Becoming an Adult

3 Tips For Starting Your Own Property And Casualty Insurance Agency

21 May 2018

Robin King

After years of working as a property and casualty insurance agent, it is natural to consider starting your own insurance agency. After all, you already have the in-depth knowledge of property insurance products and a solid understanding of the type of renter's, homeowners, and other forms of property insurance clients want most. As the owner of your own agency, you would have much higher income potential as well as more freedom. Here are a few tips for starting your own property and casualty insurance agency.

1. Determine the Correct Business Structure

Before you are allowed to operate as your own insurance agency, you must become registered in your state as an official business. If you plan to operate as an independent agent without any staff, for the time being, you may want to start off as a sole proprietor. If you plan to have a team of agents, or even just an office manager or other administrative staff, it probably makes more sense to register as an LLC or an S-Corp. These are more complicated and costly to set up, but often have tax benefits and also protect your personal finances if you are sued by a client.

2. Become Licensed

Some agents starting their own business don't realize that in addition to having an active insurance license as an individual agent, they must also get an official license for the actual agency. This process and the fee involved vary by state, but no matter what state you are in, you will not be allowed to operate as an insurance agency until your paperwork has been filed, approved, and you've been given a license number. In addition, each agent you hire to work for you will need to have a current license as well.

3. Focus on Marketing 

One downside to owning your own agency is that you are now responsible for all of your own marketing and attracting and retaining clients. It's generally frowned upon to try to bring your old clients with you to your new agency, and in some cases, you may have signed a non-compete clause in your new hire paperwork.

Instead, focus on building your new brand through social media, email marketing, networking, and direct mail. You may want to outsource this task to a marketing company specializing in the insurance industry since marketing can be very time-consuming.

With the right business plan and attention to detail, you will soon be on the road to owning your own insurance agency. Following these tips will ensure that you avoid common pitfalls when starting your own property and casualty insurance agency. For more information on how to start casualty insurance agency, contact your local insurance company today.

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