auto insurance agency business plan

How to start an insurance company in 7 easy steps

Perhaps you’re a successful insurance agent ready to start a new chapter in your business. Or maybe you’re considering a career change and see potential for profits and stability in the insurance industry.

Whatever your reasons for wanting to start an insurance business, it can be a great investment. But getting an independent insurance agency off the ground takes a lot of planning and hard work – and that’s after you’ve become a licensed agent .

Let’s take a closer look at what’s involved in each step to starting a successful insurance company.

Step 1: Write a business plan

A sound insurance agency business plan is a road map for success, and it puts your insurance company on the right track. This document demonstrates your commitment to any potential stakeholders, such as investors, employees, and insurance carriers.

It also helps you:

• Avoid potential roadblocks
• Identify risks
• Determine financial needs and resources

Your business plan may be adjusted over time. Ideally, it will provide guidance long after your insurance agency is launched.

At a minimum, your business plan should:

• Introduce who’s involved in the business, and who’s responsible for executing the plan.
• Explain your plan for getting customers, and the insurance products and services you'll provide.
• Identify your target market, suppliers, and competitors.
• Describe what sets you apart from the competition.
• Analyze your risks.
• Include an initial budget that covers start-up costs and cash flow projections.

A business plan is the foundation of building a new business. It helps you secure financing and start-up capital, zero in on your market, and choose your business location.

Step 2: Choose your legal structure

How you structure your business will determine the amount of personal liability you take on. There are several structures available:

• Sole proprietorship
• Partnership
• Limited liability company (LLC)
• Corporation
• S corporation

Each structure has its own risks and benefits.

For example, a sole proprietorship is the simplest structure. But it also carries the greatest personal liability. This means that you may have to use your personal assets to settle unpaid business debts. And if you’re sued, your personal assets are also at risk. On the other hand, LLCs and corporations offer a legal distinction between you and your business entity. They are more complex and costly, but they provide protection for your personal assets in most circumstances.

Whichever structure you choose, the right business insurance can help protect your company and limit risks.

The U.S. Small Business Administration (SBA) can help you learn more about how to choose your business structure .

Step 3: Choose and register your agency’s name

Once you have the serious tasks of developing a business plan and choosing your structure out of the way, you can have a little fun.

If you’re a sole proprietor, by default the legal name of your business is your own name. But you can also choose a “doing business as” (DBA) name. This is a chance to use your creativity and pick a name that:

• Is easy to say and spell.
• Meets your state’s requirements.
• Conveys your agency's benefits.
• Is easily searchable.

But be aware – most states prohibit or restrict the use of certain words to prevent a business’s name from deceiving or misleading the public. For example, “bank” or “banking” are commonly restricted words. Check with your Secretary of State’s office to learn about your state’s specific naming restrictions.

Once you settle on a name, register it with your state's government. You’ll likely be charged a minimal registration fee.

Step 4: Get a tax ID number

The IRS requires all corporations and partnerships to use a federal employer identification number (FEIN) when filing their taxes. You’ll also need this number to open a business bank account or credit card.

If you are a sole proprietor or a single member LLC, you may use your Social Security number.

Step 5: Register your business with your state

Once you have your tax ID, you’ll need to contact your state insurance commissioner’s office. Typically you must register as a “resident business entity” for state and local tax purposes.

Your state will likely charge a registration fee and provide a checklist to make sure you’re aware of and complying with all state requirements.

Step 6: Get your business licenses and permits

Though you are a licensed agent, you may need a general business permit or license to operate legally. You can find which permits or licenses you must carry by using the SBA's Business Licenses and Permits tool .

You should also check with state and local agencies to make sure you’re in compliance with regulations.

Step 7: Purchase insurance to protect your investment

The types of insurance your insurance company will need depends on the structure and assets of your business. Independent agents already know how important it is to carry adequate liability coverage. But as a business owner, you must also consider a variety of other risks.

General liability insurance protects you from customer property damage and injuries.

Errors and omissions insurance (E&O) , also known as professional liability insurance, protects you from lawsuits related to accusations of errors or oversights. Some states even require that you have an E&O insurance policy in place to register your business.

If you buy or lease an office space, you’ll also need commercial property insurance . This will pay to repair or replace stolen, lost, or damaged business property, including your building, furniture, supplies, and office equipment. You can bundle commercial property insurance and general liability insurance in a business owner's policy (BOP) .

Cyber liability insurance protects insurance companies from the high costs of a data breach or malicious software attack. It covers expenses such as customer notification, credit monitoring, legal fees, and fines.

Finally, you will need to review your car insurance policies if you use a vehicle for business. If you buy a company-owned vehicle, you will need commercial auto insurance . If you drive your personal car for business appointments, then you may need hired and non-owned auto insurance (HNOA).

Starting your own insurance company can be a daunting task. But with hard work, you can turn your vision into a reality.

If you’ve already launched your insurance agency, or are ready to take the plunge, we’re here to help. Our licensed agents can provide expert guidance and help answer your questions to find the coverage that’s right for your business.

Compare quotes from trusted carriers with Insureon

Complete Insureon’s easy online application today to compare insurance quotes from top-rated U.S. carriers. Once you find the right policy for your small business, you can begin coverage in less than 24 hours.

When buying small business insurance, it’s important to choose reputable insurance companies. The following are some of the best providers for the most necessary and affordable types of business insurance coverage.

Brian Carlton, Contributing Writer

Brian is a contributing writer that has experience covering finance, insurance, and education. He has award-winning journalism and writing experience that covers several topics like insurance, finance, and education.

Insurance Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Insurance Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Insurance Agency Business Plan

You’ve come to the right place to create your own business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their insurance companies.

Essential Components of a Business Plan For an Insurance Agency

Below we describe what should be included in each section of a business plan for a successful insurance agency and links to a sample of each section:

• Executive Summary – In the Executive Summary, you will provide a high-level overview of your business plan. It should include your agency’s mission statement, as well as information on the products or services you offer, your target market, and your insurance agency’s goals and objectives.
• Company Overview – This section provides an in-depth company description, including information on your insurance agency’s history, ownership structure, and management team.
• Industry Analysis – Also called the Market Analysis, in this section, you will provide an overview of the industry in which your insurance agency will operate. You will discuss trends affecting the insurance industry, as well as your target market’s needs and buying habits.
• Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
• Competitive Analysis – This section will provide an overview of your competition, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your insurance agency from the competition.
• Marketing Plan – In this section, you will detail your marketing strategy, including your advertising and promotion plans. You will also discuss your pricing strategy and how you intend to position your insurance agency in the market.
• Operations Plan – This section will provide an overview of your agency’s operations, including your office location, hours of operation, and staff. You will also discuss your business processes and procedures.
• Management Team – In this section, you will provide information on your insurance agency’s management team, including their experience and qualifications.
• Financial Plan – This section will detail your insurance agency’s financial statements, including your profit and loss statement, balance sheet, and cash flow statement. It will also include information on your funding requirements and how you intend to use the funds.

