What to Consider Before Becoming an Independent Insurance Agent

What to Consider Before Becoming an Independent Insurance Agent

What are the requirements to become an independent insurance agent? Before taking the plunge into running your agency, what do you need to consider? These are all great questions and ones that many aspiring agents ask before they choose this career path. This article will give you an overview of what you'll need to know to start your independent insurance agency.


The first question you have to ask is whether you have the experience to go independent. Ideally, you should have worked as a captive agent for at least two years, allowing you to quickly gain the trust of new clients and insurance carriers.  



When you're planning on opening an independent insurance agency, you'll need to cover the start-up expenses while sacrificing a paycheck for the first few months. This investment can be challenging if you are not prepared, so it is essential to look closely at your financial situation. 

Not only do you have to provide capital, but you also have to contribute many hours of work to the project. Including your family members in the decision process is essential because this will impact them too. 

Management Responsibility

Once you decide to invest your time and money, you'll need to mentally prepare yourself for a few initial headaches as a newly established agency owner. You will be in charge of absolutely everything when you're just starting. Make sure you can manage all the agency's responsibilities alone because, for the first six months, you may be unable to afford to hire staff. The mandatory costs when opening an agency include hiring an accountant and a tax attorney. 

Client Acquisition

Another critical step to consider is that you will need to establish your client list from scratch. A solid, well-thought-out, and detailed business plan will make this aspect feel less daunting and give you a roadmap for success. 


Grow Your Independent Agency Bigger, Faster, and More Efficiently

When you join Affordable American Insurance, you are independent but not alone. We give you the tools to succeed, including top-rated carrier access, training in how to start and run a successful business, marketing, and cutting-edge technology. 

Contact AAI today to join our team and set your independent insurance agency up for success.