NLIC.org

Joshua Said:

What kind of insurance does a nursing agency in TX need if the staff is only subcontracted employees?

We Answered:

Yep, Texas is the only state where Workers Comp insurance is not required by law. HOWEVER. If you hire an uninsured sub, then YOU are still on the hoook for the benefits, even if you don't have a policy in place.

So. You can't buy workers comp insurance for just subs. But unless you want to be stuck holding the bag, you will need to require your subs to buy workers comp insurance, AND provide you with proof of coverage. Otherwise, YOU will have to pay lost wages and medical costs.

The same goes for professional liability, auto liability, and general liability - YOU, the general contractor, are on the hook, unless your subs are fully insured, naming you "additional insured" on their policies.

See, too many businesses try to get around paying for benefits and coverages for employees, and to get around paying taxes on their payroll, by calling them subs. So the law has reacted, by holding the general responsible for any uninsured subcontractors.

Your agent should be advising this.

If the money passes through your organization, you DO need liability, workers comp, auto liability, professional liability, and likely property coverage.

Brett Said:

How do i get appointed by an insurance agency to sell insurance in Massachusetts in starting an ind ins agency?

We Answered:

yeah, good luck on that.

From scratch, with no book to transfer over, you're flat out not going to get appointed by any auto carriers. Period. Which means, no homeowners carriers that also write auto, either.

There's no advantage, being a minority here. The problem is, 95% of new agents wash out. If you have no insurance experience, no book to roll over, no connections with marketing reps, you're not going to get any appointments.

Your BEST bet, is to go work for another independent agent as a producer. That way, you'll have the support staff training you in the business, and you'll find out if you can sell enough to keep eating - AND, you'll establish a book of business, and make friends with the marketing reps you'll need to get appointed.

Marion Said:

How much money would be needed to start an insurance agency?

We Answered:

It would be based on location and how much you want to spend in office equipment. $25,000 to $75,000

Nicole Said:

How would your homeowners insurance agency know what breed of dog you have?

We Answered:

They don't ask, but there is a good chance they will find out anyway. My aunt has a trampoline in her back yard, which is prohibited, but she figured no one would ever know. It went unnoticed until some teenager tried to dial a number on his cell and hit the front of her house. Her insurance company (along with his) came out to inspect the damage and saw the trampoline.

They also find out when the dog attacks someone in the neighborhood or gets loose and chases the mailman and a complaint is filed.

There are plenty of incidents that could take place that would cause the insurance company to come out.

Constance Said:

What is a franchise insurance agency and how is it different from a normal insurance agency?

We Answered:

Premiums are ALWAYS given back to the insurance company, and a commission is paid to the agency, based on the premium dollars.

Agencies may not invest premiums, manage funds, or retain them. Many times, they may not write claims checks.

Agencies do "front line" underwriting, which is double checked against the carrier's underwriters. The better front line underwriting an agency does, the more leeway they have, when requesting "exceptions" or favors.

Agencies do not pay out claims from their own funds - carriers hire adjusters to do that. In a few states, the agencies will have a carrier checkbook to pay small claims like windshield or towing claims - but NEVER anything third party, or liability. Claims authority is usually limited to $500, and limited to first party, nonmedical.

Franchise insurance agencies, you follow the rules and standards of the franchies. You borrow the name and get some advertising benefits. You use the franchise contracts, but your loss ratios and retention numbers are your own - and can hurt you. You don't get any profit sharing checks, usually.

Your own agency, you follow the rules and standards of your carriers, generally pay your own advertising, and your loss ratios and retention numbers can both hurt AND help you, in the form of profit sharing checks if the numbers are great.

Robin Said:

How much should an Accounting Assistant for an insurance agency make?

We Answered:

$16 to $20 per hour. Assuming you'd be working 40 hours week that would be $33,280 - $41,600 a year.