Acrisure has built one of the largest insurance brokerage platforms in the world through an acquisition strategy that has brought hundreds of independent agencies under its umbrella. But alongside that rapid growth, the company has increasingly found itself in court pursuing former agency owners, executives, and producers who left after selling their businesses to the brokerage giant.
Court filings across multiple states reveal a consistent pattern: Acrisure frequently seeks to enforce non-compete agreements, non-solicitation provisions, confidentiality obligations, and other restrictive covenants signed during acquisitions and employment arrangements. While the company argues these lawsuits are necessary to protect its investments and client relationships, critics say the litigation reflects the growing tension between consolidators and the entrepreneurs who once owned the agencies they acquired.
One recent example involved Ryan Bedrosian, whose San Francisco-based agency was acquired by Acrisure in 2018. After leaving Acrisure and joining rival broker Alliant Insurance Services, Acrisure sued, alleging that Bedrosian violated non-compete and non-solicitation agreements and recruited colleagues away from the company. Acrisure sought court intervention to prevent further alleged breaches of those agreements. (Business Insurance)
Another high-profile dispute arose from Acrisure’s acquisition of businesses associated with SUNZ Holdings. Acrisure alleged that SUNZ owner Steven Herrig breached agreements connected to the transaction after Acrisure completed earnout payments and Herrig resigned. According to Acrisure’s lawsuit, the parties had agreed that SUNZ Insurance would continue using the acquired entities for key administrative services. Herrig and SUNZ disputed Acrisure’s claims, and a federal judge denied Acrisure’s request for a temporary restraining order while the litigation proceeded. (Business Insurance)
The company has also pursued legal action against former executives and producers who joined competing brokerages. In litigation involving former employees who departed for competitors, Acrisure has alleged misuse of confidential information, solicitation of clients, and violations of contractual restrictions. Courts have been asked to determine whether those restrictions are enforceable and whether former employees improperly competed against the company after their departures. (McGuireWoods)
Several cases specifically involve individuals who originally sold their agencies to Acrisure and later found themselves constrained by post-sale agreements. In one widely discussed Michigan dispute, former agency owner Leroy Wilbers challenged restrictive covenants stemming from the sale of his business. A court declined to immediately block enforcement of the restrictions while the case continued, highlighting the significant legal obligations that can accompany agency sale transactions. (Michigan Employment Law Advisor)
Acrisure maintains that these agreements are essential to protecting the value of the businesses it acquires. When the company pays substantial sums for agencies, client relationships, and goodwill, it argues that sellers should not be permitted to immediately compete against the platform they joined after closing a transaction.
As consolidation continues across the insurance brokerage sector, Acrisure’s litigation history underscores an important reality for agency owners considering a sale: acquisition agreements often come with significant post-closing obligations that can extend for years. While selling an agency can provide substantial financial rewards, sellers are typically required to comply with non-compete, non-solicitation, confidentiality, and other contractual provisions. When former owners are alleged to have violated those agreements, legal action may follow as acquiring firms seek to enforce the terms of the transaction and protect the value of their investment. As a result, prospective sellers should carefully evaluate acquisition offers and fully understand the restrictive covenants and long-term commitments that accompany them before signing a deal. Top of Form
Information for this article was provided by Acrisure. Views and claims expressed in this article are those of the source company and do not necessarily reflect the views of AgencyEquity.com. This article may have been edited with the help of AI.
