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Overview of Non-Compete and Non-Solicitation Agreements By Aaron Simon

Many insurance agencies have non-compete agreements and non-solicitation agreements with their insurance agents. These are often valuable tools to protect an agency’s book of business and make sure agents are loyal to their agency. However, if a problem were to arise in this context, are these agreements enforceable? The answer is sometimes yes and sometimes no. To begin with it is important to distinguish between a non-compete agreement and a non-solicitation agreement. A non-compete agreement restricts a former agent’s/employee’s ability to go work for a competitor agency in a certain geographic area or range for a certain specified period of time. These types of agreements must be reasonable and are typically strictly enforced against employers. A nonsolicitation agreement restricts a former agent’s/ employee’s ability to solicit an agency’s book of business for a certain specified period of time.

Aaron Simon is a litigation and transactional law attorney with the law firm of Brownson Norby, PLLC. He is admitted to practice law in State and Federal Court in Minnesota and Wisconsin. A large focus of Mr. Simon’s practice involves defending insurance agents and agencies, handling insurance coverage matters, and representing insurance agencies and agents in contract and transactional matters. To learn more about Aaron, go to professionals/aaron-m-simon/

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Winter 2019 • The Minnesota News 15

Profile for MIIAB

The Minnesota News - Winter 2019