Next Section: Executive Summary >

Insurance Agency Business Plan FAQs

What is an insurance agency business plan.

An insurance agency business plan is a plan to start and/or grow your insurance business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your insurance agency business plan using our Insurance Agency Business Plan Template here .

What Are the Main Types of Insurance Companies?

There are a few types of insurance agencies. Most companies provide life and health insurance for individuals and/or households. There are also agencies that specialize strictly in auto and home insurance. Other agencies focus strictly on businesses and provide a variety of liability insurance products to protect their operations. 

What Are the Main Sources of Revenue and Expenses for an Insurance Agency Business?

The primary source of revenue for insurance agencies are the fees and commissions paid by the client for the insurance products they choose.

The key expenses for an insurance agency business are the cost of purchasing the insurance, licensing, permitting, and payroll for the office staff. Other expenses are the overhead expenses for the business office, utilities, website maintenance, and any marketing or advertising fees. 

How Do You Get Funding for Your Insurance Agency Business Plan?

Insurance agency businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Other options for funding are outside investors, angel investors, and crowdfunding sources. This is true for a business plan for insurance agent or an insurance company business plan.

What are the Steps To Start an Insurance Business?

Starting an insurance business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Insurance Business Plan - The first step in starting a business is to create a detailed insurance business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your insurance business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your insurance business is in compliance with local laws.

3. Register Your Insurance Business - Once you have chosen a legal structure, the next step is to register your insurance business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your insurance business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Insurance Equipment & Supplies - In order to start your insurance business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your insurance business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful insurance business:

• How to Start an Insurance Business

Where Can I Get an Insurance Business Plan PDF?

You can download our free insurance business plan template PDF here . This is a sample insurance business plan template you can use in PDF format.

We earn commissions if you shop through the links below.  Read more

Insurance Agency

Back to All Business Ideas

How to Start an Insurance Agency

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 25, 2022 Updated on June 5, 2024

Investment range

$2,850 - $6,500

Revenue potential

$60,000 - $300,000 p.a.

Time to build

Profit potential

$54,000 - $90,000 p.a.

Industry trend

Insurance protects the things we own and the people we love, which means it’s a massive industry — worth more than a trillion dollars in the US alone. If you’re an insurance agent, you’re already profiting from it and giving your clients peace of mind, but if you start your own insurance agency you’d have a broader impact, more control and higher income. 

But before you start writing policies, you’ll need to understand the business launch process. Luckily, this step-by-step guide has you covered with all the information you need to launch a lucrative insurance agency. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an insurance agency has pros and cons to consider before deciding if it’s right for you. 

• Good Money – Get healthy commissions on insurance premiums
• Flexibility – Run your business from home
• Provide Peace of Mind – Help people protect their possessions and family
• Crowded Market – The market is saturated with insurance agencies
• Continuing Education – To meet strict education and licensing requirements

Insurance industry trends

Industry size and growth.

• Industry size and past growth – The US insurance industry was worth over $1 trillion in 2020.(( https://www.statista.com/topics/3140/insurance-industry-in-the-us/#dossierKeyfigures )) 
• Growth forecast – The US insurance industry is expected to continue to grow for the next five years. 
• Number of businesses – In 2021, 1,225,407 finance and insurance businesses were operating in the US. 
• Number of people employed – In 2021, the US finance and insurance industry employed 7,509,253 people.(( https://www.ibisworld.com/united-states/market-research-reports/finance-and-insurance-sector/ ))

Trends and challenges

Trends in the insurance industry include:

• Tech-enabled data, including data about driving, is making insurance premiums more personalized.
• AI and automation technologies are enabling faster insurance claims processing.

Challenges in the insurance industry include:

• Insurance agencies are facing pressure to digitalize their business processes, creating the need for additional investment.
• The trend toward purchasing insurance online is decreasing revenues for independent agencies, which often lack the resources for e-commerce. 

Demand hotspots

• Most popular states – The most popular states for insurance agents are Vermont, Hawaii, and Ohio.(( https://www.zippia.com/insurance-agent-jobs/best-states/ )) 
• Least popular states – The least popular states for insurance agents are New Mexico, Idaho, and Georgia. 

What kind of people work in insurance?

• Gender –   48.4% of insurance agents are female, while 51.6% are male.(( https://www.zippia.com/insurance-agent-jobs/demographics/ ))
• Average level of education – The average insurance agent has a bachelor’s degree.
• Average age – The average insurance agent in the US is 45.9 years old.

How much does it cost to start an insurance agency business?

Startup costs for an insurance agency range from $2,800 to $6,500. Costs include a computer, a website, and a marketing budget. These numbers assume that you will start your agency from home.

You’ll need to be licensed in all types of insurance. Every state has its own education and licensing requirements, so check with your state’s licensing board.

How much can you earn from an insurance agency business?

Your income will depend on the type of insurance sold. You’ll earn a commission of about 15% of the annual premium. These calculations assume that your average customer will pay $2,000 per year on various types of insurance. Your profit margin will be high when you’re working by yourself, about 90%. 

In your first year or two, you could work from home and sell 200 policies per year, bringing in $60,000 in annual revenue. This would mean $54,000 in profit, assuming that 90% margin. As you start to get referrals, sales could climb to 1000 policies a year. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to around 30%. With annual revenue of $300,000, you’d make a healthy profit of $90,000.

What barriers to entry are there?

There are a few barriers to entry for an insurance agency. Your biggest challenges will be:

• Meeting the education and licensing requirements
• The massive competition in the insurance industry

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Step 2: hone your idea.

Now that you know what’s involved in starting an insurance agency, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research insurance agencies in your area to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing an independent insurance agency that sells errors and omissions (EO) insurance, or an agency that works with a certain insurance carrier. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as life insurance or homeowner’s insurance.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

Your best bet is to become licensed in all types of insurance so that you have more revenue potential. You can offer both personal and business insurance. 

How much should you charge for insurance?

