Starting any type of business can prove difficult to people who are new to this type of thing. There are various details to look after in order to do everything correctly but, generally, it can all be learnt and dealt with. Information is your best friend so don’t be shy and start reading up on these details.
If you want to start an insurance business and guarantee its success, you’d be wise to stock up on a lot of information and knowledge. Certain questions such as ‘do you need insurance to drive?’, ‘how does insurance work?’, and various others can be answered once you get a hang of things.
This is a beginner’s guide to starting an insurance company, so let’s get into it!
How to Start an Insurance Business
1. Decide what type of insurance your company will offer.
Insurance companies generally specialize in one type of insurance. However, this is sometimes not true as there have been instances of insurance companies offering various types of insurance at the same time.
The difference is that usually, auto and home insurances are sold under a single roof. While life and health insurances are sold under another.
Before you even start the process of creating an insurance company, make sure you know what type of insurance you want to offer.
2. Find a suitable location for your office space.
The best possible locations for starting an insurance agency offices are usually in high-traffic areas such as city centers or big boulevards.
You will need enough space to accommodate an office for yourself, a conference room that will have one big table for 4 people minimum, a receptionist station and a fairly large waiting room.
Without any of these areas, you won’t garner a lot of success with your insurance business.
3. Make your business entity an LLC.
You should make this choice when starting an insurance company as an LLC will lower the amount of owner liabilities. Which is something that is preferred over other, different types of business entities.
It’s a fairly simple choice so make sure your business entity is an LLC. You’ll need certain certificates and to pay specific fees.
4. Check all general agent contracts.
You’ll need to contact insurance carriers that you want to represent at your insurance firm. Talk to someone who works at an agent appointment department and tell them exactly what you want.
You will need a general agent kit which will enable you to review the arrangements set forth by your carriers.
5. Recruit an assistant for help.
There isn’t a single insurance agency that was managed by only one person and brought to success. The insurance business requires a lot of time, dedication, effort, and willpower and there’s no possible way you will accomplish everything by yourself.
Hire an assistant or even two, and start dividing the tasks between all of you. These assistants will help you multitask easier, and they are quite possibly irreplaceable.
6. Start promoting your new insurance business.
There’s no way for people to find out about your insurance business if you don’t spread the word yourself. Invest in various ads such as ads on billboards, e-mail promotions, social media marketing, etc.
Advertise wherever you can, and you’ll start seeing an increase in customers fairly quickly!
Are you ready to start your insurance business? What’s the first step you’ll take?
About The Author
This article was written by Ryan Varela, the CEO of Boost Health Insurance, which provides customized and affordable health care plans for thousands of customers across the United States.