Moving from one insurance affiliate to another?

[indpagent2]

Hey guys I was hoping for a little insight/advice/direction regarding my situation.

I am an insurance agent working as an independent contractor for an agency. This agency (B) is an affiliate of a much larger independent agency (A) in CA. My contract is with agency B.

It has come to my attention that it may be best to leave my current agency and join a new agency which will also be an affiliate of agency A.

I'm concerned about the non-compete agreement in my contract as I cannot afford to start all over. I keep hearing that non competes are not upheld in California if you are not an actual employee. I have no intention of going after business that I did not write, but I would like to retain the book I've worked so hard to build.

Any info you guys might be able to share on the topic would be great. I hope to have a lawyer look over my contract soon. Thank you.

[Big Dog]

FWIW, non-compete agreement in California usually don't hold a lot of water.

Since your current and potentially future agency are all affiliates of a larger agency, there shouldn't be an issue in making a switch. However it should be the responsibility of the new potential agency to get this answer first.

Additionally, you may want to have legal counsel look at that non-compete agreement to get their opinion. As I noted originally, non-compete agreements in California usually don't stand up in court. However, there are agency principals that can be real a-holes in trying to enforce it, and make your life miserable.

[d's insurance store]

This is one of those moments in time where an attorney will prove to be a real asset. Take your employment/contractor paperwork in and pay the few hundred dollars to get a firm legal opinion about what you can and cannot do within the state law.

As stated above, in California, non competes are tough to enforce as the state feels that you're entitled to make a living, unless you've specifically signed one for monetary consideration. However, non solicitation clauses are enforceable in California.

If this is a major career move for you, don't be cheap. Get the advice and pay for an expert. Five years from now you'll never miss the consultation fee.

[yoyowordup]

. . . but I would like to retain the book I've worked so hard to build.. . .

Do you own that book you've worked so hard to build? If not, it's not yours. The agency has also worked very hard to build their business and give you the best opportunity to make a living. Doesn't your contract spell out exactly what is to take place upon your departure? Do you have the right to buy the book (or unowned portion thereof)?

[indpagent2]

I will definitely be consulting with a lawyer soon. Thank you for the replies.

The contract states that all policies belong to agency B. I can purchase the right to solicit my clients if I originally wrote their policies. I have my own client/contact list that I've developed since I started in the business. I'm not downloading anything from the agency itself.

It also states I may not solicit clients of agency B. This is the area where I am most concerned. The relationships are between me and the clients. I don't see how the agency could restrict my interaction or solicitation of clients that I sought out and made connections with.

[d's insurance store]

I will definitely be consulting with a lawyer soon. Thank you for the replies.
It also states I may not solicit clients of agency B. This is the area where I am most concerned. The relationships are between me and the clients. I don't see how the agency could restrict my interaction or solicitation of clients that I sought out and made connections with.

Sometimes the law just isn't fair. And that's why the advice from an attorney before you start in on your plans is suggested. I know from personal experience that California allows for enforcement of a non solicit clause, at least for some period of time after leaving a company.