| As an Executive Search Consultant specializing in the | | | | Your Response: I haven't made up my mind but it will |
| recruitment of senior level executives, Producers and | | | | be soon. Once I get to my new firm I'll make sure you |
| Producer teams for the retail brokerage community, I | | | | get a copy of the press release. You do have my cell |
| have had the opportunity over the past several years | | | | phone number don't you? |
| to assist dozens of individual Producers and several | | | | Out of this conversation you will get a sense of what |
| Producer teams to make the transition to a new | | | | category this client should be placed. Their either going |
| brokerage house. I realize this can be intimidating if this | | | | to say "Where ever you go, I go" (Category #1 in the |
| is the first time you have made such a move. This | | | | bag), or "Let meknow where you land", no |
| short guide is designed to help you navigate through | | | | commitment (Category #2 I think so, or 50/50) and |
| the process so that when come out on the other side | | | | finally, "Come see me at renewal and let's see how |
| with your new firm, you have all the information | | | | things pan out" (Category #3 You will have to |
| necessary to service your client's needs without | | | | compete for the business again at renewal time). |
| violating or breaching any non-competes or | | | | Again, if your clients have been with you for any length |
| employment agreements. | | | | of time and you have a good relationship with them |
| Remember, bottom line is that your employer's | | | | they will understand the situation. Reassure them that |
| property is your employer's property. Electronic form, | | | | you will be in contact with them in the near future, but |
| paper form, and human form, take any form and you'll | | | | also thank them for their business and support over |
| find yourself in trouble, or at least having difficulty | | | | the years. It never hurts to reaffirm your gratitude for |
| defending yourself should your old employer decide to | | | | their business. |
| take legal action against you. Your new employer | | | | Place all your clients into one of the three categories. |
| should indemnify you against any litigation as part of | | | | This will be important especially when we get to the |
| your employment contract. When negotiating your deal, | | | | first day with the new firm. On the first day with the |
| this should be part of your employment agreement. | | | | new firm you will want to send out a press release to |
| However, if you have taken any form of your former | | | | all your clients. Do you know their email fax and mailing |
| employer's property it can in many cases void the | | | | address? If you have a company phone/PDA you |
| indemnification section of your employment contract. If | | | | may want to consider getting your own personal one |
| you follow the suggestions and steps outlined in this | | | | and start inputting this information into your unit. You'll |
| guild you should minimize any litigation that may arise | | | | need address information to send the clients a copy of |
| as a result of you jumping ship. This is not to say that | | | | the press release announcing your move to the new |
| there won't be a law suit, anyone can sue anyone. | | | | firm. Don't forget, only load information into your |
| This guide is meant as a "how to" manual and should | | | | personal PDA that would be available in the public |
| not be a replacement for legal advice. Please consult | | | | domain or call the client to get the information. Do not |
| an attorney for any legal questions regarding your | | | | get any of the information for your personal PDA from |
| situation. | | | | your client files. Ideally, if you get a personal email |
| SECTION ONE | | | | address from the client all the better, you now have a |
| Client Information | | | | personal relationship with the client. |
| The good news is that this is the easiest area to deal | | | | On the day you give notice one of two things will |
| with when it comes to making a move. The bad news | | | | happen. You will be asked to coordinate the smooth |
| is that this is the area most often violated by Brokers | | | | transition of the client files to your new firm (This |
| when making a move and there is absolutely no | | | | happens when the sun comes up in the west) or most |
| reason for this to happen. Without failure, every time I | | | | likely you'll be shown the door and asked to leave |
| talk with a Broker for the first time I warn them about | | | | immediately and told your personal items will be sent to |
| the dangers of emailing client information to their | | | | you. If you have worked from home and have |
| personal email or their spouses personal email account. | | | | transferred files to home at any point in time, this is an |
| Without failure at least once a year I have a broker | | | | excellent time to raise the question as part of your |
| get in hot water because they thought they could | | | | resignation letter as to how your former employer |
| sneak one email in and not get caught. Most | | | | wouldlike for you to handle these files. This puts them |
