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Oct 15
Producer Contracts Explained

As your agency formulates plans for its competitive future, increased sales through effective marketing are crucial. Hiring a new producer provides an avenue for the agency to market its products and services. The producer may also provide perpetuation options, develop product lines previously undersold, attract new company markets and apply their talents for the benefit of the agency.

Every producer in the agency should have a written, signed contract which serves as the basis of the business relationship. The contract defines the ownership of the business produced and provides the agency with legal recourse to discourage piracy of produced business. The keys to drafting a good agreement are creativity, fairness, communication between parties and mutual goal setting.

The newly updated Best Practices Guide to Producer Contracts can help. The 40-page guide walks the reader through many different areas within an effective agreement including: parties to the agreement, recitals, term of the agreement, responsibilities of the producer, responsibilities of the agency and more. With five sample contracts and the Word document provided, this is a must-have for principals, agents and their attorneys.

To view the complete line of Big “I" Best Practices products and educational webinars, visit us online or email Best Practices staff with questions.

If your agency is looking for support with the hiring, recruiting and assessment process, be sure to visit Big “I" Hires.


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