Thinking of Starting My Own Insurance Agency

[Michael M]

I have been in the group health business for about 13 years, working for 3 of the largest insurance carriers in California and one of the top consulting companies in the US.

I reside in California and signed a non-compete in my current job that I will be leaving to start my own agency. I have held my health/accident/life agent license for over 5 years now here in California. Does the non-compete stand in court here in California? have anyone worked with Warner Pacific? if yes, what do you think of them?

I have also passed my P&C license a week ago (1st time around) but I am having a hard time finding an E&O since I do not have much experience in the P&C field. Does anyone know of any E&O company that I can contact that might provide me with P&C E&O coverage?

I found a company called UnitedDefendCo.com/Errors-Omissions Has anyone heard of such a company??

Any assistance would be Greatly appreciated.

 

[YouGotMyMoney]

Does the non-compete stand in court here in California?

These are just a waste of ink and paper.

 

[Michael M]

These are just a waste of ink and paper.

Thank you guru that is great news, so CA is same as FL when it comes to non-compete

 

[Josh]

Thank you guru that is great news, so CA is same as FL when it comes to non-compete

Pretty much anywhere the non-competes aren't worth the paper they're printed on. Now, if you start trying to steal their existing clients then they would have a cause for action, but simply being in the business outside of their organization is nothing they will likely take action on and even if they do, it won't go far.

 

[mike-]

Michael M if I were you I would seek legal counsel. My fiance is an attorney in FL and a "non compete" sometimes is worth the paperit is printed on. You can check out some case law and find out that "non-compete" have been upheld. As long as it is "reasonable" then it could be upheld. You do have the Constitutional right to earn a living but you can not go to court and simply tell the Judge "Hey I did not steal any of their clients, therefore I am fine". If the non compete clause is unreasonable (i.e- you can not work in the insurance business for 4 years) then it will get dismissed but I would leave that interpretation to an attorney. If the company you currently work for has deep pockets and find you as a threat, I would not be surprised if they file a lawsuit just to try and bring you down (most people do not have the funds nor time to go through a trial).
Good luck with whatever your decision is but plan accordingly.

 

[the mayor]

These are just a waste of ink and paper.

Really?
Depending on the state and how it is written...you could be way off base here.
The original poster might want to talk to an attorney.

 

[YouGotMyMoney]

Thank you guru that is great news, so CA is same as FL when it comes to non-compete

Obviously I am not a lawyer.

But non-compete clauses are worthless, and are just there because the lawyers tell them to put em in there.

Only the gullible and inexperienced are afraid of a non-compete clause.

Really, you think they will take an agent to court? Only person who will come out ahead is the lawyers.

And if they did take me to court, and won a judgement....

Big deal, I'll get a family member licensed and start an agency under a corp.

Big whoop!

 

[mike-]

Obviously I am not a lawyer.

But non-compete clauses are worthless, and are just there because the lawyers tell them to put em in there.

Only the gullible and inexperienced are afraid of a non-compete clause.

Really, you think they will take an agent to court? Only person who will come out ahead is the lawyers.

And if they did take me to court, and won a judgement....

Big deal, I'll get a family member licensed and start an agency under a corp.

Big whoop!

YouGotMoney- now you would be circumventing the agreement. If there is a "non-circumvent" clause then you would lose again. Back to the original question- if a good/reasonable non compete clause is drafted then it would hold up in court, therefore it is "worth the paper it is printed on". I do agree that most just draft one up to scare people and do a poor job in drafting the agreement and will never pursue it on the average agent.

 

[YouGotMyMoney]

Mike-

I realize what you are saying, and I have probably signed at least 5 of these in the last 8 years, no one has come after me.

I think it's important for agents not to get scared about these non compete clauses.

 

[moonlightandmargaritas]

But non-compete clauses are worthless, and are just there because the lawyers tell them to put em in there.

Not totally.

While working for a large insurance company in management (in FL), I testified in two of these cases that actually went to trial.

What happened in both cases was that the judge didn't stop someone from working in the insurance business, but the producer was not allowed to solicit any previous policyholders until the expiration of the non-compete.