How To Create Your Own Insurance Agency

If you have been working in the insurance industry for quite some time now, don't you think it is about time you create your own insurance agency? It will be easier now that you have a background on the goings on in an insurance agency. Besides, having your own insurance agency is more lucrative than being a mere employee. What's there to lose? You got the skill, the talent and the money. Here's how to make sure you are doing the right thing in building your own insurance agency.

  1. Find the type of insurance that you want to concentrate on. The most common types of insurance are health, life and vehicle insurance. Among these three, the commonly enrolled insurance is vehicle insurance. Health insurance is second while only several apply for a life insurance. However, life insurance has more compensation for the seller than the compensation vehicle insurance can give.
  2. Get a license. Before you will be able to sell insurance, you must have a license. Ask your state's Department of Insurance for the requirements. 
  3. Prepare for the licensing exam. To pass the educational requirements of the Department of Insurance, you can enroll in a one-week course. Schools such as Kaplan Financial and Adbanker are both popular. Even though you have experience in insurance sales, still try to enroll. Some people say that the licensing exam is easy, but don't be fooled. Study well and pass the exam. After passing, that is when you can start building your own insurance agency.
  4. After getting licensed, obtain a surety bond and E&O (errors & omission) insurance. Surety bond is like an insurance that will pay the customer for any services or agreement that you fail to give. E&O insurance, on the other hand, shields you from mistakes or omission that you have committed which resulted to your client's big loss. Search the Internet on how and where to get these within your state.
  5. Build up your clientele. The easiest form of advertising is through word of mouth. Make use of your relatives and friends. Let them know that you are into this business now and encourage them to spread the word to their friends and colleagues. Investing in insurance is a tricky business. It is easier to get clients if a common friend can vouch for you. 
  6. Once you have a regular clientele, widen your marketing power by getting a license for other insurance types, which are different from the one you specialized in. Like before, you have to pass an exam to get licensed. Choose a new license which you think you client needs. For example, if a client of yours needs auto insurance, then go to that field.
  7. Gather your team. Find insurance agents for your own company. Better yet, choose each one with a different specialty. Branching out will be easier and faster this way. Besides, no one has to have all licenses.  

Now that you know how to create your own insurance agency, pretty soon you'll be changing gears from being an employee to being your own boss.


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