Your prices will be dependent on the premiums that the insurance carriers quote for each client. Your commission will depend on the type of insurance, but will typically be about 15%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be consumers and businesses. You should spread out your marketing to include TikTok, Instagram, Facebook, and LinkedIn. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm an Insurance Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “insurance” or “insurance agency”, boosts SEO
• Name should allow for expansion, for ex: “Apex Insurance Solutions” over “AutoShield Insurance Agency” or “Sportsman’s Insurance Group”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create an Insurance Agency Business Plan

Here are the key components of a business plan:

• Executive Summary: Provide a brief summary of your insurance agency’s mission to offer comprehensive insurance solutions and excellent customer service.
• Business Overview: Describe your insurance agency’s focus, whether it’s personal, commercial, or a mix, and emphasize the types of insurance you specialize in, like auto, home, life, or business insurance.
• Product and Services: Detail the insurance products you offer, including coverage options, policies, and any unique features or add-ons that set your agency apart.
• Market Analysis: Analyze the insurance market in your target area, including demographics, competitors, and the demand for insurance services.
• Competitive Analysis: Assess your competition in the insurance industry, highlighting their strengths and weaknesses, pricing strategies, and customer acquisition methods.
• Sales and Marketing: Explain your marketing strategies, which may involve partnerships with local businesses, digital marketing, or networking within the community.
• Management Team: Showcase the expertise and qualifications of your team, particularly in insurance sales, underwriting, claims processing, and customer relations.
• Operations Plan: Describe your agency’s daily operations, from client onboarding to policy administration and claims handling, ensuring efficiency and excellent service.
• Financial Plan: Provide financial projections, including startup costs, revenue forecasts, and profit margins, outlining your agency’s path to profitability.
• Appendix: Include additional documents such as insurance industry certifications, testimonials from satisfied clients, or case studies demonstrating successful insurance coverage.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to insurance agencies. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your insurance agency will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding an insurance agency business. 

Step 8: Apply for Insurance Business Licenses and Permits

Starting an insurance agency business requires obtaining a number of licenses and permits from local, state, and federal governments.

You’ll need an insurance broker’s license and various types of insurance agent licenses. Education and licensing requirements vary by state. You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your insurance agency business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as  Vertafore ,  EZLynx , or  Zywave , to manage your leads, sales, policies, invoicing, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Localized Sponsorships: Partner with local events, sports teams, or community organizations to sponsor their activities, gaining exposure among your target audience and establishing a trustworthy local presence.
• Educational Workshops: Host workshops or webinars on insurance-related topics, providing valuable information to potential clients and positioning your agency as an authority in the field.
• Customer Referral Program: Encourage satisfied clients to refer friends and family by implementing a referral program with incentives, such as discounts or small rewards for both the existing and new clients.
• Strategic Partnerships: Build relationships with other local businesses, such as real estate agencies or car dealerships, for mutual referrals and cross-promotions.
• Social Media Engagement: Leverage social media platforms to engage with your audience by sharing relevant content, answering queries, and participating in community discussions, showcasing your agency’s expertise.
• Online Reviews and Testimonials: Actively encourage satisfied clients to leave positive reviews on platforms like Google My Business or Yelp, enhancing your online reputation and credibility.
• Targeted Direct Mail Campaigns: Send personalized and targeted direct mail campaigns to specific demographics within your local area, emphasizing the benefits of your insurance services.
• Mobile Optimization: Ensure your online presence, including emails and website, is optimized for mobile devices, as many potential clients may access information through smartphones and tablets.
• Content Marketing: Develop high-quality, informative content through blog posts, articles, or videos that address common questions and concerns related to insurance, showcasing your agency’s expertise.
• Customer Loyalty Programs: Implement loyalty programs that reward clients for long-term relationships with your agency, fostering customer retention and positive word-of-mouth.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your insurance agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your insurance agency business could be: 

• Protect your family long-term with life insurance and annuities
• A family-run agency for all your insurance needs 
• We’ll shop for the best insurance rates for you

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an insurance agency business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in insurance agencies for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in insurance. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an insurance agency business include:

• Licensed Insurance Agents – sell insurance policies
• Customer Service Representatives – answer calls, make appointments
• Receptionist – greet customers
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run an Insurance Business – Start Making Money!

In a trillion-dollar industry, a startup insurance agency has enormous potential. Almost everyone has some type of insurance, and most people and businesses have more than one type. If you’re a licensed insurance agent or want to become one, starting a thriving insurance agency is not too difficult if you have a passion for serving customers and addressing their needs. 

You’ve done your business homework now, so it’s time to get to work ensuring your future success!

• Insurance Agency Business FAQs

An insurance agency can be very profitable. You’ll just need to invest in some marketing and serve your customers well by finding them the best products and premiums and you can be successful.

You’ll need to be licensed in the type of insurance you want to sell. Every state has its own education and licensing requirements, so check with your state’s licensing board.

To differentiate your insurance agency from competitors in the market, you can specialize in a niche, provide personalized service, highlight unique offerings, leverage technology, and build strong relationships with clients.

To build a client base for your insurance agency, define your target market, develop a strong online presence, network and build relationships, offer incentives for new clients, and leverage existing contacts to spread the word about your agency.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm an Insurance Company Name
• Create an Insurance Agency Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Insurance Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run an Insurance Business - Start Making Money!

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1. Become a licensed insurance agent

2. write a business plan, 3. choose a business structure, 4. register and license your business, 5. get business insurance, 6. form relationships with insurance companies, 7. grow your client base.

Starting an insurance agency is a lot like starting any business . You’ll need to choose a business structure, register and license your business, get insurance and more.

But you’ll also need to become a licensed insurance agent and learn how to navigate a highly regulated field.

Here’s how to get started.

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Tell us where you're at in your business journey, and we'll direct you to the experience that fits.

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You can get an insurance agent license in a matter of weeks or months, depending on the requirements in your state. Here are the steps to follow:

Learn about your state’s licensing process. The National Insurance Producer Registry or your state’s branch of the Independent Insurance Agents and Brokers of America can help you understand those specific requirements.

Decide what type of insurance to sell. You can be licensed to sell several different “lines of authority” or types of insurance. The most extensive lines of authority include:

Accident and health or sickness.

The names of these lines of authority may differ in your state. You can be licensed to sell multiple lines of authority. Life and health are often offered as one package, as are property and casualty.

In general, most types of business insurance are property or casualty policies. With a property and casualty license, you can sell personal and commercial insurance . Most agents choose to specialize in one or the other, though.

Take a pre-licensing class. Your coursework should focus on the type of insurance you choose to specialize in. Courses can be done in person or online in most states.

Schedule your licensing exam. These are usually administered at testing centers run by third-party testing companies, which may immediately inform you of the results.

Apply for your license. Submit your licensing application to your state’s governing body. You’ll need to provide personal information, such as your Social Security number, date of birth and residency information, and pay any applicable fees. If your application is approved, you’ll be able to sell insurance products.

