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“Still Crazy After All These Years: Lateral Moves and Non-Compete Agreements,” American Agent & Broker

August 2012

“Lateral moves among insurance agencies can be as hurtful and damaging as any breakup,” writes Jonathan S. Ziss, a partner in Goldberg Segalla’s Professional Liability Practice Group. “Having the right agreements in place help make severed employment relationships as amicable and drama-free as possible for all parties involved.”

In this article, Jonathan examines how insurance agencies may use non-competition agreements (NCAs), non-disclosure agreements (NDAs), and non-solicitation agreements (NSAs) to help protect their books of business and stanch the bleeding when a key producer departs for another firm. The article explores how some courts have ruled regarding the enforceability of contracts or certain provisions, and it outlines a number of proactive steps employers may take to help minimize the impact of a departure and prevent costly disputes.