|
|
| *Ostroff, Fair and Company>>>Insurance |
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? 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. Source(s): agent, 20+ years 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. 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. i am an agent 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!! Eds 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. |
| Tags |
| Personal Finance Investing Insurance Credit Corporations |
Finance Categories--Copyright/IP Policy--Contact Webmaster |