Frustrated Georgia Agent
Moderators: Josh, independent guy
Frustrated Georgia Agent
I bought into an agency in the state of Georgia and we have a nice mix of Preffered and Standard companies. However, there are questionable practices that take place and I have discovered the partner is not going to change and it is going to eventually threaten the company relationships we have. I have spoken with him about opening an office in a town about 30 miles away and seperating the business, so my question is how do I present what I am considering doing to my marketing reps.
Re: Frustrated Georgia Agent
Hey William,
Has this partner earned any type of professional designation? If so, he will be bound by a code of ethics. Bring this to his attention. Shady and immoral business practices by a few make it harder for all of us. If he won't change his spots, buy him out and get rid of him, even if he is the senior guy in the firm. The cash flow should provide enough to make payments. Make sure you have a non-compete in place when he goes, he should not stay in the industry. Just my two cents... it's too easy to do this job right, but there are always those that figure out a way to cheat anyway. UGH!
Wayne Lunday
Has this partner earned any type of professional designation? If so, he will be bound by a code of ethics. Bring this to his attention. Shady and immoral business practices by a few make it harder for all of us. If he won't change his spots, buy him out and get rid of him, even if he is the senior guy in the firm. The cash flow should provide enough to make payments. Make sure you have a non-compete in place when he goes, he should not stay in the industry. Just my two cents... it's too easy to do this job right, but there are always those that figure out a way to cheat anyway. UGH!
Wayne Lunday
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mccluney
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Re: Frustrated Georgia Agent
I had a similiar experience. What your suggesting is hard to prove and the aggravation to you will not be worth the trouble. Let alone the law suits that may ensue if you make your comments known. And, you might lose in court. Your best recourse is to separate yourself either by bying out your partner or going out on your own with the best terms you can make. All you have to say to the marketing reps is that you preferred to go in a different direction.
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waltmarkers
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Re: Frustrated Georgia Agent
Separating out the office might be easier that you think. After you have your partner on board to split off your office into a new agency, the carrier reps will likely be fine with it.
As long as their current book of business with you is of a decent size and profitable, they won't care who the check goes to. This was my experience anyway. There are a few things that might block your appointment:
1. Your partner is their primary point of contact and he blackballs you.
2. Local mutuals: these carriers tend to dislike anything new.
3. You're trying to get a appointment with the Liberty Mutual commercial regional (they are still digesting their new agents from all the acquired business like Safeco)
4. Your current book of business has a high loss ratio.
Note - I haven't commented on your partners ethics. I would probably recommend that you don't either. Insurance is a small world based mainly on personal relationships. If he has good ones, badmouthing him will only cause you trouble. If someone asks why the business split, say something like, to better serve our clients with a office more local to them, or "strategic business differences."
Mark Walters, CPCU
CS Insurance Strategies
http://insuresavvy.blogspot.com
As long as their current book of business with you is of a decent size and profitable, they won't care who the check goes to. This was my experience anyway. There are a few things that might block your appointment:
1. Your partner is their primary point of contact and he blackballs you.
2. Local mutuals: these carriers tend to dislike anything new.
3. You're trying to get a appointment with the Liberty Mutual commercial regional (they are still digesting their new agents from all the acquired business like Safeco)
4. Your current book of business has a high loss ratio.
Note - I haven't commented on your partners ethics. I would probably recommend that you don't either. Insurance is a small world based mainly on personal relationships. If he has good ones, badmouthing him will only cause you trouble. If someone asks why the business split, say something like, to better serve our clients with a office more local to them, or "strategic business differences."
Mark Walters, CPCU
CS Insurance Strategies
http://insuresavvy.blogspot.com
Re: Frustrated Georgia Agent
Just tell the reps that you are considering a break. No reason to tell them why. If they ask, just tell them you want to be your own man.
Re: Frustrated Georgia Agent
Dear Frustrated Georgia Agent,
Having been involved in this exact same scenario years before I suggest you figure a way to exit the partnership. In any business and especially this one your integrity is the only differentiating variable to the competition. If you lose that and associate yourself with sketchy individuals if will catch up with you sooner or later. I would be glad to talk in person about agencies in Ga. on a partnership basis. I am a serial entrepreneur and am looking for partners in Ga.
Having been involved in this exact same scenario years before I suggest you figure a way to exit the partnership. In any business and especially this one your integrity is the only differentiating variable to the competition. If you lose that and associate yourself with sketchy individuals if will catch up with you sooner or later. I would be glad to talk in person about agencies in Ga. on a partnership basis. I am a serial entrepreneur and am looking for partners in Ga.