How To Start Your Own Insurance Business

Jordan Kadlec

network-security.pngAt different points in life, we all feel like we would thrive in the business and entrepreneurship sector. But, the drawback sets in when it is time to decide the right business for your personality. Moreover, we all appreciate businesses that have steady income flows more because they guarantee sustainability and continuous growth. Such are the benefits offered by an insurance business

An insurance agency offers ongoing revenue since people will always have to purchase insurance products to ensure that their coverage continues or to remain on the right side of the law. For instance, every car owner should insure their car before using it on public roads and employers are required to ensure that their employees have health coverage. This is just to point out that the society around you will always require different insurance services all year round. Other types of insurance products you can sell include; property, homeowners, annuity, life, disability and casualty insurance coverage just to mention a few. However, just like every startup, there are some preparation steps you must take before starting an insurance business. They include; 


You must be a licensed insurance agent for you to start an insurance company or agency. Though licensing laws differ among states, you must have a casualty and property insurance license or life, variable annuity and health license to be allowed to practice. To acquire licensing, you must have insurance certification that can be obtained online or through classroom instruction. 

Identify your area of specialization

Like all startup businesses, you must focus on one area to boost growth. When you concentrate on one area, you not only become an expert but also understand how to lure more customers. However, insurance agencies and companies barely offer just one product line. So, you can specialize in one product but still offer all other products. You can focus on motor vehicle insurance but still offer health, property, variable and life annuity products.

Get a business loan and insurance cover

As a startup, you will need money to get your business running. You will need office furniture, office space, different insurance coverage, office equipment and lease monies among other startup expenses. Compile a list of all the things you need and estimate your startup budget. Relying on the figures you get, hire an accountant to write a business plan that you will use to apply for a small business start-up loan. 

Start your own agency or buy a franchise

Depending on your goals, you can buy a franchise or start an independent insurance agency. Buying a franchise means working under an established insurance company and having access to any in-house financing products offered by the company. On the other hand, if you start an independent agency, you enjoy the freedom of choosing the products you sell. You are not limited to selling products from one company. 

Invest in data security

In the midst of business growth and ousting competition, you will face major setbacks such as systems hacking that can result in data theft. Some insurance like life or health coverages require personal client information that you as the insurer must protect. As such, you must invest in a reliable network security system like one offered by to keep client data from getting into the wrong hands. Your clients could sue you for breaching confidentiality of information as well as lose their trust which could be detrimental for your insurance business.

Bottom line

An insurance business can be fulfilling in the long run after it becomes well established and trusted by customers. However, it requires dedication and extra hard work to thrive. You must be competitive enough to work with and against the big names in the industry.

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