A member recently brought to our attention the importance of reviewing contracts with companies, brokers and others. He found that a particular contract placed ownership of the business with the broker, not the agent.
The ownership of expirations is a key component in agency valuation and should be protected in any agreement. Also, termination provisions should be reviewed to assure that you are given proper notice should the other party decide to cancel the agreement. In Texas, there are notice provisions built into the law but those can be set aside by an addendum to the contract signed by you. And although everything may seem great today, it is important to recognize that the future may not be so bright.
IIAT has compiled a variety of resources to help guide you through the process including sample wording that addresses the most critical issues for our members. If you need help, check out the Agency Agreements information on our website which can be found here.