Going into business for yourself and starting up your own independent insurance agency can be a thrilling, fulfilling, and rewarding experience, but you need to understand the business and its requirements before you can hang your shingle.
Insurance, after all, is a business of relationships, and while you may have many on your own as an agent, by recruiting several associate agents, you will build your network significantly. By helping to protect families, individuals, and businesses from the disasters that can occur in life, you will also be creating a lucrative income for yourself and others.
Of course, all of this starts by getting the business off the ground. The following are the basic steps you should take before you get an insurance agency going:
• If you are new to the business, make sure to obtain the required licensing. There are many training courses (online and in person), books, and training professionals who can help you to be ready for the insurance exam in your state. Keep in mind that you will need to write different exams for property and casualty, life and health insurance. It is becoming increasingly easy to obtain a license in more than one state as a result of more common uniform licensing standards among many states.
• If you are already in the business, leave your existing captive agency or MGA on a positive note. Go with grace and well wishes. Make sure to look into the agreement that you had to see if it included a non-compete clause. If one is present, consult with an attorney of employment law to see if it is binding, as many aren’t. Determine whether or not any of your book of business belongs to you and if you can bring it with you. If you can, this will become the basis of your new agency.
Also, keep updated on insurance news matters and industry changes to help familurize yourself with the ups and downs of the . For more live insurance news updates.