[Your Agency Name]
[Writing Code or Agent ID]

Every carrier is different. Some allow an AOR removal without naming a new agent. Others may hold the policy in a house account until the client chooses a new rep. If you're appointed through an IMO or GA, loop them in.

Step 7: Alert Your Team and Update Your Systems

Let your staff know the client is no longer being serviced. Remove them from your CRM or mark them “inactive” or “terminated.” You don’t want a team member unknowingly helping someone you’ve already let go.

Provide a simple internal script like:

“Please note that [Client Name] is no longer with our agency. If they call, direct them to the carrier’s service center at [phone number].”

 Important: Don’t Ghost or Abandon Clients

Even if they’ve been awful, do not ghost a client. That’s a fast track to an E&O complaint or regulatory problem. Always:

Give written notice,

Offer a clear path forward,

Notify the carrier properly.

Final Thought: Protect Your Peace and Your Business

You got into this business to help people—but not at the cost of your sanity. A toxic client costs you far more than they’ll ever pay in premium. When someone repeatedly crosses the line, respect yourself enough to say, “We’re done.”

Set boundaries. Handle it professionally. And know this: saying goodbye to the wrong client makes space for the right ones.