Exhibit 10.11
                              EMPLOYMENT AGREEMENT


         WHEREAS,  Goran Capital Inc., and its subsidiaries  (collectively,  the
"Company")  considers it essential to its best  interests and the best interests
of its  stockholders  to foster the continuous  employment of its key management
personnel and, accordingly, the Company desires to employ David L. Bates ("You",
"Your"or "Executive"), upon the terms and conditions hereinafter set forth; and

         WHEREAS,  the  Executive  desires to  continue  to be  employed  by the
Company, upon the terms and conditions contained herein.

         NOW,  THEREFORE,  in  consideration of the covenants and agreements set
forth below, the parties agree as follows:

1.       Employment

         1.1 Term of Agreement.  The Company agrees to employ  Executive as Vice
President  and General  Counsel,  effective  as of April 1, 1997 and  continuing
until March 31, 1998, unless such employment is terminated pursuant to Section 3
below; provided, however, that the term of this Agreement shall automatically be
extended  without  further  action of either party for  additional  one (1) year
periods thereafter unless, not later than six (6) months prior to the end of the
then  effective  term,  either  the  Company or the  Executive  shall have given
written  notice  that such party does not intend to extend  this  Agreement.  If
Company gives  Executive such a notice of  non-renewal,  Executive's  employment
shall  terminate as of the expiration  date of this  Agreement.  It is expressly
understood and agreed that a notice of  non-renewal  issued by the Company shall
not extinguish the Executive's non-competition obligations pursuant to Section 4
herein.

         1.2 Terms of  Employment.  During the Term, You agree to be a full-time
employee of the Company  serving in the position of Vice  President  and General
Counsel of the  Company and further  agree to devote  substantially  all of Your
working  time and  attention  to the business and affairs of the Company and, to
the extent  necessary to discharge  the  responsibilities  associated  with Your
position as Vice  President  and General  Counsel of the Company and to use Your
best  efforts to  perform  faithfully  and  efficiently  such  responsibilities.
Executive  shall perform such duties and  responsibilities  as may be determined
from time to time by the Chairman and/or Chief Executive  Officer of the Company
and the Board of Directors of the Company, which duties shall be consistent with
the position of Vice President and General  Counsel of the Company,  which shall
grant Executive authority, responsibility, title and standing comparable to that
of the vice president and general counsel of a stock  insurance  holding company
of similar  standing.  Your primary place of work will be at the company's  U.S.
headquarters in Indianapolis, Indiana, but it is understood and agreed that your
duties may require  travel.  In the event you are  relocated to another  Company
location,  the  Company  agrees  to pay for the  cost  of your  move  (including
temporary lodging expenses) and to facilitate the sale of your Indianapolis home
so that you will be enabled to purchase


<PAGE>



a new home in your new location  that is  comparable  in price to your  existing
home and have your family join you at such new location within two (2) months of
your  transfer  or such other  period as is  reasonable  considering  market and
location. Nothing herein shall prohibit You from devoting Your time to civic and
community activities or managing personal investments,  as long as the foregoing
do not interfere with the performance of Your duties hereunder.

         1.3  Appointment  and  Responsibility.  The Boards of  Directors of the
Company shall, following the effective date of this Agreement, elect and appoint
Executive as Vice President and General Counsel.  Consistent with Section 1.2 of
this Agreement,  Executive shall be primarily  responsible for the legal affairs
of the Company.

2.       Compensation, Benefits and Prerequisites

         2.1 Salary.  Company shall pay Executive a salary,  in equal  bi-weekly
installments, equal to an annualized salary rate of $110,000. Executive's salary
as payable  pursuant to this  Agreement  may be  increased  from time to time as
mutually  agreed upon by Executive  and the Company.  Notwithstanding  any other
provision  of this  Agreement,  Executive's  salary paid by Company for any year
covered by this  Agreement  shall not be less than such salary paid to Executive
for the immediately  preceding  calendar year. All salary and bonus amounts paid
to Executive pursuant to this Agreement shall be in U.S. dollars.

