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Are You Ready to Start an Independent Insurance Agency

Written by Shelby Hudson

March 21, 2022

Although it can be challenging, starting an independent insurance agency can be very rewarding. What’s better than being your boss and getting to be able to help clients protect their health and finances and provide yourself with a good, stable stream of income.

Plan for Success

There are many things to consider when it comes to starting an insurance agency, such as financing, a business plan, and investing in education. For more information on entrepreneurship, starting a business, and data development, check out the Small Business Administration’s website.

Get Your Capital

Startup capital is necessary to cover things like office space, equipment, furniture, E&O Insurance, and marketing. Also, don’t forget to include money to pay yourself and/or employees.

Licensed & State Regulations

No matter the state, you will be required to get licensed to sell insurance (if you aren’t already) and will need a license for each type of insurance you would like your agency to sell. Pre-licensing, licensing, and continuing education requirements vary by state. For specifics, check out your state’s local Big “I” association. The National Association of Insurance Commissioners has the rules of the sale of insurance and consumer protection information.

Carrier Access

Once you’re licensed, you want to make surer you get contracted with carriers who offer the products that you want to sell. To get yourself and the agency appointed with some companies, you may need a marketing plan, a business plan, and a decent sales background. Research your agency’s target market for each product and find out what companies offer products that will best suit them. Agent Pipeline offers the ability to get contracted with top carriers across many product lines.

Management

To start up an agency, you cant excel only in sales, you also need marketing and administrative skills. To ensure success, you will need to “wear many hats” until you hire on staff to fulfill all of those roles.

Technical Knowledge

To ensure you are providing your clients the information they need to make informed decisions, you will need a full understanding of the products your agency plans on offer; it is also crucial to train all new agents extensively on product knowledge. Learning should always be a priority for any insurance agent. Click here to see what Agent Pipeline will soon be offering to help you take your insurance agency’s education to the next level.

For more information on how you can get started opening an independent insurance agency, contact Agent Pipeline to talk about our agency building program and resources at 800.962.4693

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