Insurance Broker issue
Discussion
I have used the same insurance guy for about 25 years and he is brilliant. He knows the ins and outs of my business and I rely on him for insurance advice. We have been friends and colleagues throughout this period often meeting for meals and drinks.
I've always placed my business through him and with whichever broker he is employed by. This has happened about three times in that period.
Yesterday I had a telephone call followed by a letter this morning, saying that my guy is leaving the broker and is on gardening leave and that they have invested in purchasing his 'client goodwill'.
Now I'm sure that he will have signed a non-compete clause in his contract of employment.
The thing is though that the broker cannot prevent me from choosing to move my business again to wherever he moves to can he? He's not trying to steal the business as I can place it wherever I wish.
Should I respond to their letter saying that I'll do what I want with my business in the future or just ignore the contents of their letter?
I've always placed my business through him and with whichever broker he is employed by. This has happened about three times in that period.
Yesterday I had a telephone call followed by a letter this morning, saying that my guy is leaving the broker and is on gardening leave and that they have invested in purchasing his 'client goodwill'.
Now I'm sure that he will have signed a non-compete clause in his contract of employment.
The thing is though that the broker cannot prevent me from choosing to move my business again to wherever he moves to can he? He's not trying to steal the business as I can place it wherever I wish.
Should I respond to their letter saying that I'll do what I want with my business in the future or just ignore the contents of their letter?
When is you policy due for renewal?
If it's outside the covenant period then any losses will be minimal.
As the client I wouldn't respond at all - just do what you see fit. You can use any insurance broker you like - if there is a contractual dispute between his current and his old employer then that isn't really anything to do with you.
I have been involved in LOADS of such matters - and at the end of the day if an educated client wants to leave and is prepared to testify that they weren't poached then there isn't a lot that can be done - unless he has "poached" you and he gets caught.
If it's outside the covenant period then any losses will be minimal.
As the client I wouldn't respond at all - just do what you see fit. You can use any insurance broker you like - if there is a contractual dispute between his current and his old employer then that isn't really anything to do with you.
I have been involved in LOADS of such matters - and at the end of the day if an educated client wants to leave and is prepared to testify that they weren't poached then there isn't a lot that can be done - unless he has "poached" you and he gets caught.
With modern automotive insurance, I really would not worry, just go elsewhere at renewal, you are not beholden to the broker. I knew one who retired, and carried on advising the new company for at least a year - so totally amicable in that case.
With household insurance many years ago, I cut the broker out as they twice demonstrated extreme incompetence and went direct. Saved a small amount of money and very easy. I got the impression I was not the only one to do it.
With household insurance many years ago, I cut the broker out as they twice demonstrated extreme incompetence and went direct. Saved a small amount of money and very easy. I got the impression I was not the only one to do it.
When I was underwriting commercial insurance I remember a fair few policyholders moving to different brokers when the contact moved employers.
It is part of what makes certain people attractive and a fair amount of head hunting goes on as decent brokers have a bank of customers that will follow them whoever they work for.
As has been said above, come renewal you can place the business with whoever you wish.
It is part of what makes certain people attractive and a fair amount of head hunting goes on as decent brokers have a bank of customers that will follow them whoever they work for.
As has been said above, come renewal you can place the business with whoever you wish.
Davel said:
No not retiring and this is a portfolio of policies so an estimated £25k of fees per annum.
Renewal is end of March
End of March could well fall within any no deal/no solicit clause. He could have a non-compete clause but that isn't the norm within Insurance broking.Renewal is end of March
You can use whatever broker you want and any fallout will between the two employers and the employee.
I know where he is going to.
I would not like him to loose his commission.
One of my sites was affected by a major fire next door some years ago causing over £200,000 worth of damage to our buildings etc.
He was absolutely brilliant in helping me throughout the process and was contactable pretty much 24/7. Not many folk would have done that.
I would not like him to loose his commission.
One of my sites was affected by a major fire next door some years ago causing over £200,000 worth of damage to our buildings etc.
He was absolutely brilliant in helping me throughout the process and was contactable pretty much 24/7. Not many folk would have done that.
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