         2.2 Bonus.  The Company  and  Executive  understand  and agree that the
Company expects to achieve  significant growth during the term of this Agreement
and that Executive will make a material  contribution  to that growth which will
require  certain  personal and  familial  sacrifices  on the part of  Executive.
Accordingly,  it is the desire and intention of the Company to reward  Executive
for the attainment of that growth through bonus and other means (including,  but
not limited to,  stock  options,  stock  appreciation  rights and other forms of
incentive  compensation).  Therefore,  the Company will pay Executive a lump-sum
bonus  (subject to normal  withholdings)  within  thirty (30) business days from
receipt by Company of its consolidated,  annual audited financial  statements in
an amount which shall be  determined  in  accordance  with the  following  Bonus
Table. All amounts used for calculation  purposes in this section shall be based
on the audited,  consolidated financial statements of Goran Capital Inc. (or any
successor  thereto),  with such  financial  statements  having been  prepared in
accordance with applicable Generally Accepted Accounting Principles,  applied on
a consistent basis with that of prior years.

                                       -2-

<PAGE>

<TABLE>

                                   BONUS TABLE

<CAPTION>
    If Audited Net                          % of Annual Salary
    Income (as a % of                       Payable to Executive
    Budgeted Net Income) Is                       As Bonus

    <S>                                             <C>

    Less Than 75%                                   -0-
    75% or more, but less than 100%                 10%
    100% or more, but less than 125%                20%
    125% or more                                    30%

</TABLE>

         2.3  Employee  Benefits.  Executive  shall be  entitled  to receive all
benefits and  prerequisites  which are provided to other  Executives  of Company
under the  applicable  Company  plans and policies,  and to future  benefits and
prerequisites  made  generally  available to executive  employees of the Company
with duties and compensation comparable to that of Executive upon the same terms
and conditions as other Company participants in such plans.

         2.4      Additional Prerequisites.  During the term of this Agreement,
Company shall provide Executive with:

         (a) Not less than three (3) weeks paid  vacation  during each  calendar
year.

         (b) A vehicle commensurate with Executive's position.

         (c) A golfing  membership at Hillcrest Country Club or other comparable
country club.

         2.7 Expenses. During the period of his employment hereunder,  Executive
shall be entitled to receive  reimbursement from the Company (in accordance with
the policies  and  procedures  in effect for the  Company's  employees)  for all
reasonable travel,  entertainment and other business expenses incurred by him in
connection with his services hereunder.

3.       Termination of Executive's Employment

         3.1 Termination of Employment and Severance Pay. Executive's employment
under  this  Agreement  may be  terminated  by either  party at any time for any
reason; provided,  however, that if Executive's employment is terminated for any
reason other than for cause, he shall receive, as severance pay, one (1) month's
current salary for each full and partial year of service.  Further, if Executive
shall be terminated  without cause,  receipt of severance  payments described in
the  preceding  sentence are  conditioned  upon  execution by Executive  and the
Company of that mutual Waiver and Release attached hereto as Exhibit A. Further,
Executive shall receive severance pay

                                       -3-

<PAGE>



in accordance  with this Section 3.1 if Executive shall terminate this Agreement
due to a breach  thereof  by the  Company or if  Executive  is  directed  by the
Company (including, if applicable, any successor) to engage in any act or action
constituting  fraud or any  unlawful  conduct  relating  to the  Company  or its
business as may be determined by application of applicable law.

         3.2 Cause. For purposes of this Section 3, "cause" shall mean:

         (a)      the Executive being convicted in the United States of America,
                  any State therein,  or the District of Columbia,  or in Canada
                  or any Province therein (each, a "Relevant Jurisdiction"),  of
                  a crime for which the maximum penalty may include imprisonment
                  for one year or longer (a  "felony") or the  Executive  having
                  entered  against him or consenting to any judgment,  decree or
                  order (whether  criminal or otherwise)  based upon  fraudulent
                  conduct or violation of securities laws;

         (b)      the Executive's  being indicted for, charged with or otherwise
                  the subject of any formal  proceeding  (criminal or otherwise)
                  in connection with any felony, fraudulent conduct or violation
                  of securities  laws, in a case brought by a law enforcement or
                  securities  regulatory  official,  agency  or  authority  in a
                  Relevant Jurisdiction;

         (c)      the Executive  engaging in fraud,  or engaging in any unlawful
                  conduct  relating  to the Company or its  business,  in either
                  case  as   determined   under   the   laws  of  any   Relevant
                  Jurisdiction;

         (d)      the Executive breaching any provision of this Agreement; or

         (e)      gross negligence or willful misconduct by the Executive in the
                  performance of his duties hereunder.

