Old Clients Coming After Me

[NotEnough]

Hi All!

So I was a LP for local Horace Mann office for about 3.5 years. I recently left about a month ago and went fully independent. I understand there is a non solicit agreement in force for a year after I left so I haven't re wrote any clients. Actually I don't want to because I felt as an employee there, my job was to bring in clients there and not take it when I leave.

I have had a few clients coming after me after knowing I left. I don't mind writing them but I would like to keep some signed forms that says something like they understand they pursued me to replace their business and not the other way around.

Does anyone have a form like this I could use? Or have any tips/examples to better protect me should my last company come starts investigating?

 

[adjusterjack]

You write a few former clients and the company isn't going to investigate it'll just serve you with a lawsuit seeking lots of money in damages. That you wrote the clients is prima facie evidence that you solicited the clients and you'll be hard pressed to prove that you didn't solicit them and put them up to signing a document saying otherwise. The clients will be served subpoenas. If they don't show up that's nails in your coffin. If they do show up the insurance company's lawyer will have them stepping all over their tongues.

Even if you win, you'll have spent many thousands of dollars on a defense attorney and your time will be spent agonizing over the lawsuit instead of cultivating new clients.

I speak from experience.

I suggest that you tell your former clients that you are legally obliged not to write them for the year and that they should be patient. Then write them when the year is up.

That's the safest route to take.

 

[NotEnough]

You write a few former clients and the company isn't going to investigate it'll just serve you with a lawsuit seeking lots of money in damages. That you wrote the clients is prima facie evidence that you solicited the clients and you'll be hard pressed to prove that you didn't solicit them and put them up to signing a document saying otherwise. The clients will be served subpoenas. If they don't show up that's nails in your coffin. If they do show up the insurance company's lawyer will have them stepping all over their tongues.

Even if you win, you'll have spent many thousands of dollars on a defense attorney and your time will be spent agonizing over the lawsuit instead of cultivating new clients.

I speak from experience.

I suggest that you tell your former clients that you are legally obliged not to write them for the year and that they should be patient. Then write them when the year is up.

That's the safest route to take.

Thank you for the response. I will take your advice. From your experience, did they really do all that for a few clients?

I really dont want to write any former clients. I would feel horrible because the office I worked for was very small and close knit. We developed a good relationship as well but it sucks to turn away business I didn't actively prospect lol

 

[BeeSelective]

Why can’t you sell former clients additional insurance?

Why does the existing insurance need to be replaced?

 

[paulallred]

Go to another Agent you trust, have them write the business, pay you after you give that Agent a small commission for doing so. Then after your one year period, submit a "Change of Broker Letter" signed by the clients.

 

[LGilmore]

"Will they do that?" You need to step back and realize it isn't just about you. Companies will enforce the contract just to let existing agents know they mean business. It isn't just about you, it's about all those other agents in house that might be thinking of doing what you did.

Follow the advice of others here who have experienced this. Who has the bigger pockets?

 

[adjusterjack]

From your experience, did they really do all that for a few clients?

Yes.

If I remember correctly, it took 3 instances and the lawsuit was served on me. Took me about $3000 ($10000 in today's dollars) worth of attorney fees to get me out from under.

The unfortunate part is that I probably made less than $1000 off the three clients.

The cost to defend yourself in a lawsuit is astronomically more than you'll ever make off just "a few clients."

Never mind the gimmicks that have been suggested. Just say no.

 

[somarco]

Go to another Agent you trust, have them write the business, pay you after you give that Agent a small commission for doing so. Then after your one year period, submit a "Change of Broker Letter" signed by the clients.

Uh, no . . . . . . .

 

[rousemark]

Go to another Agent you trust, have them write the business, pay you after you give that Agent a small commission for doing so. Then after your one year period, submit a "Change of Broker Letter" signed by the clients.

You are really going to let your clients know that you are that devious? Think that will build trust and respect with them as clients?

 

[pfg1]

I always wonder why people automatically want to re-write their clients just because they moved to a different company. Was the policy not good when it was sold the first time?