Indy Agency Offer - What Do You Think?

[MichaelQ]

Hi everyone, I'm currently a producer for a State Farm agent in Florida (Fort Myers/Cape Coral area) doing P&C and life for the last 7 years. I decided to become an independent agent and not a captive with SF because of the restrictions they place on you and besides the book of business is not yours. I spoke to 2 Indy agents that I have known for a while and was made the following offer: Agent 1: Work for his agency & earn 75% of commissions and 25% on renewals, the clients that I bring in are mine and if I still want to open my own agency after 2 years I can take "my book of business" with me and apply with the carriers, meanwhile I have full access to his carriers. He is willing to have this all in writing thru an attorney. Agent 2: He wants me to open another location, (under his name) for 1 year, were I keep 75% of commissions and 50% of renewals, everyone that I write would be my book of business and stay with me. After 1 year he said I can apply with any carriers and possibly get them because I already have a running agency. He also is willing to put it in writing thru an attorney. With both agents once I separate myself I no longer have to give them any % of commissions, both mentioned they know how much I can produce, and know I will make them money. My concern is, legal issues and would the carriers give me a shot because I would not be applying empty handed with them. I think this can be a great opportunity, so if you were in my shoes... What would you do? I forgot to mention, I have a 2-20 and a 215 life-health & variable annuity license. I also have 2 other producers willing to join me once I get my agency up and running. Please Give me your input, I have to make a decision in the next 30 days. Thanks.

 

[FL P&C Broker]

Who pays the cost of opening the new office? Who does the service work? Does each agent have the right appointments for the area you are looking to write? So many other things to consider.

 

[MichaelQ]

Sorry for the delay, I would be responsible for all aspects of my office, from licensing, permits, cost, service etc. They are just letting me use their carriers as an independent person working for them. I would work under their E&O, once I move out from their agency I need to have it all by myself, E7O, liability, at that time I would apply to the same carriers I have been using all along, hopefully I have established a relationship with the carrier reps, so it may make it easier to get appointed with an active book of business. I'm trying to price the office cost of furniture and equipment. I have already looked into a "corporate" office space, it looks professional and very affordable. Any ideas or suggestions would help.
Thanks
Michael.