         3.3 Change of Control.  Notwithstanding  any other  provisions  of this
Agreement,  if (i) a Change of Control shall occur;  and (ii) within twelve (12)
months  of any such  Change  of  Control,  Executive  (a)  receives  a Notice of
Non-Renewal,  (b) is  terminated  for any reason  other  than for cause,  or (c)
Company (including its successors,  if any) is in breach of this Agreement, then
Executive  shall continue to receive his current salary (in bi-weekly  payments)
until the earlier to occur of:

         (a)      Executive  shall  commence  employment  with a firm or  entity
                  other  than the  Company  such  that his base  salary is at or
                  greater than existing base salary  pursuant to this Agreement;
                  or

         (b) The expiration of seventy-eight (78) weeks from Executive's Date of
Termination.


                                       -4-

<PAGE>



The receipt by Executive of payment pursuant to this Section 3.3 is specifically
conditioned,  and no  payments  pursuant  to this  Section  3.3 shall be made to
Executive if he is, at the time of his  Termination,  in breach of any provision
(specifically  including,  but not limited to, the  provisions of this Agreement
pertaining  to  non-competition  and  confidentiality)  of this  Agreement  and,
further,  if such payments have already begun,  the  continuation of payments to
Executive  pursuant to this Section 3.3 shall cease at the time Executive  shall
fail to  comply  with the  non-competition  and  confidentiality  provisions  of
Article 4 herein.  It is expressly  understood and agreed that the amount of any
payment to Executive required pursuant to this Section 3.3 shall be reduced (but
not below  zero) by any  compensation  received by  Executive  during the period
called for in this Section 3.3.

         A Change of Control  shall mean the  inability of the Symons  family to
cause the  election of a majority of the  members of the Board of  Directors  of
Goran  Capital  Inc.,  Symons  International  Group,  Inc.  or their  respective
successors.

         3.4 Disability. So long as otherwise permitted by law, if Executive has
become permanently disabled from performing his duties under this Agreement, the
Company's  Chairman  of the  Board,  may,  in  his  discretion,  determine  that
Executive  will not return to work and  terminate  his  employment  as  provided
below. Upon any such termination for disability,  Executive shall be entitled to
such disability,  medical, life insurance, and other benefits as may be provided
generally  for  disabled  employees  of  Company  during  the  period he remains
disabled.  Permanent  disability  shall be  determined  pursuant to the terms of
Executive's long term disability  insurance  policy provided by the Company.  If
Company elects to terminate this Agreement  based on such permanent  disability,
such termination shall be for cause.

         3.5  Indemnification.  Executive  shall be indemnified by Company (and,
where  applicable,   its  subsidiaries)  to  the  maximum  extent  permitted  by
applicable law for actions  undertaken for, or on behalf of, the Company and its
subsidiaries.

4.       Non-Competition, Confidentiality and Trade Secrets

         4.1  Noncompetition.  In consideration  of the Company's  entering into
this Agreement and the  compensation  and benefits to be provided by the Company
to You hereunder,  and further in  consideration of Your exposure to proprietary
information of the Company, You agree as follows:

         (a)      Until the date of  termination or expiration of this Agreement
                  for any reason  (the "Date of  Termination")  You agree not to
                  enter into  competitive  endeavors  and not to  undertake  any
                  commercial activity which is contrary to the best interests of
                  the  Company  or  its  affiliates,   including,   directly  or
                  indirectly,  becoming an employee,  consultant,  owner (except
                  for passive  investments  of not more than one percent (1%) of
                  the  outstanding  shares of, or any other equity  interest in,
                  any company or entity listed or traded on a

                                                      -5-

<PAGE>



                  national   securities   exchange  or  in  an  over-the-counter
                  securities  market),   officer,   agent  or  director  of,  or
                  otherwise participating in the management,  operation, control
                  or profits of (a) any firm or person  engaged in the operation
                  of  a  business   engaged  in  the  acquisition  of  insurance
                  businesses  or (b) any firm or person  which  either  directly
                  competes  with a line or  lines  of  business  of the  Company
                  accounting  for  five  percent  (5%) or more of the  Company's
                  gross sales, revenues or earnings before taxes or derives five
                  percent  (5%) or more of such firm's or person's  gross sales,
                  revenues  or  earnings  before  taxes  from a line or lines of
                  business which directly compete with the Company.

