New Independent Agency

[jmancuso]

Hey everyone,

I am 45 years old and have had several businesses in the past. I have a friend who is a Farmers agent and it seemed like something I could do. I took a job at a Farmers agency for a month before I realized I didn't want to be captive.

I have been reading posts on here trying to get a feel for the ropes and it seems like everyone's opinion of getting started is that it's very hard. I just want to make sure I understand what I might be getting into because it doesn't seem to difficult to me.

Please feel free to add anything I am missing.

Step one - Get "life & health" and "P&C" license.

Step two - Obtain E&O insurance. I received a quote for $250 per month based on my lack of experience.

Step three - Find an office. I have found several one room offices for $200 to $350 per month.

Step four - Get appointed. I talked with Foremost and was advised as long as I don't have a criminal background (which I don't) and have my E&O of $500K appointing should be smooth. I also spoke with Progressive and received the same info. It seems pretty easy to sign up with <benefit mall> to cover health, and life insurance companies shouldn't be too difficult to appoint with either.

Step five - start cold calling, purchase some leads, and start networking.

Step six - Done.

Am I missing something? I saw something about a surety bond. Other than that I have 12 months of expenses in the bank until I start selling some polices. I know I don't have a lot of choices in P&C but Progressive seems to be a great company. My view is this...
If I were still at Farmers I could only sell Farmers so now I will only sell Progressive for a while. Progressive does pretty much all the same stuff.

All the other appointments will come in time as I gain experience and build my book.

It seems pretty cut and dry.

Please advise...

Thanks for reading and posting!!

 

[Sales71]

Well your plan sound very well thought off. A few things you might want to add is rater system to quote your auto and home insurance. Also maybe if you can add an agency management system to input your leads and and the leads that you will be buying. look at softhawk.

Also I think with progressive you have to pay a fee everytime you run MVR...so that can add up I run MVR with all my auto quote.
I think those two companies do not require an actual office..so if you can start from home office that will save you about $400 a month and use that on buying leads or marketing. After maybe a year or so get an office.

I think you will do very will...good luck

 

[jmancuso]

Thanks sales71! Did you mean Hawksoft?

 

[TwiLight]

Usually MVR's are only charged on individuals that are not written when you due the POS/Equifax with Progressive. Good interview skills and probing for accidents and violations will lower your cost for MVRs. Also, Progressive does prefer an office location, depends on your local marketing rep. Foresters is no big deal.

Also look to Bristol West for an appointment (also a Farmers company). It has excellent rates for those with so so credit and these days that is a big thing. Farmers agents have access to this company and are selling it 90% of the time in the States that have been hard hit by the economy.

Your success with just Progressive will be limited and should not be looked at as a solution for revenue. You will need to diversify your offerings and companies. Look to your Local Big I association. many have clustering programs for Auto/Home.

Also as a Big I member you can get an agreement with agentsecure.com and can choose between 2 comp plans for commercial and personal lines and have complete ownership. They will also assist in transferring business if you can get your own contracting after a couple of years. They also offer Travelers/SAFECO/MetLife for personal lines depending on your State.

You still have a lot to do before you can make the big push.

 

[Sales71]

Thanks sales71! Did you mean Hawksoft?

Yes sorry about that its called hawksoft..I looked into it for my agency it seems like a good agency managment software. EZlynx is also a good rater for you auto insurance.

Also if you join the Big I and become a member they will have very helpful tips on the broker side.

Also you might want to work on getting your website..go to godaddy and get a cheap domain name and have one of the guys on this site help you design it.

 

[jmancuso]

Nothing here... but us chickens (post removed)

 

[buysurety]

Hey everyone,

Am I missing something? I saw something about a surety bond.

What state are you setting up the business in?

 

[mfancher]

Cold Call as much as you can. Dial and smile.