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Steve Said:

how do i start an independent insurance agency?

We Answered:

By becoming an agent and find carriers who will allow you to sell their product(s)

Darryl Said:

i would like to set up an insurance independent agency i currently have an office?

We Answered:

If you have a solid client base, it is very likely that an insurance company will be willing to give you an appointment, i.e. a contract to be able to sell their products. However, if you are in Florida or certain coastal areas getting a contract will be next to impossible. A couple of suggestions -- consider hiring an experienced agent to assist you. You will have to pay them very well but the assistance they can provide will be invaluable. Start getting together a demographic report on your clients, i.e. detailing average age, income, etc. and including it in a business plan and marketing plan so that you can be ready to approach companies. Also take the property and casualty insurance course in your state and get your license prior to approaching a company. Do your homework on which company would be best to start with.

If you would like additional information, feel free to e-mail me. I hope this helps. Good Luck

Erik Said:

Where can i find an independent insurance agency for sale?

We Answered:

http://www.businessbroker.net/State/1931…

http://www.franchiseadvantage.com/Indust…

Barry Said:

I want to open an independent insurance agency- What types of savings and checking accouns do I need?

We Answered:

You need a checking account. You can also open a savings account but it is not necessary unless you want to keep a reserve to earn some interest. Presumably you will be selling insurance of one or more companies.

As an S corporation, you can pay yourself a salary by writing a check each month and withholding federal tax, social security, and medicare. However, you must realize that this "salary" is not your personal income and it is not a business expense for the cor portion. All of the earnings of the S corporation are passed on to you whether or not they are paid as "salary" or retained in the business. Similarly, business losses are passed on to you as well. One reason for electing S status is that business losses reduce your other personal income. For the first $100,000 of corporate earnings, a C corporation has a lower tax rate than an individual. However a C corporation's dividends are taxed once again to the owners. Of course in a C corporation, your salary is actually a business expense.

Mathew Said:

What would the owner of an independent insurance agency earn with 5 million written premium a year?

We Answered:

This would depend on the product types and commission/renewal rates.

If it is all property and casualty business, the commissions and renewals are usually between 10%-15%. On $5 million written premium, the First Year Commission would be $500-$750K. If the persistency rate is 80%, the renewal would be $400-$600K, plus the commission for new business. This could put the total commission and renewal income to well over $1 million.

Out of all that income comes overhead, (employees income, business supplies, other than what the carriers supply, office rent or payment, utilities, commercial insurance, social security and worker's comp, etc.), which is estimated to be around 50-60%.

Rick Said:

I'm interested in startting my own Independent Insurance Agency. Does anyone know the steps?

We Answered:

You must provide them with a plan on how you will meet their requirements. I have some companies that only require $50,000 of premium and some that want $750,000 of premium volume. If you have a good reputation, some companies are willing to take a chance on you.

My agency just turned 5 years old and I represent 15 companies. You can do the same if you know the right people and have a good reputation.

Shannon Said:

How do I open an independent insurance agency dealing with multiple insurance companies?

We Answered:

First of all do you have your Insurance license through your state?
Assuming that you do.
You need to contact the Insurance companies that you want to represent in your agency. They will require you to fill out an application and usually someone will come out to meet you and do an interview.
Once your license is placed with carriers then you need to promote yourself!
Get a big sign, and do some advertising. You should really check with the yellow pages and see when the deadline is to get in the phone book and get that started right away as many phone books start getting the ads ready to print about 3-6 months before the book even comes out.
If you have a Chamber of Commerce in your area that is a good place also to join.

Good Luck -