Filed Under:Agent Broker, Sales & Marketing

How Safe are Non-Compete Agreements?

Non-competition clauses in contracts between producers and agencies have long been a source of controversy and differing interpretations. Many in California say they don't hold up, while some agency owners want them signed to at least create the perception on the agent's part that they cannot take their business with them if they leave the agency.

Such agreements have many names: covenants not to compete, anti-piracy clauses, infringement of trade secret clauses. However, all have the same objective: to prevent agents from taking their accounts with them when they leave an insurance agency. Many agents have been the targets of legal action because of these clauses. To avoid problems in the future, agents and their agency employers should make it clear at the time of hire about what will happen if their business relationship doesn't work out.

Featured Video

Most Recent Videos

Video Library ››

Top Story

Baby, it’s cold outside! Here are 6 tips for staying safe in sub-zero temperatures

Extreme temperatures bring risks to people and property. Make sure you are taking care of yourself and your surroundings.

Top Story

5 ways insurance agencies can improve their websites

The way people use the Internet has changed over the past few years. Has your website changed with it?

More Resources

Comments

eNewsletter Sign Up

Agent & Broker Insider eNewsletter

Proven success tips and essential information to help agents and brokers grow their practice – FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.