| companies' IT department's today have implemented | | | | on notice that you have proprietary company |
| off boarding processes whereby when an employee | | | | information that you would like to return and you would |
| leaves a company they review all outgoing email | | | | like for them to give youa response as to how this |
| records for the past 30 to 60 days to determine if any | | | | should be accomplished. A lot of times the company |
| proprietary information was transferred from the | | | | will tell you to just delete the information. Bottom line it |
| company. Any files that are determined to be | | | | makes it difficult for them to come back after you and |
| "proprietary" are "red flagged". Don't email files to | | | | say that you took proprietary information, if up front |
| spouses, friends or other emails accounts. This is what | | | | you tell them you have company files on your |
| will get you in trouble! Don't think that if you erase it | | | | computer at home and how do they want to handle |
| from your computer it's gone, a good forensic IT | | | | the return of the information. |
| department can recover such files with no problems | | | | On the last day with your old firm you will call all your |
| what so ever. If it was sent over the internet, it can't | | | | client's and tell them "Today is my last day at X firm. I |
| be erased. You can erase it from the computer that it | | | | start Monday morning with my new firm" This is a |
| was sent from and the one that received it. But if it | | | | common courtesy to a valued client. Hopefully the |
| went through a server, and chances are certain it did | | | | client calls you Monday morning and you can go over |
| there will be a recoverable record to be used against | | | | and get the BOR on the account and continue life as |
| you in a court of law. | | | | usual with that client. If the client asks "I want to go |
| The only party you should be emailing client information | | | | with you", your reply should be "I can't ask for your |
| to is the client or the carrier...and there lies the answers | | | | business while employed with X. You have my cell |
| to your problem of having all your client information | | | | phone number. If you call me Monday I'll be free to |
| available to you when you set up shop with your new | | | | discuss it then. Do not solicit their business or discuss |
| employer. Make sure your clients have a copy of your | | | | moving their business while still working for your old |
| work product. It belongs to them and they can share it | | | | employer. |
| with anyone they want! Make an electronic copy of | | | | On the first day at your new firm, your new employer |
| the file and all the loss runs and email them to the | | | | will want to send out a press release announcing that |
| client. In many large shops you are required, in the | | | | you have moved to a new firm. This press release |
| name of transparency, to send the client this | | | | should issued to all the existing clientele of the firm in |
| information. By doing so you're just following company | | | | addition to your clients via email plus carriers, key |
| rules and guidelines. You can also advise client's that | | | | contacts, etc. Within two days of that press release |
| they should have this as part of their business | | | | going out, if you haven't heard from all your category |
| recovery emergency plan. Once you get to your new | | | | #1 clients call them to see if they got the notice (It |
| employer and you BOR'ed the account (we'll discuss | | | | gives you a reason to call). At that time set an |
| this in the next section) you'll need to call the client and | | | | appointment to meet with them at the earliest possible |
| ask them if they can forward that information that you | | | | date to get the BOR. Category #2 will now take |
| sent them. This is one way of getting your file | | | | between a week and 60 days to move this business |
| information to the client. If your book of business | | | | over. These clients will need to be called, wined and |
| consists of hundreds of small accounts ($2,500 to | | | | dinned. But in the end a good portion should come over |
| $7,500 in size) it may not be practical to electronically | | | | if the relationship is strong. Category #3 will come |
| copy all those files and send it to the clients. In this | | | | down to you being the good Broker you were in the |
| case, after you have BOR'ed the account contact the | | | | first place to win the business the first time around. |
| carrier for all the information you would have had in the | | | | If you won the business purely on price you will have |
| file. As you can see there is no need for you to take | | | | to be competitive. If you won it based on service then |
| any files what so ever from your current employer. If | | | | develop a new marketing strategy based on the |
| you provide quality customer service, every piece of | | | | strengths of yournew firm. If you have serviced the |
| documentation you will need will be on the other side | | | | business effectively and have done your job, you |
| when you start with your new employer. Don't take | | | | should have a competitive advantage over the other |
