Here are some tips on how to start an Insurance Brokerage. The process was very complicated for me and I had to constantly research to understand what I needed to do. So I want to explain some things to help you expedite the process. First and Foremost: Experience.
You need experience in customer service and sales. You need to know how insurance products work, and an understanding of commercial insurance because there’s more money on the commercial side. You don’t want to go into this completely cold, don’t set yourself up for failure. You will need an Insurance license for Properties and Casualties (P&C), and/or Life and Health, you will not be able to legally sell insurance without these. Once you have that license you’re going to need an Appointment. An appointment is a contract with a company to allow you to sell their products as an agent. Some companies won’t give you an appointment unless you have a physical location. Make sure to do a cost analysis if you’re considering making appointments with certain carriers… If you’re a real startup it will take roughly 5-10k$ Errors and omissions are very important. Its a policy for your individual name that allows you to conduct your insurance operations that protects you from any errors. If you under-insure someone or input something incorrectly, you will be protected for any errors and omissions you do. Approval from the Department of Insurance (DoI). Once you have your licenses, it needs to be approved by the DoI. You will receive a license number attached to your name, this will cost around $80. If you want to start Doing Business As (DBA) your name. For example, I am Chris Costantini doing business as Adelfia Insurance. You will need a business entity’s approval. Contact the DoI for more information. You may also need a Broker Bond that you can find out with the DoI. Lastly, and MOST IMPORTANTLY, you need patience and determination. Its a very tedious game, different people take different strategies. It comes down to what strategies you want to implement and what works for you. To me, I believe insurance is a relationship game, so go out and network, build up your brand and image on social media. Some things I’ve used to assist me in marketing my brokerage are Facebook Groups and LinkedIn Groups. There are a lot of incredible insurance-based groups out there with wonderful people that are willing to answer any of your questions. Do not be afraid to ask questions. I hope this helps you on your journey to starting up your Insurance business. Contact me for any questions you have.
1 Comment
7/20/2020 01:24:29 am
I really enjoyed this blog after reading so i am very impressed and i like to say thanks for the lovely sharing of your life which you shared with us.thanks again and keep it up keep continuers.
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