         Notwithstanding  any provision of this  Agreement to the contrary,  You
agree that Your breach of the provisions of this Section 4.1(a) shall permit the
Company to terminate Your employment for cause.

         (b)      If Your employment is terminated by You, or by reason of Your
                  Disability, by the Company for cause, or pursuant to a notice
                  of non-renewal as outlined in Section 1.1, then for two (2)
                  years after the Date of Termination, You agree not to become,
                  directly or indirectly, an employee, consultant, owner (except
                  for passive investments of not more than one percent (1%) of
                  the outstanding shares of, or any other equity interest in, 
                  any company or entity listed or traded on a national
                  securities exchange or in an over-the-counter securities
                  market), officer, agent or director of, or otherwise to
                  participate in the management, operation, control or profits
                  of, any firm or person which directly competes with a business
                  of the Company which at the Date of Termination produced any
                  class of products or business accounting for five percent (5%)
                  or more of the Company's gross sales, revenues or earnings
                  before taxes at which the Date of Termination derived five
                  percent (5%) or more of such firm's or person's gross sales,
                  revenues or earnings before taxes.  It is expressly agreed and
                  understood that this Section 4.1(b) shall not apply to a
                  public accounting or consulting firm.

         (c)      You acknowledge and agree that damages for breach of the
                  covenant not to compete in this Section  4.1 will be difficult
                  to determine and will not afford a full and adequate remedy,
                  and therefore agree that the Company shall be entitled to an
                  immediate injunction and restraining order (without the
                  necessity of a bond) to prevent such breach or threatened or
                  continued breach by You and any persons or entities acting for
                  or with You, without having to prove damages, and to all costs
                  and expenses (if a court or arbitrator determines that the
                  Executive has breached the covenant not to compete in this
                  Section 4.1, including reasonable attorneys' fees and costs,
                  in addition to any other remedies to which the Company may be
                  entitled at law or in equity.  You and the Company agree that
                  the provisions of this covenant not to compete are reasonable
                  and necessary for the operation of the Company and its

                                       -6-

<PAGE>



                  subsidiaries.   However,   should  any  court  or   arbitrator
                  determine  that any  provision of this covenant not to compete
                  is unreasonable,  either in period of time, geographical area,
                  or  otherwise,  the parties  agree that this  covenant  not to
                  compete  should be  interpreted  and  enforced  to the maximum
                  extent which such court or arbitrator deems reasonable.

         4.2 Confidentiality.  You shall not knowingly disclose or reveal to any
unauthorized  person,  during  or after  the  Term,  any  trade  secret or other
confidential  information (as outlined in the Indiana Uniform Trade Secrets Act)
relating to the  Company or any of its  affiliates,  or any of their  respective
businesses or principals, and You confirm that such information is the exclusive
property of the Company and its  affiliates.  You agree to hold as the Company's
property all memoranda,  books,  papers,  letters and other data, and all copies
thereof or therefrom, in any way relating to the business of the Company and its
affiliates, whether made by You or otherwise coming into Your possession and, on
termination  of Your  employment,  or on demand of the  Company at any time,  to
deliver the same to the Company.

         Any ideas, processes, characters,  productions, schemes, titles, names,
formats,  policies,   adaptations,   plots,  slogans,   catchwords,   incidents,
treatment,  and dialogue which You may conceive,  create,  organize,  prepare or
produce during the period of Your  employment and which ideas,  processes,  etc.
relate to any of the  businesses  of the Company,  shall be owned by the Company
and its  affiliates  whether  or not You should in fact  execute  an  assignment
thereof to the Company, but You agree to execute any assignment thereof or other
instrument or document  which may be reasonably  necessary to protect and secure
such rights to the Company.