If you’re new to selling insurance, you may want to get some experience working for an insurance company or another brokerage before venturing out on your own.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Your business plan outlines what you want your business to look like and how you plan to get there. The process of writing it should force you to answer complex questions, like what unique value you’ll offer customers and how much money you’ll need to get started.

» MORE: NerdWallet's picks for the best business plan software

Your business structure determines how your business profits are taxed and how your personal and business assets are kept separate, among other things.

There’s also an insurance-specific question you’ll need to answer: Whether you want your insurance agency to work with one specific insurer or with many different providers.

Captive agents (agents who work with a particular insurance company) can benefit from brand recognition and don’t have to convince insurers to work with them. But, on the other hand, they can only sell a limited suite of insurance policies. For example, State Farm works with a network of independent contractor agents who run their agencies but only sell State Farm products.

Many other insurance agency owners are independent agents, selling products from multiple insurance companies. Independent agents might have to work harder to establish and market their brand to customers and insurers, but they can start relationships with many insurance providers.

Before running your business, you’ll need to register with your state, typically with the secretary of state’s office.

Most insurance businesses will probably need to apply for an employer identification number from the IRS. With an EIN, you can open a business checking account .

As part of this process, make sure to obtain a business license, a sales tax permit and any other documents your state or city requires.

Your business entity may also need a license from your state's insurance department. Check your state’s requirements to find out what you need.

» MORE: Everything you need to do to start a business

As an insurance agent, you already know how important it is for your customers to be fully insured. Get business insurance to protect your business assets.

Most insurance companies are likely to need professional liability insurance and general liability insurance . Depending on your agency’s size, location and day-to-day activities, you may also need commercial auto insurance, workers’ compensation insurance and other types of business insurance.

If you’re an independent agent, you’ll need to apply to work with any insurance companies whose products you want to sell. If they approve your application, they’ll grant you an appointment to sell their policies.

It can be challenging to start relationships with insurance companies directly without having several years of experience and a client base.

Joining a professional association, like the Independent Insurance Agents and Brokers of America, or an agent network like Smart Choice, can help you access insurance providers to sell their policies. These groups may also provide marketing materials, discounts on your business insurance policies, and other resources.

If you choose to start an independent agency, you may have to hustle for your first few clients. Start by joining your local Chamber of Commerce, attending networking events and advertising in your local market.

Having an online presence is essential, too. Make sure your website clearly outlines what kinds of insurance you sell and the customers you serve. Information about how to contact you should be easy to find.

If you start an agency affiliated with a particular insurance company, you might get referrals as customers seek out agents near them. However, you’ll probably need to do local marketing too.

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Launch Your New Insurance Agency With This Business Plan Template

Whether you're a brand new agent or one with several decades of experience, the idea of opening a new insurance agency probably seems daunting—where do you start?

One of the first things you’ll need to do is come up with a business plan for your insurance agency. After all, you can walk into a bank or a potential investor’s office looking for funding, but you won’t get very far unless you have a robust insurance agency business plan that proves you’re on the right track toward turning a profit in the near future.

Follow the steps below when building out your insurance business plan to maximize your chances of securing funding and getting your new agency off to a strong start.

7 Steps To Build Your Insurance Agency Business Plan

1. develop your executive and business summaries..

In business plan terms, the executive summary is the driving force behind your other decisions. It should explain why you’re starting your agency. The business summary is similar, but it should narrow down your “why” into a list of “hows.”

Ask yourself:

• Why do you want to open an agency?
• What types of insurance do you wish to sell?
• What do you hope to accomplish?
• What return on investment do you expect to receive?
• How are you going to generate demand and ensure supply for your service?

Jot your answers down so you can refer back to them as you move forward.

2. Decide whether you want to be a captive agent or an independent agent.

Many large agencies, such as Allstate and Farmers, work with captive agents who can only sell insurance for that specific provider. Independent agents, on the other hand, can sell insurance for multiple providers, but they get locked out of working with the big-name captive carriers who only work with captive agents. (Read more about captive agents here and get a seasoned agent’s POV on both types of agents here. )

Before you can nail down the details of the rest of your business plan, you’ll have to make a choice between these two options.

3. Do a market analysis.

Though it might seem like a tedious process, conducting a thorough market analysis is crucial to your success. Analyzing your local market—including the backgrounds, shopping behaviors, and preferences of your target customers—gives you the insights you’ll need to attract these folks to your business.

Your market analysis will look a little different depending on whether you prefer to be a captive or an independent agent. The state you live in is another factor that will affect your analysis—in fact, it may even influence your decision to be captive or independent.

Take a close look at the demographics of your region.

• How many homeowners live in your state?
• What’s the average insurance premium per home?
• How many people live in each home, on average?
• How many drivers live in your state?
• How many vehicles does the average household own?
• Do you live in an area with an aging population ?
• How many families live in your region?
• What insurance carriers do locals in your state gravitate toward?
• In your area, what might be some successful strategies for retaining clients (rather than just acquiring them)?

These questions are all important, but pay particular attention to the last one. If you open an agency without a plan for client retention, you’re going to struggle. And, unfortunately, this is one of the most overlooked aspects of an insurance agency business plan.

4. Identify where you’ll find your first clients.

It’s one thing to know there are X number of potential clients living in your state, but it’s quite another to have a plan that will help you reach out to those folks and land your first policy sales.

Some investors will require a list of leads before they’ll even consider funding your agency. Even if it’s not a requirement, it’s always a good idea to have a pipeline ready to go. This is where getting set-up for purchasing warm leads from EverQuote can put you in a great position for success.

Plus, tackling this step before you even open your doors will help you better understand the costs you’ll incur—and therefore how much startup funding you will need.

You might also consider other options, such as placing ads in local newspapers, going to networking events, investing in digital marketing, sponsoring local Little League teams, or asking for referrals.

5. Create a financial plan.

Many new agencies fail because their owners overlooked something critical during startup. Do your best to look at your financial plans from every angle:

• Where will you find leads, and how much will they cost?
• What is your advertising budget?
• Does this budget line up with the going rates of local newspapers, billboards, or online ads?
• Do you plan to have 1099 employees or W2 employees selling insurance for your agency?
• How will you decide on a commission and benefits structure for these employees?
• What retention and loss ratios (for clients and employees) do you expect based on the numbers of other agencies in your area?
• How will you handle the delay between policy renewals and income hitting your bank account?
• If there are X amount of people shopping for insurance in your area, what percentage of those people are in a niche you can serve?
• From that percentage of potential clients, how many do you think you can successfully land?
• If you sell policies to these customers, how much will you earn from their premiums?
• How do your projected profits compare to your expected advertising costs, the cost to buy leads, office rent, and other expenses?

