Knight Insurance Group has become an Employee-Owned Organization
- Knight Insurance Group
- Aug 30, 2022
- 2 min read
Updated: Jul 31
Effective August 1, we became an Employee-Owned Organization, or ESOP. Our conversion to an employee-owned agency was 17 years in the making. In 2005, we first investigated the idea of perpetuating the agency via an ESOP. We liked the idea that employees would be rewarded for helping build the agency. After all, it takes everyone doing their best to make the agency a success. The ESOP structure is the perfect vehicle to share ownership with all employees. On top of that, it perpetuates the agency—not just to the next generation, but to the generation after and the generation after.
Since becoming an ESOP, we are often asked why we did it. Why did we sell the company to the employees? It is true— we could have sold to an outside third party for a higher price. But money was not our only motivation. Instead, our choice of perpetuation was driven by benefits that only an ESOP can offer.
Our Why
Employee Reward. The ESOP rewards employees for helping build the agency. So, it seemed only fitting that they share in our success in a tangible way.
Legacy. Knight Insurance Group lives on through the ESOP. Had a third party purchased the agency, the name would have been lost, as has happened to many other local firms.
Benefits to all Stakeholders. There’s a feeling in the air of a close-knit family, which extends to how we support all our stakeholder groups. Clients benefit from long-term, stable and personal relationships with employee-owners who are committed to their success. They do business with a local company that supports other local companies. Carriers enjoy partnering with an independently owned agency filled with employee owners motivated for mutual success. And now, because the owners are the employees, two stakeholder groups have merged into one.
Leadership Continuation. The existing leadership team wanted to continue to guide the company. Had we sold to an outside firm, the leaders would have potentially exited.
