Hi Everyone. I have been reading through this forum since joining today and can only hope to have my questions finally answered after weeks of researching to no avail.
First, let me start off by telling you all about myself really fast...
I am not an insurance agent. However, my dad is. He's been in the business for several years and works for an independent agency as a "commercial lines producer". Recently, I raised the question of starting his own independent agency. His responses to WHY he is reluctant to starting his own independent agency are what led me to this forum seeking answers.
1. He believes that establishing contracts with carriers is very expensive and time consuming. I believe there MUST be an easy way to do this... Can some of you please provide some insight into this process. With exception to application fees, are there really some major costs involved with gaining carrier contracts or is my dad just simply wrong?
2. He also believes that if he applies with the carriers during the start-up process of his agency, some word will leak back to his current employer and all hell will break loose. Is there some protocols in place to prevent this from happening or should he end employment BEFORE applying for carrier contracts? What do you all recommend?
3. I am aware that he signed something with his current employer regarding non-competes with his book of business. If he honors that, but a client insists on following my dad to his new business... is there anything the employer can do or is he safe? My father is a very trustworthy person and would never maliciously harm his former employer by intentionally violating any contract he has with them. I just want to know what some of your thoughts on this are and how he should handle it.
I have a bunch more questions, but I think these three are good to start with. Thank you in advance to anyone willing to help answer these!
First, let me start off by telling you all about myself really fast...
I am not an insurance agent. However, my dad is. He's been in the business for several years and works for an independent agency as a "commercial lines producer". Recently, I raised the question of starting his own independent agency. His responses to WHY he is reluctant to starting his own independent agency are what led me to this forum seeking answers.
1. He believes that establishing contracts with carriers is very expensive and time consuming. I believe there MUST be an easy way to do this... Can some of you please provide some insight into this process. With exception to application fees, are there really some major costs involved with gaining carrier contracts or is my dad just simply wrong?
2. He also believes that if he applies with the carriers during the start-up process of his agency, some word will leak back to his current employer and all hell will break loose. Is there some protocols in place to prevent this from happening or should he end employment BEFORE applying for carrier contracts? What do you all recommend?
3. I am aware that he signed something with his current employer regarding non-competes with his book of business. If he honors that, but a client insists on following my dad to his new business... is there anything the employer can do or is he safe? My father is a very trustworthy person and would never maliciously harm his former employer by intentionally violating any contract he has with them. I just want to know what some of your thoughts on this are and how he should handle it.
I have a bunch more questions, but I think these three are good to start with. Thank you in advance to anyone willing to help answer these!