P&C Agreements...What do YOU think?

[Advisor06]

I just started working at a P&C "independent" shop and I am really not sure what I got myself into....

There is no salary but just a $2k per month for only the first year. The commission is 50% 1st year and 40% renewals. They recently asked me to sign a non-compete agreement that is over 5 years long...I am not sure about P&C but I remember other industries being 1 or 2 years not over 5. There has been talk about a sale of the agency down the road and this makes me a little worried for the future.

Any suggestions?

 

[VolAgent]

Non-compete or non-solicit/non-piracy? There is a difference.

That said, 5 years is almost certainly long enough to make it invalid, even if it was valid to begin with. Of course, the mere threat of a lawsuit may be enough to shut you down.

Personally, I would be fine with a 2 year non-solicit or non-piracy. I would not sign a non-compete. While invalid in many states, it still could be used to hurt you in the future.

Otherwise, seems reasonable. They are giving you some money now so you don't starve and the commissions can be reasonable depending upon the level of support you receive.

 

[adjusterjack]

Duplicate thread.

See:

https://insurance-forums.com/community/threads/what-are-your-thoughts.91697/