So, you want to know how to start a casualty insurance agency? If you are just at the very beginning stages of this career and you are just doing the planning, there is a lot more ahead of you than renting an office space and selling policies. If you are really serious about this idea, here is what you need to do first.
Take Your State's Licensing Exams
Insurance agents in every state must be licensed and know how to start a casualty insurance agency. After all, you are going to be responsible for selling policies that protect people's lives and belongings. You cannot simply open an office space and sign people up for this or that type of insurance without first knowing what you are doing and what laws govern your daily operations! Even insurance brokers have to be licensed too, and that is an entirely different sort of insurance agent career. You will need to take one type of exam for EACH type of insurance you sell (e.g., life insurance exam, health insurance exam, car insurance exam, home insurance exam, etc.).
Choose to Broker for All Companies, or Sell Only One Company's Insurance
Insurance agents are "free agents." This means that they are able to select one insurance company and apply to to sell that company's insurance products. They can back out of selling for that company and sell for a different company, but there may be penalty fees and/or franchise fees attached to such actions. You can also choose to be an insurance broker, which sells all policies for all companies, and the job is less limiting than working as an agent for one company. You will, however, need to take an insurance broker's exam and obtain the broker's license on top of the insurance exams.
Get a Small Business Loan or Start-up Funds
If you are going to be operating an insurance agency, you are going to be owning and operating a small business. That said, you need adequate start-up funds. If you do not have funds in a savings account that you can transfer into a business savings account, look at acquiring a small business loan. The loan will help you stay in business until such a time as you have sold enough insurance policies to begin receiving your cut of the profits. You may also want to consider grants, as you will have to begin repayment of a small business loan within a month of opening the doors of your insurance agency.Share