5.       Miscellaneous

         5.1 Amendment. This Agreement may be amended only in writing, signed by
both parties.

         5.2 Entire Agreement.  This Agreement contains the entire understanding
of the parties with regard to all matters contained  herein.  There are no other
agreements,  conditions  or  representations,  oral  or  written,  expressed  or
implied,  with regard to the  employment of Executive or the  obligations of the
Company  or the  Executive.  This  Agreement  supersedes  all  prior  employment
contracts and non-competition agreements between the parties.

         5.3 Notices. Any notice required to be given under this Agreement shall
be in  writing  and shall be  delivered  either in  person  or by  certified  or
registered mail, return receipt requested.
Any notice by mail shall be addressed as follows:

                                       -7-

<PAGE>



         If to the Company, to:

         Chief Executive Officer
         Goran Capital Inc.
         4720 Kingsway Drive
         Indianapolis, Indiana  46205
         Attention:  President and Chief Executive Officer


         If to Executive, to:

         David L. Bates
         9932 Springstone Road
         McCordsville, Indiana  46055

or to such other  addresses  as one party may  designate in writing to the other
party from time to time.

         5.4 Waiver of Breach. Any waiver by either party of compliance with any
provision of this Agreement by the other party shall not operate or be construed
as a waiver of any  other  provision  of this  Agreement,  or of any  subsequent
breach by such party of a provision of this Agreement.

         5.5 Validity.  The invalidity or  unenforceability  of any provision of
this  Agreement  shall not affect the  validity or  enforceability  of any other
provision of this Agreement, which shall remain in full force and effect.

         5.6 Governing Law. This Agreement  shall be interpreted and enforced in
accordance  with the laws of the  State of  Indiana,  without  giving  effect to
conflict of law principles.

         5.7 Headings. The headings of articles and sections herein are included
solely for  convenience  and  reference  and shall not  control  the  meaning or
interpretation of any of the provisions of this Agreement.

         5.8  Counterparts.  This  Agreement  may be  executed  by either of the
parties in  counterparts,  each of which shall be deemed to be an original,  but
all such counterparts shall constitute a single instrument.

         5.9 Survival.  Company's  obligations under Section 3.1 and Executive's
obligations under Section 4 shall survive the termination and expiration of this
Agreement in accordance  with the specific  provisions of those  Paragraphs  and
Sections and this  Agreement in its entirety shall be binding upon, and inure to
the benefit of, the successors and assigns of the parties hereto.


                                       -8-

<PAGE>



         5.10  Miscellaneous.  No provision of this  Agreement  may be modified,
waived or discharged unless such waiver,  modification or discharge is agreed to
in writing and signed by You and such officer as may be specifically  designated
by the Board.  No waiver by either party hereto at any time of any breach by the
other party hereto of, or  compliance  with,  any condition or provision of this
Agreement  to be  performed  by such  other  party  shall be  deemed a waiver of
similar  or  dissimilar  provisions  or  conditions  at the same or at any prior
subsequent time.

         IN WITNESS WHEREOF,  the parties have executed this Agreement effective
as of the date set forth above.

                                          GORAN CAPITAL INC. AND SUBSIDIARIES
                                          ("Company")


                                          By:__________________________________
                                          Title:_______________________________

State of Indiana            )
                                     ) SS:
County of __________)

         Before me the undersigned,  a Notary Public for _______________ County,
State  of  Indiana,  personally  appeared  ______________________________,   and
acknowledged   the   execution   of  this   instrument   this   _______  day  of
___________________, 1997.

                                           -------------------------------
                                           ,Notary Public
                                           State of Indiana
                                           My Commission Expires:______________

                                       -9-

<PAGE>


                                          DAVID L. BATES
                                          ("Executive")



                                       ---------------------------------------



State of Indiana            )
                                     ) SS:
County of __________)

         Before me the undersigned,  a Notary Public for _______________ County,
State  of  Indiana,  personally  appeared  ______________________________,   and
acknowledged   the   execution   of  this   instrument   this   _______  day  of
___________________, 1997.

                                       -------------------------------
                                       , Notary Public
                                       State of Indiana
                                       My Commission Expires:_________________

                                      -10-