Becoming an independent insurance agency owner can be a particularly attractive option. You’ll have the opportunity to make your own hours, be your own boss, earn residual income, and help people. Many agents and business people with knowledge of the insurance industry have a desire to start their own agency. But it isn’t without challenges. Here are a few tips that you should consider before beginning.
Draft a business plan. If you’re going to have confidence in your business, you need to know that you are prepared. A business plan can help you feel more confident that you understand how to be successful.
Select a legal structure
Sole proprietorship, partnership, LLC, or corporation? Each of these comes with own pros and cons. Investigate each one carefully.
Choose your business name
Develop something creative that sticks out in the industry. There are no hard-and-fast rules. A clever name can work as well as a more traditional name, which can carry an aura of professionalism and legitimacy.
Register with the state
Your state’s insurance commissioning office will have information about how to register as a business entity.
Licenses and permits
Different states have different requirements, so you’ll need to investigate the unique requirements applicable to your state.
Errors and omissions (E&O) insurance
What happens when an error in paperwork costs a lot of money? Who pays for it? Errors and omissions insurance offers coverage for these types of risks. In fact, many states require it.