Take detailed notes of your calculations, and try to run the numbers a few different ways to obtain a conservative outcome, a likely outcome, and a “best case scenario.”

6. Draw up a formal business plan using a proven format.

Your notes will be incredibly valuable as you move forward, but you’ll need a way to present them clearly and concisely in a way that looks attractive to investors.

Loan officers and investors don’t want to read long-form essays detailing your business background and your ideas for the future. Keep your format simple and straightforward, with clear sections that answer the questions investors will want to know.

We recommend a format similar to the following:

Executive Summary Overall mission Primary objectives Keys to success Financial plans Profit forecast for at least three years Business Summary Business overview Summary of startup costs Funding you’ll require Company executives/ownership Services Services you provide Market Analysis Overall business analysis Details of your competition Buying patterns of your competition Your planned buying patterns Market segmentation and analysis Target market strategies Include details for each market segment Strategy Your competitive edge Marketing strategy Sales strategy Yearly sales projections Key milestones Management Your plan for finding staff Financial Plan Funding you have accepted Funding you will need Detailed startup costs Calculations for your break-even point Projected profit Yearly profit Gross and net yearly profit Anticipated losses, if any Cash flow patterns Plans for balance sheet Calculations of important business ratios

7. Revise and adjust your plan over time.

You may not secure funding for your agency immediately. Even if you do, you’ll likely find that your real world numbers don’t match up exactly with your calculated projections. Plus, carriers frequently change their underwriting policies, and the economy itself is always in a state of flux.

Keep your business plan current by updating the information anytime circumstances change.

Start your journey with a full lead pipeline from EverQuote.

One of the scariest parts about starting a new agency is not being certain where and when you’ll be able to start making sales.

Skip the fear and the unknown and go right to making sales with warm real-time leads from EverQuote. Whether you’re still trying to find startup funding or your doors are already open, you can always boost your business and maximize your chances of a steady income by working with EverQuote.

Connect with us today.

Topics: Featured , Insurance Agency Growth

About the Author Chris Durling, VP of P&C Sales

Chris Durling is a visionary leader in P&C insurance sales and distribution, with over 10 years of experience in the industry.

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Insurance Agency Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 3,000 entrepreneurs and business owners create business plans to start and grow their insurance agencies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an insurance agency business plan template step-by-step so you can create your plan today.

Download our Ultimate Insurance Business Plan Template here >

What is an Insurance Agency Business Plan?

A business plan provides a snapshot of your insurance agency as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Insurance Agency

If you’re looking to start an insurance agency or grow your existing insurance agency you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your insurance agency in order to improve your chances of success. Your insurance agency business plan is a living document that should be updated annually as your agency grows and changes.

Source of Funding for Insurance Agencies

With regards to funding, the main sources of funding for an insurance agency are personal savings, credit cards, bank loans, and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate the business.

The second most common form of funding for an insurance agency is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund an insurance agency unless it is based on a unique, scalable technology.

Finish Your Business Plan Today!

How to write a business plan for an insurance agency.

Your insurance agency business plan should include 10 sections as follows:

Executive Summary

• Company Overview

Industry Analysis

Customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of insurance agency you are operating and the status; for example, are you a startup, do you have an insurance agency that you would like to grow, or are you operating multiple insurance agency locations already.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the insurance agency industry. Discuss the type of insurance agency you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of insurance business you are operating.

For example, you might operate one of the following types:

• Direct Writer / Captive : this type of insurance agency only sells one insurance company’s products – like Allstate or State Farm
• Independent Insurance Agent : this type of insurance agency is privately-owned, and sells policies with may different insurance companies

In addition to explaining the type of insurance agency you operate, the Company Analysis section of your own business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new location openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

In your industry analysis, you need to provide an overview of the insurance business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the insurance industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards weather-related policy purchases, it would be helpful to ensure your plans call for flood insurance options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your insurance company business plan:

• How big is the insurance industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key insurance carriers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your insurance agency. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

The customer analysis section of your insurance agency business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, households, businesses, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of insurance agency you operate. Clearly baby boomers would want different pricing and product options, and would respond to different marketing promotions than recent college graduates.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most insurance businesses primarily serve customers living in their same geographic region, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Insurance Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Insurance Business Plan Template you can finish your plan in just 8 hours or less!

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other insurance agencies.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes self pay and public (Medicare, Medicaid in the case of health insurance) insurance or directly working with an insurance carrier. You need to mention such competition to show you understand that not everyone who purchases insurance does so through an insurance agency.

With regards to direct competition, you want to detail the other insurance agencies with which you compete. Most likely, your direct competitors will be insurance agencies located in your geographic region.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What insurance products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior insurance agency products/services?
• Will you provide insurance agency products that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an insurance agency, your marketing plan should include the following:

Product : in the product section you should reiterate the type of insurance agency that you documented in your Company Analysis. Then, detail the specific products/services you will be offering. For example, in addition to P&C insurance, will you also offer life insurance?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your insurance agency. Document your location and mention how the location will impact your success. For example, is your insurance agency located next to the Department of Motor Vehicles, or a heavily populated office building, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your insurance agency marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your insurance agency’s front store extra appealing to attract passing customers
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations (e.g., auto dealerships or car rental stores)
• Local radio advertising
• Banner ads at local venues

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your insurance agency such as serving customers, procuring relationships with insurance carriers, negotiating with repair shops, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your 500th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

To demonstrate your insurance agency’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in an insurance agency. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in insurance agencies and/or successfully running small businesses.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you acquire 20 new customers per month or 50? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your insurance agency location and/or website, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a successful insurance agency:

• Location build-out including design fees, construction, etc.
• Marketing expenses
• Website development
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Free Insurance Business Plan Template

You can download our insurance business plan PDF .

Insurance Business Plan Summary

Putting together a business plan for your insurance business will improve your company’s chances of success. The process of developing your plan will help you better understand the insurance market, your competition, and your customers. You will also gain a marketing plan to better attract and serve customers, an operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Growthink’s Ultimate Insurance Business Plan Template allows you to quickly and easily complete your Insurance Business Plan.  

Additional Resources for Insurance Agents

• How to Write a Marketing Plan for an Insurance Agency
• How to Start an Insurance Agency
• Association for Independent Agents
• Business License Requirements By State For Insurance Agencies

Don’t you wish there was a faster, easier way to finish your Insurance business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing services .

Other Helpful Business Plan Articles & Templates

How To Write an Insurance Company Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for insurance companies that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every insurance company owner should include in their business plan.

Download the Ultimate Insurance Business Plan Template

What is an Insurance Company Business Plan?

An insurance company business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an Insurance Company Business Plan?

