Do you have the itch to start something new? Some people are cut out to own their own Agency and some are not. If you think you have what it takes keep reading for a few tips to get the ball rolling.
What you need
First and foremost you will need the “Entrepreneurial spirit”. You have to have that drive to seek out change rather than waiting to adapt to it. It’s a mindset that embraces critical questioning, innovation, service and continuous improvement.
However, you can have a dream without any real means of making it a reality. Capital is important to get started. You can start a new agency for as little as $5,000 and up, it depends on your needs, location, and what kind of agency you want to have. Allstate suggests you have $100K available to get things moving. This is to cover the usual start-up costs like, rent, location improvements, licensing, computers, etc. Of course you hope to start making money the day you open the doors but in case it takes a little bit of time you should have some cushion.
Each state has its own requirements, but in most states licensure requirements are a process of insurance-related coursework and the passing of several exams. However, there are also strict rules and regulations about, continuing education, renewals and some states require electronic fingerprints for a criminal background checks. You must be licensed to sell insurance in each state that you plan on soliciting business. While some states allow you to transfer your license, some do not, so do your research before setting up shop.
Don’t forget about your insurance, in order to sell insurance, you need insurance. It’s easy to start with a Business Owner Policy (BOP) and/or Errors and Omissions (E&O) insurance. A BOP is designed for small and medium sized businesses. It is usually general liability insurance and property insurance bundled into a single policy that offers a reduced premium. E&O is a form of liability insurance that protects professionals from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit. Finally, we suggest getting life insurance for the amount of debt you have on the agency. Protect your family in your new venture.
Insurance is one of those industries that typically is untroubled by the state of the economy. Your potential customers are already interested and searching for someone like you. So, if you are ready to take the plunge and buy your own agency, Contact Us about getting the capital to get you there.