How difficult is it to start an insurance agency?

Question

I am currently an independent agent & do it part time to suppliment my regular income. I have been toying with the idea of starting an agency & contract/employ others so I can also suppliment.

I contract with a few companies now & wanted to see if it would be worth while to start my own agency and get a few small soliciting contracts with some companies that I know of.

Can you tell me how troublesome the process is? I am not trying to franchise though, like an Allstate or State Farm. I would prefer to keep the independence. Any ideas on the fees & costs?

I am already licensed & contracted with several big named & lesser known insurance companies. I used to work for a major area bank brokerage firm as well as an agent with a company & have since gone independent. I have been selling insurance for about 5 years now between annuities (fixed, VA and indexed), term, whole, senior, mortgage protection, and such.

My question is how difficult is the process to start an agency on my own? I know that there must be tons of forms to file & register, state fees, re-licensing as an agency as well as an independent agent. There in lies my question: do I basically need a proctologyst to do this?

How would I already know this? I have worked FOR companies, not BEEN a company. I am tying to take it to that next level. Most employees dont know how to, nor are requiered to know how to start up that company from scratch.

I am already licensed & contracted with several big named & lesser known insurance companies. I used to work for a major area bank brokerage firm as well as an agent with a company & have since gone independent. I have been selling insurance for about 5 years now between annuities (fixed, VA and indexed), term, whole, senior, mortgage protection, and such.

My question is how difficult is the process to start an agency on my own? I know that there must be tons of forms to file & register, state fees, re-licensing as an agency as well as an independent agent. There in lies my question: do I basically need a proctologyst to do this?

Answer 1

Actually, I've never lived in a state where it was a hard thing to do - you have to file the business like any other business, get a tax id number, like any other business. The biggest expense is E&O coverage, which will probably run you $5K a year to start. Then it's just liability coverage & wc for your employees.

You already have the carriers lined up - that's by FAR the hardest part of it, that, and oh yeah, SELLING enough to pay your overhead.

Answer 2

Starting An Insurance Agency

Answer 3

I might suggest one to try this web page where you can compare quotes from the best companies: http://INSURANCECOMPAREQUOTES.US/index.html?src=2YAidsr6p2O

RE :How difficult is it to start an insurance agency?
I am currently an independent agent & do it part time to suppliment my regular income. I have been toying with the idea of starting an agency & contract/employ others so I can also suppliment.

I contract with a few companies now & wanted to see if it would be worth while to start my own agency and get a few small soliciting contracts with some companies that I know of.

Can you tell me how troublesome the process is? I am not trying to franchise though, like an Allstate or State Farm. I would prefer to keep the independence. Any ideas on the fees & costs?
Update: I am already licensed & contracted with several big named & lesser known insurance companies. I used to work for a major area bank brokerage firm as well as an agent with a company & have since gone independent. I have been selling insurance for about 5 years now between annuities (fixed, VA and indexed), term, whole, senior, mortgage protection, and such.

My question is how difficult is the process to start an agency on my own? I know that there must be tons of forms to file & register, state fees, re-licensing as an agency as well as an independent agent. There in lies my question: do I basically need a proctologyst to do this?
Update 2: How would I already know this? I have worked FOR companies, not BEEN a company. I am tying to take it to that next level. Most employees dont know how to, nor are requiered to know how to start up that company from scratch.

I am already licensed & contracted with several big named & lesser known insurance companies. I used to work for a major area bank brokerage firm as well as an agent with a company & have since gone independent. I have been selling insurance for about 5 years now between annuities (fixed, VA and indexed), term, whole, senior, mortgage protection, and such.

My question is how difficult is the process to start an agency on my own? I know that there must be tons of forms to file & register, state fees, re-licensing as an agency as well as an independent agent. There in lies my question: do I basically need a proctologyst to do this?
Follow 1 answer

Answer 4

This Site Might Help You.

RE:
How difficult is it to start an insurance agency?
I am currently an independent agent & do it part time to suppliment my regular income. I have been toying with the idea of starting an agency & contract/employ others so I can also suppliment.

I contract with a few companies now & wanted to see if it would be worth while to start my own agency...

Answer 5

IT is NOT difficult at all!! You can begin as you are now working. A number of companies do not require large fees and costs. I work with a group called HBW Financial Services in California. I think that it costs less than $100 total to get with a number of the companies they represent and be able to hire others with them. They are into term, WL, UL, Mortgages, Annuities, Securities. I know that there are others out there too. Just begin looking online. No matter what, YOU can DO IT! Have a great holiday season!!
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Answer 6

depends...how much start up money do you have? you will have to be contracted with your companies. some are easier than others. in order to make a profit, you will need as many companies as possible to write with since you are an independent. i am not sure starting your own agency is something you want to do just to supplement...it takes a lot of time to make a go of it.

Answer 7

ask at www.insurance-forums.net There are many agents there who have gone independent after working for bigger conmpanies. They will walk you right through it.

Answer 8

Sorry but I think you should already know that, it's your business. You first have to have a license from the city and state so don't forget that tho. Good Luck To You.