An insurance company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Insurance Company Business Plan

The following are the key components of a successful insurance company business plan:

Executive Summary

The executive summary of an insurance company business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your insurance company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your insurance company , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your insurance company firm, mention this.

You will also include information about your chosen insurance company business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of an insurance company business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the insurance industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of an insurance company may include individuals, families, small businesses, and large corporations.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or insurance company services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your insurance company may have:

• Specialized industry knowledge
• Proven track record
• Strong customer relationships
• Robust product offerings
• Innovative solutions

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. 
• Or, you may promote your insurance company business via word of mouth.

Operations Plan

This part of your insurance company business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an insurance company include reaching $X in sales. Other examples include expanding to a new geographic market, launching a new product or service line, or signing on new major customers.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific insurance industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Insurance Company

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Insurance Company

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup insurance company business.

Sample Cash Flow Statement for a Startup Insurance Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your insurance company . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it. All in all, a business plan is a key to the success of any business.  

Finish Your Insurance Business Plan in 1 Day!

Other helpful articles.

How To Write an Insurance Agency Business Plan + Template

Insurance Agency Business Plan Guide + Free Example

July 6, 2023

Adam Hoeksema

The insurance agency industry offers substantial potential for growth and success. While some may perceive managing an insurance agency as a simple task, involving only policy sales and customer interactions, it actually requires careful planning and precise execution to thrive. Therefore, having a well-structured business plan is crucial for achieving success in this industry.

Our primary expertise lies in creating insurance agency financial projections . However, we understand that some of our clients seek comprehensive business plans. That's why we've taken the initiative to delve into this topic and cover the following aspects in our comprehensive insurance agency business plan guide and sample plan: 

Why write a business plan for an insurance agency?

What to include in an insurance agency business plan, insurance agency business plan outline, what type of insurance agency to start, how to analyze the competition for an insurance agency, how to create financial projections for an insurance agency, example insurance agency business plan, insurance agency business plan faqs.

Creating a well-structured business plan is crucial for insurance agency owners seeking financial support from investors, banks, or financial institutions. This plan should encompass a comprehensive evaluation of the insurance market, a clear and strategic approach, and a thoughtful assessment of potential risks and rewards. By showcasing your in-depth understanding of the insurance industry, your growth strategies, and your capability to navigate challenges, a robust business plan increases the likelihood of attracting the necessary funding for your insurance agency venture.

An insurance agency business plan should present persuasive reasons why clients will choose your agency's services, demonstrate why you or your team are the ideal operators for the insurance agency, and provide a robust financial projection to assure potential investors and lenders of the investment's viability. Below is a comprehensive outline of our complimentary insurance agency business plan template.

We suggest the following sections for your Insurance Agency business plan:

Executive Summary

Company Description

Market Analysis

Product and Service Offerings

Marketing Plan & Customer Acquisition

Operating Plan

Financial Plan

Choosing the right type of insurance agency will depend on your interests, expertise, and the market demand in your area. Here are some common types of insurance agencies you could consider starting:

General Insurance Agency:

A general insurance agency deals with a wide range of insurance products, including auto insurance, home insurance, business insurance, liability insurance, and more. This type of agency offers a diverse portfolio of insurance products to cater to a broad customer base.

Specialized Insurance Agency:

Instead of offering a wide range of insurance products, you can focus on a specific niche or industry. For example, you could start a health insurance agency, life insurance agency, or a commercial property insurance agency. Specializing can allow you to become an expert in a particular area and build strong relationships with clients in that niche.

Independent Insurance Agency:

Independent agencies work with multiple insurance carriers, giving them the flexibility to offer a variety of insurance products from different companies. This model allows you to compare coverage options and find the best policies for your clients' needs.

Captive Insurance Agency:

A captive agency represents a single insurance company and sells only that company's policies. While you have less flexibility in terms of product offerings, captive agencies often benefit from the support and training provided by the parent insurance company.

Online Insurance Agency:

With the rise of digital technology, you could consider starting an online insurance agency. This model allows you to reach a broader audience and provide insurance services through a website or app. It can be a cost-effective way to start and operate an agency.

Insurance Brokerage Firm:

Instead of focusing on selling insurance policies directly to clients, you could start an insurance brokerage firm. As a broker, you would act as an intermediary between clients and insurance companies, helping clients find the best coverage at competitive rates.

Before deciding on the type of insurance agency to start, conduct thorough market research to assess the demand for different types of insurance in your area. Also, consider your own skills, knowledge, and passion for specific insurance sectors. Having a clear understanding of your target market and your own expertise will guide you in making the right decision for your insurance agency. Additionally, make sure to comply with all legal and licensing requirements for insurance agencies in your region.

When it comes to analyzing the competition in the insurance agency industry, there are a few valuable tools you can use, with one of the most useful being Ahrefs.

Ahrefs is a powerful SEO tool that enables you to research and dissect your competitor insurance agencies' online presence. By inputting a competitor's website into Ahrefs, you can gain valuable insights into their organic traffic and the specific keywords responsible for driving that traffic.  For example, in Indianapolis we can see that Carson Insurance Agency is receiving roughly 100 monthly visitors from organic traffic.  

The tool provides valuable data on your competitor's organic traffic and highlights the keywords that are leading visitors to their website.

By understanding the keywords and SEO strategies employed by your insurance agency competitors, you can tailor your content and marketing strategies to effectively compete in the same areas or identify niche segments that may be underserved. This knowledge can help enhance your insurance agency's online visibility, attract more customers through search engines, and position your business for success in the competitive insurance industry.

SWOT Analysis: While not a digital tool SWOT analysis can be incredibly helpful in analyzing competition. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. By comparing these aspects between your agency and your competitors, you can identify areas where you might have a competitive edge or areas where you need to improve. Many business websites and educational institutions offer free SWOT analysis templates and guides that can be easily adapted for an insurance agency.

In the insurance agency industry, financial projections are influenced by distinct factors such as client acquisition rates, policy pricing, seasonal demand, and operational expenses. Using an insurance agency financial projection template can simplify the process and boost your confidence. However, accurate financial projections serve a greater purpose than just showcasing revenue potential; they paint a clear picture of the path to profitability and the achievement of your insurance business goals. By considering these crucial elements, you can create a solid financial plan that guides your agency towards success and ensures the realization of your objectives.

To create precise projections, follow these key steps:

Estimate startup costs for your insurance agency, including office space, technology infrastructure, licensing and certifications, marketing, and initial staff training.

Forecast revenue based on projected client acquisition rates, average policy premiums, and potential growth in your customer base.

Project ongoing operational costs , such as staff salaries, rent, technology maintenance, marketing expenses, and administrative overhead.

