In the more than 2 years since I began to write articles for American Agent & Broker, I have covered a wide range of subjects significant to the successful operation of a professional insurance agency. All of these articles have dealt with the external relationship between the agency and its clients and the insurers that the agency has agreed to represent. Have you spent as much time planning your internal relationships as you have with your external dealings? My definition of internal interactions is how you deal as an agency principal with producers and other key employees of the agency. I am talking about failing to procure the proper protection for the agency's major assets: customers and trade secrets.

The good old days

In the olden days, agencies hiring producers—especially inexperienced producers—was an uncomplicated process. The standard method of providing guidance to the new producer was to provide a telephone book and suggest they start calling prospects. These days, it is far too expensive and too difficult to get new producers off the ground without providing substantial support. One of the most common methods of supporting producers is to give them access to agency clients they can cross-sell or upsell.

Related: Read the article "How Safe Are Non-compete Agreements?" by Scott Robertson.

Let's fast forward several years. Your new producer is now a veteran and a big asset to your agency team. Not only does the producer's success enhance your reputation as a recruiter, but the realization that you now have a star on your hands means you need to do something about recognizing your current business relationship with the producer. It is apparent that the original producer agreement signed when our superstar producer was new is not relevant in today's terms.