Book of Business when You Leave an Independent Agency

sam816

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I know that for the captives it takes years to EARN a book of business.

what happens if you go work for an independent? someone I spoke to mentioned that if I ever decide to go out on my own then I will have the option to buy the book, does that mean you buy the agency's portion of renewal income then take those clients with you? if so typically for how many years of renewal?

if you don't buy the book, is it ethical to market to the clients you developed for an independent while working there?

TIA.
 
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I know that for the captives it takes years to EARN a book of business.

what happens if you go work for an independent? someone I spoke to mentioned that if I ever decide to go out on my own then I will have the option to buy the book, does that mean you buy the agency's portion of renewal income then take those clients with you? if so typically for how many years of renewal?

if you don't buy the book, is it ethical to market to the clients you developed for an independent while working there?

TIA.

Hmm, let's see.

Say for example while you worked for me I paid you a salary, gave you complete back office support, gave you access to my carriers, in other words, I paid you to bring in those clients.

Now after a few years we decided to part ways.

So what do you think? Is it ok or not okay to come after my clients that I paid you to bring in?
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Another reason i always say. Keep your own files or keep scanned copies. Have an exit strategy.

And also an Attorney on retainer (except for those in CA of course).

With the economy nowadays, Agency owners are wiser and wiser of Producers stealing clients.
 
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And also an Attorney on retainer (except for those in CA of course).

With the economy nowadays, Agency owners are wiser and wiser of Producers stealing clients.


I am not saying do anything against the law or unethical. However, I have been on the wrong end of the split. Some (not all) agency owners are real Asses.
Probably a good thing I am Independent.:1wink:
 
It doesn't matter what you the agent feel or what the agency owner feels. If you had a contractual relationship the contract will state what you can or can not do...If the agency did not cover this in their contract thats their problem.
 
In re-reading your question, I think your asking if it's possible to buy an existing book of business when you start your own agency? If that's the question, the answer is yes. Actually captives are sometimes given existing books to start their agencies. Something to consider, buying a book not only entitles you to the commission, it entitles you to all the customer service for that book as well. Make sure your agency can handle the extra load before you purchase.
 
Hmm, let's see.

Say for example while you worked for me I paid you a salary, gave you complete back office support, gave you access to my carriers, in other words, I paid you to bring in those clients.

Now after a few years we decided to part ways.

So what do you think? Is it ok or not okay to come after my clients that I paid you to bring in? .

Excellent point, but if the agency paid this producer as an independent contractor and do not have as contract, the producer will more than likely be able legally take the book and the agency probably would not have a leg to stand on.
 

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