Estimate costs related to providing insurance policies and services, such as commission payouts to agents, underwriting expenses, and claims management.

Calculate the capital needed to launch and sustain your insurance agency, covering initial expenses and providing working capital for continued growth.

While financial projections are essential for your insurance agency's business plan, seek guidance from experienced professionals in the insurance industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about insurance market trends and evolving customer preferences to ensure your financial plan aligns with your goals and positions your insurance agency for long-term success.

Explore our comprehensive Insurance Agency Business Plan below. For your convenience, a downloadable Google Doc version of this insurance agency business plan template is available, allowing you to personalize and tailor it to your specific needs. Additionally, a helpful video walkthrough is provided, guiding you through the process of customizing the business plan to perfectly align with your unique insurance agency concept.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

Briefly introduce the company's background, products or services, and target market.

      -  Example: SecureRide Auto Insurance Agency is a leading provider of auto insurance solutions in Atlanta, Georgia. We specialize in offering comprehensive coverage options tailored to meet the unique needs of drivers in the area.

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example: Establish SecureRide as the go-to auto insurance agency in Atlanta, capturing a significant market share and achieving a 40% increase in policyholders within the first year. 

        - Example: Long-term: Expand our presence in Georgia and neighboring states while maintaining a high level of customer satisfaction.

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example: At SecureRide, our mission is to provide reliable and affordable auto insurance coverage to drivers in Atlanta. We are committed to ensuring our customers have the peace of mind they deserve on the road by delivering exceptional service and tailored insurance solutions.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example: Delivering competitive pricing and flexible coverage options tailored to our customer's needs. We prioritize superior customer service, ensuring responsiveness, transparency, and personalized support

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: SecureRide Auto Insurance Agency was established by Mark and Emily Roberts, who have a combined experience of over 20 years in the insurance industry. Mark brings expertise in risk assessment and underwriting, while Emily has a strong background in sales and customer relations.

   2.2. Legal Structure

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: SecureRide Auto Insurance Agency operates as a limited liability corporation (LLC)

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: SecureRide sets itself apart by offering customizable auto insurance coverage tailored to each client's specific needs. Our advanced technology allows for quick and accurate quotes, efficient claims processing, and a seamless customer experience.

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: Focuses on serving the residents of Atlanta, Georgia, and its surrounding areas. Our primary target market includes drivers of all ages and backgrounds who seek reliable, affordable, and comprehensive auto insurance coverage.

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The auto insurance industry in Atlanta, Georgia, is a thriving and competitive market, driven by the high number of vehicles on the road and the state's insurance requirements. With a growing population and an increasing emphasis on vehicle safety, the demand for reliable auto insurance coverage is expected to continue rising.

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: Atlanta Auto Insurance Company: A national insurance company with a branch in Atlanta, providing a wide range of auto insurance policies. 

        - Example: Indirect competitors:  EasyInsure Online: An online insurance platform that allows customers to compare and purchase auto insurance policies from various providers. 

3.3. Target Market Analysis

Explores the company's target customers, their demographics, preferences, and pain points.

        - Example: SecureRide’s target market in Atlanta, Georgia consists of young professionals, families and homeowners, commuters and business professionals, high-value vehicle owners, and retirees and seniors. 

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: SecureRide can seize market opportunities by leveraging digital marketing strategies to reach a broader audience, offering innovative coverage options such as usage-based insurance, and establishing partnerships with local car dealerships and auto repair shops. 

• Example 1: Conduct a survey among Atlanta residents to assess their knowledge of auto insurance providers and their satisfaction with existing options. This will help identify gaps in the market and potential opportunities for SecureRide. (e.g., 65% of surveyed residents are unaware of any specialized auto insurance agencies in Atlanta, indicating a potential market niche)
• Example 2: Analyze the market share and customer satisfaction ratings of established auto insurance companies in Atlanta to understand the competitive landscape and areas for differentiation. (e.g., Company X holds a 30% market share but receives consistently low customer ratings for claims handling, suggesting an opportunity for SecureRide to excel in customer service)
• Example 3: Keyword search volume to see growth in demand or specific types of boutique insurance needs

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: SecureRide offers a comprehensive range of auto insurance coverage options, including liability insurance, collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, and additional specialized coverage for high-value vehicles or specific driver profiles.

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: SecureRide adopts a competitive pricing strategy based on market analysis, offering affordable premiums and flexible payment options to ensure accessibility and value for customers.

4.3. Sales Strategy

  Explains how the company plans to generate sales and build

customer relationships.

        - Example: SecureRide will leverage a multi-channel sales approach, utilizing a combination of online platforms, direct sales efforts, and strategic partnerships with car dealerships and automotive service providers.

 Describes the methods through which the company will deliver its products or services to customers.

        - Example: SecureRide primarily operates through its physical office location in Atlanta, Georgia. Additionally, the company will have an online presence through a user-friendly website and mobile app allowing customers to conveniently access information, request quotes, and manage their policies.

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example: SecureRide will implement targeted digital advertising campaigns, including search engine marketing, social media advertising, and online display ads, to increase brand visibility and attract potential customers.

• Example 1: Develop partnerships with local car dealerships and auto repair shops to offer exclusive discounts on insurance policies to their customers. This can generate initial traction and referrals. (e.g., SecureRide establishes partnerships with three prominent car dealerships, resulting in 50 policy sales within the first month)
• Example 2: Launch a targeted digital marketing campaign that emphasizes SecureRide's competitive rates, personalized customer service, and quick claims processing. This can attract potential customers seeking a more customer-centric auto insurance experience. (e.g., The campaign generates 500 leads and converts 20% of them into policyholders within the first quarter)
• Example 3: Build a social following or Youtube channel that simplifies auto insurance for everyday people that can serve as a possible customer base when the business launches.

5. Operations and Management

5.1. facility location and layout.

 Specify the agency’s physical business location and refers to the internal arrangement and organization of the space.

        - Example: SecureRide is strategically located in a prime area of Atlanta, Georgia, ensuring easy accessibility for clients and proximity to major transportation routes. The facility is designed with a customer-centric approach, providing a welcoming reception area, private consultation rooms, and a well-organized layout that promotes efficient workflow and privacy for sensitive discussions

5.2. Staffing and Expertise: 

Ensures the agency can effectively serve its clients and provide comprehensive insurance solutions.

        - Example: SecureRide has a team of experienced insurance professionals who possess in-depth knowledge of the auto insurance industry, including underwriting, claims processing, risk assessment, and customer service. 

5.3. Customer Service:

 Involves the process of providing support to policyholders and potential customers throughout their insurance journey.

