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Scott Said:

how do i open an insurance brokerage?

We Answered:

Depending on what state you are in and their specific requirements, you will probably at least need your P & C license as an agent & a separate P & C license as a broker if you want to write excess or surplus markets (this license also usually requires a bond). You will also need a Certificate of Occupancy for your office space and in some states they also require that you obtain a Basic Business License and that you obtain a state tax registration number for use in filing Property Taxes, Annual Reports, etc. You will also need to obtain a Federal Identification Number to be able to open a bank account (and depending on the state requirements you might have to open two bank accounts--one for Premium/Escrow funds where you keep clients monies and the second one for your operating funds), report unemployment tax, pay Federal withholding taxes, etc.

The most important requirement will be for you to obtain the appointments or contracts from the insurance companies so that you are able to market and sell their products. Without a good company to give you a contract, it will be very difficult if not impossible to be successful. Having the contacts as you state is great but you what you really need are the contracts! In order to obtain the contracts, I suggest that you start on a Business Plan including a Marketing Plan, Mission Statement, SWOT analysis, etc. Once you have this done you can approach your contacts and go through the steps necessary to convince them that you want an appointment and will be able to successfully and profitably market and sell their policies.

Also FYI starting a "scratch" agency is not easy. Be prepared for 60 to 70 hour work weeks, cold calling, etc.

I hope this helps. Good Luck!

Gloria Said:

Door Hanger Marketing Ideas for a Small Business?

We Answered:

I would make the front read and put DO NOT DISTURB on the front in big letters...then in small letters put, this "Homeowner is Busy Calling XXXXX Insurance Agency to Save Money"

Then put the specifics on the back.

Good Luck!

Alicia Said:

How do I start real estate brokerage business?

We Answered:

Tell the Dept of Real Estate what name you have chosen. They will hold that name for you for 6 months as you get set up. Pay $900 a month to rent a space. You can buy desks from the Bankruptcy Court for a low price (businesses are always closing and their furniture is sold). Sign up at the Orange County Association. They will get you entered in the MLS. Then open your doors.
To protect your name, pay $10 at the Secretary of State's Office..

Jared Said:

what are the risks in insurance brokerage business?

We Answered:

Mishandling a client's insurance: not suggesting insurance that he needs, misrepresenting the client to the insurer, mishandling the client's funds, not communicating all offers for insurance, etc.

Losing insurance companies as markets. Perhaps not sending them enough business, or not the kinds they want.

Brokers can potentially get into all sorts of problems.

Erin Said:

Is buying an insurance brokerage a good business opportunity?

We Answered:

The answer depends upon the opportunity presented to you. In addition to the total cost and and how the pay off would be structured there are lots of other considerations.

Here are a few things to think about:

How long has the brokerage been in business?
What is the reputation in the community?
Is the brokerage a life insurance agency?
Or is the brokerage primarily property & casualty?
What insurance companies does the brokerage represent?
How many customers does the brokerage have?
How long will the owners stay to help with the transition?
Are there any employees? Will they stay on?
Are there any large accounts that might be lost due to the change in ownership?
Is the brokerage profitable?