Gallagher Sues Former Employees for Breaching Confidentiality and Nonsolicitation Agreements.

Gallagher is suing two former employees, James Baranello and Joseph Siringo, for allegedly soliciting clients and using confidential information after leaving to start their own brokerage firm, Cornerstone Risk Advisors. The insurance broker claims that the two solicited a large client and diverted other clients, including a plumbing company, an electric company, and a construction contracting firm. Gallagher is seeking damages and injunctive relief against Cornerstone and the former employees for violating their employment agreements.

Arthur J. Gallagher & Co. has filed a lawsuit against two former employees, James Baranello and Joseph Siringo, who left the company in May to start their own brokerage firm, Cornerstone Risk Advisors. The lawsuit, filed in federal court in New York, alleges that the former producers breached their employment agreements by soliciting Gallagher clients before and after they left the firm Gallagher sues former brokers who left to start firm^[1].

Baranello and Siringo signed agreements prohibiting them from sharing confidential information and soliciting Gallagher clients for two years if they left. According to the lawsuit, the brokers contacted the chief financial officer of their largest client before leaving Gallagher and sought to bring three construction-related Gallagher clients to their new firm. Gallagher is seeking injunctions against the two, barring them from soliciting Gallagher clients and prospects, recruiting Gallagher employees, and using the brokerage's confidential information Gallagher sues former brokers who left to start firm^[1].

The lawsuit highlights the importance of non-solicitation clauses in employment agreements, particularly in the insurance industry. Florida law states that an insurance contract is not rendered invalid by reason of having been solicited, handled, or procured by an unlicensed agent or customer representative The 2025 Florida Statutes^[2]. However, this does not prevent legal action against those who violate their employment agreements.

Gallagher is seeking damages and injunctive relief against Cornerstone and the former employees for violating their employment agreements. The case underscores the significance of maintaining confidentiality and respecting non-solicitation agreements in the insurance sector.