Protecting Your Residuals: A Contract Checklist
Despite the perception that contracts are fixed, static documents, in reality, contract terms between a carrier and agent are the unique, case-by-case product of the negotiation between the parties. Put another way, contracts are similar to snowflakes in that no two are alike. In most cases, when addressing the issue of residual commissions, the best approach for the agent is to include provisional language that almost certainly isn’t there at the beginning of the negotiation phase.
When addressing the question of residual commissions, as a general matter, your agreement should include: