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Helena Derbyshire
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Jun 23, 2026
Noncompete and Nonsolicitation Clauses in Insurer and Insurance Brokerage M&A
3:45
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4:29

Helena DerbyshireGUEST
Good question, Rob, because of course the seller's entitled to protect the value in the business they've just paid for, but there are quite a few parameters around enforceability of restrictive covenants and that's not guaranteed.

Helena DerbyshireGUEST
The main reason for that is that the starting points that the courts in the UK have is that a covenant of this nature is in restraint of trade, and that's against public policy.

Helena DerbyshireGUEST
So in order to be able to enforce a restriction, the party that wants the protection really needs to be able to demonstrate that it goes no further than is absolutely necessary to protect a legitimate business interest.

Helena DerbyshireGUEST
In the context of a business sale, that would be protecting the goodwill in the business.

Helena DerbyshireGUEST
When you're looking at the enforceability of covenants, there are a number of things that the courts will take into account.
10 MINS LATER
