So, you’ve got your insurance license, and you’ve decided to hang out your shingle and go it alone. You want to go into business for yourself. But you’re unsure about how to start an insurance agency. There are a few things you need to consider before you get off the ground. No matter what type of insurance you sell, where you’re located, or what your business structure is, these few tips will help you get started properly.
Insurance for Yourself
Insurance agents generally keep a policy on themselves. At minimum, your coverage should include a business owner’s policy and errors and omissions insurance. That will protect you against losses in your business setting, as well as errors you might make when setting a client up with coverage.
Insurance to Sell
You’ll need agreements with a few of the big underwriters in order to offer competitive rates. Be sure to thoroughly investigate each company you choose to do business with. Know the benefits and drawbacks of each, and the structures of the different types of policies they offer. That will allow you to give your clients the best information available when you provide them with quotes.
Clients to Sell To
There are a few options for gaining a client base. You can start from the ground up and build your portfolio slowly, or you can purchase clients from another agency. Purchasing a “book” of clients comes with some risk – the clients you’ve become responsible for might choose to switch to another agency before you’ve even had an opportunity to earn a commission. But generally, purchasing a book of clients will give you the work (and the earnings) to get you off the ground.
These are just a few of the things you’ll need to consider when you’re thinking about how to start an insurance agency. Making sure you investigate, weigh and calculate all the options will assure that you start a successful business.