Leaving Current Employer/no Non-compete

[mygoal2012]

I am trying to open my own agency. The biggest question I hope someone can help me with is this. I did NOT sign a do not compete agreement. The type of insurance that my employer sells only one other company in our area can sell. The reason I am leaving my employer is because of the way he treats his clients. He is also going out of business and selling his book in July, but does not know that I know this. The reason I know for sure is that I saw his confirmation fax that he sent to our home office that included the whole single page of his resignation. He is selling his book to his son-in-law. My question is, if I did not sign a do not compete can I get in trouble if I approach his clients to write business with me? I have been told already by the policyholders for about the last 5 years that even thou our rates are not the cheapest, they stay because I offer great customer service. One of the reasons that I stayed so long was I feel connected/protective to the policyholders. Most of them have very hard working family type businesses. My current employer won't even talk to them unless their premium is really big and if it is big.....he finds "ways" to make it even bigger. I like to think of it as a hit-and-run. He hits them hard and runs away leaving me to sit face to face with them telling them their insurance went up. When I ask him why, his reply is " it is what it is".

 

[somarco]

You may not have a non-compete as part of your employment agreement but that does not mean the carrier won't come after you.

 

[Guest]

That hurts my eyes to read!

 

[mygoal2012]

Thanks Somarco. He is an independent agent and owns his own book. Any business I write or bring in is under his agent number and I do not get any commissions. Do you think the big company would still try and come after me?

 

[Bertolinoins]

How did you get the business that "you write". Are we talking about business you chased or business that came to you because of his marketing effortd? There is a huge difference.

 

[mygoal2012]

I consider anyone who walks into his office, anyone that was referred to him, or calls his office wanting a quote his. If I go out and meet new people on my own and talk to them about a quote or if they are referred to me from either someone I was able to write for or from a friend, I consider it mine.

 

[somarco]

This seems a bit confusing. Maybe it is me. On one hand it seems you are wanting to roll business from your current employer. On the other it appears you are saying picking up business is merely chance.

 

[Josh]

If he's selling the book to his son-in-law and you start stealing clients from the book, the son-in-law may have a difference of opinion about who's book it is.

If you were getting paid hourly/salary, that's your compensation and as a matter of ethics, those aren't your clients. Programmers working for a company and going home and doing stuff on their "own time" still end up having to give away rights to the software because in all fairness, the employer was paying them. Are you a programmer? No, but whether you like the situation or not, if the guy was paying you a salary then those aren't your clients. Might anyone have any legal recourse? Maybe, maybe not, but what about your ethics/integrity?

If you want to leave, then leave, but start from scratch.

 

[AgencyEquity]

I truly beleive you need to consult with attoreny on this. A good attorney who understands non-completes (not that you have one, but understand the law is important) can tell you exactly what you can do and what you can't do based on your state laws. Invest $250 or whatever it will cost to sit down for an hour with an attorney as getting legal advise from a forum like this is not a good idea. Lastly search around for the right attorney and if the right attorney cost $100 more, it will be worth it.

 

[Golfnut2112]

Like the above post states get an attorney. I went thru this whole non-compete thing back when I went independent in 1991 with a large mutual company. For the most part my attorney said they are a joke. What I did was tell my people you are going out on your own and to keep the policy they have, but call you if they need anything in the future.