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Eleanor Said:

What's involved in starting a P & C Insurance business?

We Answered:

Well, Allstate and Nationwide are NOT going to give you a contract, unless you agree to ONLY represent them.

There are basically three different kinds of companies, from the main street agent's point of view:

Direct writers - these companies - including USAA, Amica, Geico - have "employee agents" in their office, to write business.

Captive agent companies - Nationwide, Allstate, Liberty Mutual, State Farm - these have "independent contractor" agents that have their own agency, but ONLY can sell insurance for that one company

Independent agent companies - Travelers, Progressive, Mercury, Zurich, etc - these have agents they appoint with NON exclusive contracts.

By far, the hardest part of starting a P&C agency, is getting the contract - IF you want to be an independent. It's pretty easy, if you don't mind being a captive, but then the business you drum up is owned by the company, if you ever decide to switch contracts or businesses. Whole agencies are bought and sold, JUST FOR those contracts.

As a new P&C agent, with no experience and no book of business to roll over, you're going to be very, very hard pressed to find ANYONE to give you a contract. The easiest are Progressive and Foremost, but might not be available in every state.

Many agents find it's easier to start, by either buying an agency, or buying into ownership of an agency, or working as a producer for an agency. I'd recommend this, to find out if you even LIKE the business, and can sell enough policies to support yourself.

OH, and WHEN YOU START your brokerage, you don't normally get quoting or support service from the carrier - you get the rates, and a check. YOU have to provide the support yourself, or hire an employee to do that. YOU have to buy your agency management system, which can run over $25,000 for ONE STATION, depending on which one you choose.

Claude Said:

starting a car rental Business and need pricing on the insurance on the cars we are going to purchase for rent?

We Answered:

Just contact the agent that has your coverage on your car repair business.....he should be able to find you a "garage liability" policy that will cover ALL of your activities. It will be a LOT less expensive to have the fleet insured versus each individual car.

Good luck and I hope this helps

Laurie Said:

Insurance Business Question?

We Answered:

Yes.

You can't be held liable to someone else, for breaking your own rules. Case and Statute laws apply, not your own internal "rules".