diff --git a/src/Admin/AdminConsole/Controllers/OrganizationsController.cs b/src/Admin/AdminConsole/Controllers/OrganizationsController.cs
index 70c09a539..4dc7ec56d 100644
--- a/src/Admin/AdminConsole/Controllers/OrganizationsController.cs
+++ b/src/Admin/AdminConsole/Controllers/OrganizationsController.cs
@@ -7,6 +7,7 @@ using Bit.Core;
 using Bit.Core.AdminConsole.Entities;
 using Bit.Core.AdminConsole.Providers.Interfaces;
 using Bit.Core.AdminConsole.Repositories;
+using Bit.Core.AdminConsole.Services;
 using Bit.Core.Billing.Extensions;
 using Bit.Core.Billing.Services;
 using Bit.Core.Context;
@@ -56,6 +57,7 @@ public class OrganizationsController : Controller
     private readonly IRemoveOrganizationFromProviderCommand _removeOrganizationFromProviderCommand;
     private readonly IFeatureService _featureService;
     private readonly IProviderBillingService _providerBillingService;
+    private readonly IPolicyService _policyService;
 
     public OrganizationsController(
         IOrganizationService organizationService,
@@ -82,7 +84,8 @@ public class OrganizationsController : Controller
         IProviderOrganizationRepository providerOrganizationRepository,
         IRemoveOrganizationFromProviderCommand removeOrganizationFromProviderCommand,
         IFeatureService featureService,
-        IProviderBillingService providerBillingService)
+        IProviderBillingService providerBillingService,
+        IPolicyService policyService)
     {
         _organizationService = organizationService;
         _organizationRepository = organizationRepository;
@@ -109,6 +112,7 @@ public class OrganizationsController : Controller
         _removeOrganizationFromProviderCommand = removeOrganizationFromProviderCommand;
         _featureService = featureService;
         _providerBillingService = providerBillingService;
+        _policyService = policyService;
     }
 
     [RequirePermission(Permission.Org_List_View)]
@@ -436,6 +440,13 @@ public class OrganizationsController : Controller
             organization.MaxAutoscaleSmServiceAccounts = model.MaxAutoscaleSmServiceAccounts;
         }
 
+        var plan = StaticStore.GetPlan(organization.PlanType);
+
+        if (!organization.UsePolicies || !plan.HasPolicies)
+        {
+            await DisableOrganizationPoliciesAsync(organization.Id);
+        }
+
         if (_accessControlService.UserHasPermission(Permission.Org_Licensing_Edit))
         {
             organization.LicenseKey = model.LicenseKey;
@@ -452,4 +463,18 @@ public class OrganizationsController : Controller
 
         return organization;
     }
+
+    private async Task DisableOrganizationPoliciesAsync(Guid organizationId)
+    {
+        var policies = await _policyRepository.GetManyByOrganizationIdAsync(organizationId);
+
+        if (policies.Count != 0)
+        {
+            await Task.WhenAll(policies.Select(async policy =>
+            {
+                policy.Enabled = false;
+                await _policyService.SaveAsync(policy, _userService, _organizationService, null);
+            }));
+        }
+    }
 }