Being an Insurance Agent can be a very rewarding career and it is also a career that can easily give you the option to start your own business. Starting a business has many benefits and as an insurance agent it can be a good next step to your career. If you aren't a licensed insurance agent, it's ok with a few easy steps you can be licensed and in business.
1. Starting a business as an Insurance Agent means that you need to be licensed. You can't write insurance policies unless you are a licensed agent. The states regulate this procedure individually, but for most states, you take a class that's a few weeks long and a test you need to pass.
2. Once you have passed the test you are officially a licensed insurance agent. Now you need to decide if you would like to be an independent agent or an agent that represents one company. If you are starting your own insurance business, you may consider being an independent agent. If you are independent this means that you can write insurance for numerous insurance companies and that you retain your commissions on your book of business. If you are an agent with a specific company they normally have the rights to your books of business, meaning you get a commission for writing the policy but after that the business belongs to the company.
3. You will also need to decide where you want to work when you are finished starting your business. You can easily work form home or have a fully staffed office. Working with a fully staffed office will free up your time so that you can be out generating business. You can have employees handling the administrative tasks and even calling leads to set appointments for you. Although a fully staffed office will require additional expenses, it may be worth it in the long run.
4. Once you have made all of the necessary decisions it's time to register your business. All of the information you need can be found at both on your state's website and also at the Small Business Administration website. Once you receive your paperwork in the mail you should open a business checking account and obtain business insurance.
5. As soon as your business is registered and you have decided which company or companies you will be writing insurance for, it's time to get some clients! If you are a property casualty agent, you should consider networking with real estate agents and others in the real estate field they can bring clients your way. If you are a health and life agent, you may want to contact local businesses. There are plenty of small businesses that may not have these benefits for their employees yet.
Starting a business as an insurance agent can take time, dedication, and a lot of hard work, but it's also a extremely profitable career.
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