How do I Start Insurance Agency Online? This is a very common question. And if I had watched a video like this when I was first starting up my agency brokerage here, I would have probably, you know, expedited a lot of the process and the time. So I’m hoping that you get some of that as well.
When I’m making this to, you know, avoid some of the mistakes, you know, expedite that process, avoid spending hours countless hours online like I did. It was just a rough, probably six month period where I was just searching. Everyone couldn’t find anything. And I’m going to try to keep it very, very straight to the point. So let’s dive straight into it.
The first things first, there’s a major difference between an insurance company or carrier. Then there is an insurance brokerage or agency. This is commonly mistaken by customers, people, consumers. And the major difference is that and I’ll touch on it. An agency or brokerage conducts and sells insurance on behalf of those insurance companies or carriers.
So a carrier is an example would be Liberty Mutual, Nationwide Progressive a all these big carriers that have extremely deep pockets, and they’re the ones who will pay out a claim in the event of a claim, an accident or something happens, fire, car, life insurance, whatever. So we’re an agent or broker and we conduct we sell policies on behalf and get paid Commission. So this is an agency brokerage. So I won’t touch on how to start an insurance carrier company because I’ve never done that. And I can’t speak on that.
I’ve only started a brokerage and people call it company as well because we are a company essentially. So there’s a few steps that I highly recommend, and these are necessary. First of all, for the Business Structure Foundation, you need this to start an insurance agency or brokerage. First things first, I highly recommend that you have some insurance experience before launching any type of whether it’s a carrier company, agency, brokerage, whatever have some type of insurance experience, whether it’s sales, customer service, personal lines, insurance, commercial insurance, whatever you do, don’t go into it cold.
You’re going to set yourself up for failure if you don’t know what you’re doing or you’re gonna set yourself for a very bumpy, very bumpy ride.
Next thing I do think, well, no, I don’t think I know 100%. You need this in order to sell insurance as an insurance license, make sure you’re licensed in the state that you’re conducting insurance. There’s PNC property and casualty, and then there’s life and health license. So you need to have that to conduct and sell insurance legally. Step three.
Once you have that license, you need to get an appointment, which is a contract, essentially with those insurance carriers or companies that I was talking about nationwide Liberty A blah blah blah. You need to be able to have a contract with them, which basically States, Chris will be selling a policy and Progressive or somebody will be paying him a Commission. That’s that appointment and that’s that contract that allows you to sell their products. That’s a big hurdle that a lot of people run into, and I won’t dive into how to get these appointments.
That’s something you need to reach out to me directly.
And I’ll put my email below. Hit me up. I’m happy to explain there’s ways around it, and it’s very tricky to do. Long story, but I’ll dive into that later. There’s another video on it.
Another thing you need is an error is an emissions policy or what is also called professional liability insurance. Basically says an Eno quote, I’m sorry. Policy says if Chris Costantini messes up my policy or Adelphia insurance messes up my insurance policy, that we will protect his mistake if it is covered or negligent. If I’m omitted or forgot to put something or change the name or made a wrong name on somebody’s policy, it will basically cover me insurance for the insurance agents mistake that’s that next thing you need is an approval from the Department of Insurance.
You basically need to get your license approved under your name, saying, Chris can legally conduct insurance under that license number.
And I think it’s like $80 on the insurance Department of Insurance. There’s also what’s called a business entity insurance license. Insurance license. So, for example, my insurance license is Adelphia Insurance Services LLC, and I am a producer under that business entity license. So the one that’s actually selling the policy as Adelphia insurance.
The Department of Insurance
I’m just the producer or agent on that business entity license. So the business entity is the one who’s selling the insurance. You need to contact the Department of Insurance. They’re the ones that are going to be able to explain that there’s an application. I think the business entity is a little bit more expensive.
So look into that. You may need to get a broker bond as well. Typically, some carriers require, like a $10,000 broker bond. Also, check out the Department of Insurance. You can see what their requirements are for your specific state and most importantly, patience.
The first six months that I started my agency, I was completely lost, didn’t know what I was doing. Thank you to everybody who supported I’m now almost three years in, and I know I definitely know what I’m doing now, but the first six months were really rough, struggled a lot, didn’t sell a lot, was just trying to build up relationships, trying to figure out structural things like this, very, very, lots of wasted time and hopefully watch some of the videos. Guys. Hopefully some of them bring some value to you and help your process move a lot quicker if you just follow up.
I’m not just making this stuff up.
I’m doing it. And I’m saying it because I want to just give people as much value as I can and, you know, make you guys a little more successful than I am and faster than I am. So, yeah, any questions you have on the business entity type stuff or, like, starting up an actual business? Let’s say it’s not insurance. Go to legal Zoom.
Sole proprietorship business license
Get a sole proprietorship business license, LLC Corporation set that up and then you’re legally conducting business. I’m not a lawyer. So anything I say here, guys, it’s just based on my experience and what I did. I’m not telling you exactly how you should do and what type of Corporation sole proprietor. You should talk to a business lawyer or somebody who’s in a legal Zoom.
Go talk to Legal Zoom. They’ll handle everything for you. It’s super cheap, it’s easy, and they’ll help you get your stuff going. But as far as an insurance agency, those are kind of the structural things you might need. So always check with your Department of insurance and see what is needed.
And hopefully that was helpful. If you did get any value. Guys, please. I would really appreciate you giving me a like subscribe, and I’ll keep making these videos and hopefully explain some of the stuff that was unclear to me when I first started and get you on your way and shoot me an email. If you are looking for a coaching or consulting call, I’ll put my email below and you can hit me up.
I’m happy to help and jump on a quick call for you guys, and we’ll see you guys soon. Keep up the good work and everybody get after it and see you guys at the top. Peace.