What is the downside of having a non-compete clause as a captive agent?

Answer by  technogeek (6640)

The downside of it is the fact that you cannot work for a competitor for a specified period, which prevents you from making any money.

Answer by  Sylvia (759)

Should you leave that position for any reason you are unable to obtain employment in that particular industry for the amount of time indicated in the clause, usually 1 year. You will need to find employment in a completely different field until the time has past.

Answer by  Rubberchicken (819)

The downside to this clause is that effectively, you are not able to contact any of your current policy owners for new business if you leave the captive insurer that you currently represent. The non-compete clause, however, usually is temporary and lasts from one-to-two years, respectively. Expect to cold call for new business during that timeframe.

Answer by  tamarawilhite (17883)

Not only can you not work for the competition, you may not be able to work in that industry for a period of time if you change employers. You may not even be able to work in that area even if laid off.