Insurance Journal Forums

If I own my book of business and i go to work for a agency, will the agency compensate you for the value of the book of business if they want to own it. Will they give you the value in agency equity, phantom stock or will the ageny buy it out in cash. or does the agency just take control of the book of business and not compensate you.

Thank you for your input.

Note: Im am in college doing research on careers. I am not a producer, i have learned almost everything about a producer job. I just couldn't find any websites that comments on how a producer is compensated for a book of business.

There are theoritical answers, but the reality is that every one and every deal will be different, based on the number of factors involved and what is of importance to each party involved.

If the Producer owns the book of business prior to going to work for the insurance agency the Producer should negotiate the ownership of the book of business prior to renewing it through the insurance agency. It is unlikely that the insurance agency will compensate him for ownership unless this is defined up front. With that said, every scenario you suggest is possible if handled up front.