| files, don't take records, and don't even take a pencil! | | | | Brokers you're competing with. |
| Why open your self to the unnecessary liability? It's | | | | In summary, if you're going to make a move it should |
| just not worth it! | | | | be for all the right reasons, and should produce the |
| SECTION TWO | | | | best possible outcomes for you both mentally and |
| Clients | | | | financially. The best way to ensure that you're move |
| Let's face it the insurance brokerage business is a | | | | results in a maximum financial return with minimal liability |
| relationship based business! If your client's have been | | | | is to have a solid plan to execute against. So let's |
| with you for any length of time they have told you | | | | review, prior to termination client files and work product |
| "Where ever you go, I go" or "tell me what flag you're | | | | must be transferred to the client or the carrier, it |
| operating under and I'll follow you". The truth is your | | | | belongs to them. After you have sent it, call them to |
| clients do business with you because they trust you | | | | confirm they received the information. If after you get |
| and have faith in your abilities tomanage their risks. | | | | to your new firm and you didn't forward the files to the |
| Clients are seldom with a broker solely due to the | | | | client, get it from the carrier. Don't copy or email files, |
| name of the firm. Unless you have recently acquired | | | | remember your employer's property is your employers |
| an account that was solely based on price your clients | | | | property. Don't even take a pencil! At 30 days out |
| will value you and likely follow. | | | | start having conversations with your key accounts to |
| This section is going to be formatted into a 30 day | | | | get a feel for what category they will fall into. In the |
| time continuum. It's going to be based on a premise | | | | bag, I think so / 50/50, or you'll have to compete for |
| that you will begin having conversations with your | | | | the business all over again. On the day you resign, |
| clients 30 days prior toyou're leaving your current firm. | | | | prepare a resignation letter that includes verbiage that |
| The goal is to have all your accounts broken down into | | | | puts the company on notice that you have files on |
| three distinct categories. These categories consist of 1. | | | | your personal computer at home and request |
| In the bag! 2. I think so, or 50/50and 3. You'll have to | | | | instructions on how they would like you to deal with |
| compete for the business again at renewal time. In | | | | this. Before resigning call all your clients and advise |
| preparation of leaving you will want to have a | | | | them that it is your last day with your current |
| conversation with your key accounts. This should be a | | | | employer. Give them your new employers name and |
| natural conversation over lunch, dinner, golf, or some | | | | make sure they have your cell phone number. Leave |
| other meeting with you client. In the conversation you | | | | your office clean, neat and orderly for the next person |
| want to say "I'm considering an opportunity and I may | | | | who will use it. Leave it in move in condition. Don't tell |
| be leaving my current firm". (Don't mention what firm | | | | your support staff you're leaving ahead of time or that |
| you're moving to) Just listen to what they say after | | | | you'll take them with you. Just let them know that your |
| you indicate you may be leaving you're current firm. | | | | new firm will recruit who you need. Tell your staff to |
| What you can't say is "I want you to follow me". | | | | look on Monster or Career Builder for an |
| Naturally there will be questions asked of you such as: | | | | advertisement and if interested to apply for the |
| Client: Why are you leaving? | | | | position or call your new employer and apply for a job. |
| Your Response: Changes have taken place in my | | | | On your first day at your new employer send out a |
| current firm that has caused the culture to change and | | | | press release. If by the 2nd day you don't hear from |
| ultimately I believe this will have an impact on how we | | | | your "In the bag" category #1 group, start calling them |
| service our clients. This is why I am choosing to leave | | | | and ask if they got the notice. They may have a spam |
| the firm and go with a firm that is dedicated in | | | | blocker that may have prevented the notice from |
| supporting me in providing quality customer service. | | | | getting through. This will give you a chance to set that |
| Client: Where are you going? | | | | meeting to go get the BOR. Once you have all the "In |
| Your Response: I can't tell you, I'm still being paid by my | | | | the bag" "tied up". Start focusing on the "I think so / 50 |
| current employer. It would be unethical for me to | | | | 50". Call them, go visit them, and push to get the BOR. |
| promote my new firm while still being employed by my | | | | The third group work hard to get them at renewal. |
| current firm. | | | | Good luck, if done right this should create a mental and |
| Client: When are you leaving? | | | | financial boost for you! |