USI sues former broker over launching competing business

USI Insurance Services LLC on Friday sued a former broker in federal court in Kansas City, Kansas, saying she breached nonsolicitation and confidentiality agreements when launching her own business two weeks before her July 2024 termination.

The Valhalla, New York-based brokerage said in the lawsuit, USI Insurance Services LLC v. Rebecca Fowler, that two of its clients, Terrapin Investments and Apex Hospitality, have since started doing business with Fowler Consulting LLC.

USI said in the suit that it suffered irreparable harm from Ms. Fowler’s conduct and is “in a vulnerable position with the potential for continued loss of business and harm to its goodwill due to Fowler’s improper actions.”

Ms. Fowler joined USI in June 2023 and signed restrictive covenant agreements protecting confidential information and barring her from soliciting or attempting to divert services away from the brokerage, court records show.

Ms. Fowler used her USI-issued company laptop and confidential information to form Fowler Consulting, which she launched on the day of her termination. She did not respond to letters from USI reminding her of the restrictive covenants, the brokerage said.

The brokerage seeks injunctive relief as well as compensatory and punitive damages.

A spokesperson from USI declined to comment.

Representatives for Ms. Fowler did not respond to requests for comment.