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... our own strengths and weaknesses far better than we consciously admit. We're proud of what we do well, but we're always a little unsure of whether our success is accidental or due to the fruits of our labor. But we hide our weaknesses very well. Because it disturbs us that we have a "soft underbelly" we diminish it in our minds. Yet there it lies, exposed and unprotected. Is it the fact that our service isn't as "stellar" as we boast? Does it take too long for our CSRs to return calls? Have you heard some grumbling from your clients that, when you're not around, no one from your office seems to know them? Have your salespeople RIP'd (Retired In Place)? Do you make excuses for them? Do they make ... agency; (2 ) tangible added value for the commission ceded to the agent; and (3 ) the feeling that the agent was working on their behalf every year to get needed coverage at a reasonable price from a carrier who would treat them fairly in case of a loss. Strangely, these were the same issues that the agents themselves said were important when they were customers for cars, property, or any other important purchase. The agents who recognized non-producing salespeople as their soft underbelly have re-trained or replaced their producer force with people who have the "fire in the belly" that most agents once had before they reached their level of satisfaction. And the agents who recognized that their skills lie in selling rather than managing personnel, systems, and procedures "found" professional managers who ...

... Yet there it lies, exposed and unprotected. Is it the fact that our service ...

...rized possessions uninsured and unprotected.   You also have the optio...

... enforce this federal law vigorously, staff, employees, other agencies and/or their principals could face severe penalties for misappropriating trade secrets they knew were covered by a non-compete. Conclusion Not only are non-competes enforceable if reasonable and supported by timely and legally sufficient consideration' in many instances, they might be essential in preserving the value of your agency. Some buyers won't even consider buying an agency that's unprotected. If your agency isn't well protected already, it's not too late. Act NOW! (1 ) For a comprehensive discussion of an agency being judicially devalued by two-thirds due to its failure to have in place adequate non-competes with its three key producers who left to form another agency and were sued by their former employer, see Ed Nowogroski Ins., Inc. v. Rucker, 137 ... of a series that covers buy/sell arrangements for agency valuation and tax issues, shareholder internal buy/sell agreements, related estate planning, employment contracts, and non-competes. It's part of a unique pre-publication book that gives you practical street-level understanding of one of the most significant financial events in the life of your agency. CHAPTER 4: COVENANTS NOT TO COMPETE IN THE SALE OF AN AGENCY Intellectual property protection is critical in the sale of an agency. For an agency, this property is the agency's book of business. No buyer is going to buy an agency whose owner and employees are free to take all of the agency's confidential information, leave immediately, and use the money the buyer just paid them to set up shop across the street and compete. As discussed in the previous chapter ...

...r buying an agency that’s unprotected. If your agency isn’t well ...

... ABILITY TO EARN AN INCOME - GO UNPROTECTED. 07/01/97   COCHRANE & PO...