Newly Licensed - Non-Compete Agreement

Oct 4, 2015

  1. PaperHearts
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    PaperHearts New Member

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    Non-Compete Agreement

    Hello. I am brand spanking new to insurance. After deciding to get into a new career field and under the advice of a friend in the insurance industry I attained my insurance producer license in the state of North Carolina with lines of authority in property, casualty, life, and accident & health.

    I've had two interviews and one job offer. The job offer I was given is with an agent opening a brand new agency with no book of business. He has been very upfront with the fact that it will be "new customer" oriented and there will be high sales goals.

    The problem is this... There is a non-compete agreement I must sign up front with a 1 year 50 mile term. I completely financed my insurance license on my own to the tune of about $1,600.00 for class and fees. There is a very real possibility that I will not meet the sales goals set due to my inexperience and needing time to learn. I will be terminated after 90 days if I am not meeting those goals. That's in writing too.

    The non-compete will pretty much make it impossible for me to get another job in insurance in the city I live in. I have only been looking for a job in insurance for a week so far. The position offered is 100% commission based with no guarantees and my friend is telling me the commission structure is kind of a joke to begin with.

    Is a non-compete agreement not allowing me to work for any other insurance company for 1 year and within 50 miles common place and/or standard? The agent wants an answer to the job offer by Monday. All things considered should I take a chance on this agent or turn down the offer? I have another interview lined up Monday morning too.

    Thoughts please?
     
    Last edited: Oct 5, 2015
  2. SmartWorker
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    SmartWorker Expert

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    Generally these non-competes are meant to stop you from poaching the same customers and re-writing their insurance.

    More to the point, I think you've identified the problem with the opportunity. How will you be successful in this role? I would want to have an answer to that question before I signed anything.
     
  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    You need to ask more questions about their training and lead generation.

    If you're getting 50 quality leads per week (as an example) AND you are trained will enough to close a good portion of those... you might be sitting on a pile of cash ready to be mined.

    However, if you have to find your own leads and training is "here's your cards, here's your brochures, there's the door, good luck"... then I'd pass.

    So I'd ask more about how they find and attract new customers and new business. If it's all up to you... I'd probably pass.
     
    DHK, Oct 4, 2015
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  4. bps
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    bps Expert

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    I can certainly understand why an agency owner would insist on a non compete. Also to factor in is what carriers will you write? Access to a very competitive carrier can make or break you. Good luck.
     
    bps, Oct 5, 2015
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