Small Business Brief


A Brief and Thorough Guide to Starting a Licensed Insurance Agency

Do you have experience in insurance and want to start a business that keeps people covered in different situations? Are you unfamiliar with the tools needed to start an agency?

If so, then you need to be aware of certain steps that allow you to start a licensed insurance agency correctly. The goal is to have the right people on your team and the resources that will keep your agency on its feet for as long as possible.

You must also take advantage of the tools that will make your services readily available to the people who need them. With our knowledge of starting small businesses, your agency will become a reliable name in the insurance field over time.

Here is a brief and thorough guide to starting a licensed insurance agency.

1. Save Money for Beginning and Maintaining

Starting a business requires having the money to become official and stay a trusted name, and insurance agencies need capital in different areas. Our first step in how to start an insurance agency is building up the funds needed to start your business.

Some money needs to be saved for licensing and providing the insurance, while other funds should go towards renting your facility. You’ll also need money for legal costs and insurance for the building you operate in when there’s an emergency.

2. Lease or Buy Office Space

Next, you’ll need to pick out office space that will allow you to provide your services to as many people as possible. The location you pick will depend on the type of insurance you provide, and it should be where the majority of people in your community can reach.

Whether you lease or buy space for your licensed insurance agency will depend on your current budget. It may be best to lease if you want to save money at the moment and then buy a new office once you’ve established yourself.

3. Put Together a Team

One of the factors for how to become an independent insurance agency is having employees with the right experience. Some will need to know how to advertise or protect clients’ data on a digital level, while others understand customer service to build long-lasting relationships.

Give each of your workers specific roles so that you have all the angles of your business covered. If you provide different kinds of insurance, then they will need to be trained in how to sell to the right people.

4. Find Insurance Carriers

Knowing how to become an insurance agent involves understanding the role of insurance carriers. These companies will allow your payments and claims process at a rate that will allow your company to keep providing services.

Make sure that you present a business plan and previous loss ratios to potential carriers. Even if you are running a startup, carriers will most likely work with agents who can fulfill a consistent volume.

5. Create an Online Presence

The digital world allows you to connect with people in different parts of the world, and your insurance might be useful to people out of town. That’s where an online presence comes into play.

Using an insurance agency SEO will allow you to use the right words to help potential clients find your company on Google and other search engines. Facebook, Twitter, and other social media websites can also promote your services and give a face to your brand.

Starting Your Licensed Insurance Agency

In order to get your licensed insurance agency off the ground, you need the right precautions for long-term preservation. These factors include a budget that can support a startup and a relationship with reliable carriers.

You’ll also need an office that allows your services to flourish, and your employees need to be people that clients can depend on. Managing SEO and social media will also help you reach more people than just those in the neighborhood.

With this guide, your insurance agency can become a reliable brand in no time.

For more of our small business expertise, check out our guides today to start making money doing what you love.