        - Example: Customer satisfaction and retention are key objectives for SecureRide. The agency strives to deliver personalized assistance to clients, addressing their insurance needs, offering guidance in policy selection, and providing prompt and efficient claims assistance. 

• Example: SecureRide's founding team brings a wealth of industry experience, ensuring a deep understanding of the auto insurance landscape and customer needs. For example, Mark Roberts, the CEO, has over 15 years of experience in the insurance industry, specializing in auto insurance. Sarah Roberts, the COO, has a background in risk management and claims handling, ensuring efficient operations and superior customer service.

5.4. Technology and Systems:

Refers to the utilization of advanced technological tools, software systems, and digital platforms .

        - Example: SecureRide leverages advanced insurance management systems and technology solutions to streamline operations, enhance efficiency, and improve customer experience. These systems enable seamless policy management, online quoting and applications, secure data storage, claims processing, and effective communication with clients. 

All of the unique Insurance Agency projections you see here were generated using ProjectionHub’s Insurance Agency Facility Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

  Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to breakdown how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of SecureRide. We estimate needing around $190,000 to cover our startup costs as well as cover losses until we become cash flow positive. $90,000 will come from personal investment & a small equity investment from another partner, and then we are seeking a $100,000 business loan.

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  SecureRide projects $359,000 in revenue in the first year. The company anticipates steady growth in revenue over the initial five-year period.

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: SecureRide's expenses include property lease, accounting, advertising, commissions, utilities, and software costs.

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: SecureRide’s expects to achieve profitability within the first few years of operation.

 Outlines the company's projected cash inflows and outflows.

        - Example: SecureRide cash flow projections account for fluctuations & onboarding additional agents.

  Determines the point at which the company's revenue equals its expenses.

        - Example: SecureRide anticipates reaching its break-even point in year 3 but the industry is very low margin.

Watch how to create financial projections for your Insurance Agency

Key Point  4 

• Example 1: Benchmark SecureRide's projected premium rates against industry averages and adjust accordingly to remain competitive while ensuring profitability. (e.g., SecureRide's projected average premium rate aligns with the industry average, indicating a realistic pricing strategy)
• Example 2: Conduct a thorough analysis of loss ratios and claim settlement ratios in the auto insurance industry to estimate SecureRide's potential expenses for claims payouts. (e.g., SecureRide projects a 70% claim settlement ratio, based on industry benchmarks, to ensure adequate reserves for potential claims)
• Example 3: Evaluate potential risks and their financial implications, such as increased competition, supply chain disruptions, or changing market conditions. (e.g., A 5% increase in the price of coffee beans could lead to a 2% decrease in CozyCorner's net profit margin)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

• Example: SecureRide's founders demonstrate their commitment to the business by investing a significant portion of their personal funds into the company's initial capital. They are also willing to personally guarantee loans and secure necessary insurance licenses and certifications, showcasing their dedication and belief in SecureRide's success.

How do I start an insurance agency?

To start an insurance agency, you'll need to obtain the necessary licenses and certifications, develop relationships with insurance carriers, determine your target market and insurance specialties, establish an office or online presence, create a marketing strategy, and hire and train staff.

How can I attract clients to my insurance agency?

To attract clients, develop a strong online presence and professional website, network with other professionals and businesses in related industries, offer valuable content through blog posts or educational resources, utilize social media platforms, and provide exceptional customer service.

What types of insurance should my agency offer?

The types of insurance your agency should offer may vary based on your target market and expertise. Consider offering common insurance lines such as auto, home, life, health, business, and specialty coverages based on the specific needs of your clients.

How can I stay updated with the latest insurance trends and regulations?

Stay updated with the latest insurance trends and regulations by joining industry associations, attending relevant conferences or seminars, participating in continuing education programs, subscribing to industry publications, and actively engaging with insurance carriers and professional networks.

How can I build trust and credibility as an insurance agency?

Build trust and credibility by providing transparent and reliable insurance information, maintaining strong relationships with reputable insurance carriers, offering personalized coverage recommendations, being responsive to client needs and inquiries, and being actively involved in the community you serve.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Insurance Agency Business Plan Template

Written by Dave Lavinsky

Writing a Successful Business Plan For Your Insurance Agency + Template

If you’re looking to start or grow an insurance agency , you need a business plan. Your plan will outline your business goals and strategies, and how you plan on achieving them. It will also detail the amount of funding you need, and if needed, present a case to investors and lenders regarding why they should invest in your business.

In this article, we’ll explain why you should invest the time and energy into creating an insurance agency business plan, and provide you with an insurance agency business plan template that includes an overview of what should be included in each section. Download the Ultimate Insurance Agency Business Plan Template here >

Why Write a Business Plan For an Insurance Agency ?

There are many reasons to write a business plan for an insurance agency , even if you’re not looking for funding. A business plan can help you see potential pitfalls in your business strategy, as well as identify opportunities you may not have considered. It can also help you track your progress and adjust your plans as needed.

That said, if you are looking for funding, a business plan is essential. Investors and lenders want to see that you have a solid understanding of your industry, your customers, and your competition. They also want to know that you have a realistic view of your financial situation and how much money you’ll need to get started.

How To Write a Business Plan For an Insurance Agency  

While every business plan is different, there are 10 essential components that all insurance agency business plans should include:

Executive Summary

Company description, industry analysis, customer analysis, competitor analysis, marketing plan, operations plan, management team, financial plan.

Keep in mind that you’ll need to tailor this information to your specific type of insurance agency , but these 10 components should be included in every plan.

The executive summary is the first section of your business plan, but it’s often written last. This is because it provides an overview of the entire document.

In the executive summary, briefly explain what your business does, your business goals, and how you plan on achieving them. You should also include a brief overview of your financial situation, including how much money you’ll need to get started.

For organizational purposes, you could create headings for each main section of your business plan to highlight the key takeaways.

For example, your insurance agency executive summary might look something like this:

Company Overview

[Insert Company Introduction / Short Summary]

Business Goals

[Insert Business Goals & How You Plan To Achieve Them]

Industry Overview

[Insert Industry Statistics on the Size of Your Market]

Competition

[Insert Overview of Competitors & Your Competitive Advantage]

[Insert Information About The Marketing Strategies You Will Use To Attract Clients/Customers]

Financial Overview

You can add and/or remove sections as needed, but these are the basics that should be included in every executive summary.

The next section of your insurance agency business plan is the company description, where you’ll provide an overview of your business.

Include information about your:

• Company History & Accomplishments To Date

Mission Statement and/or Company Values

With regards to the company overview, here you will document the type of insurance agency you operate. For example, there are several types of insurance agencies such as:

• Life insurance agency
• Health insurance agency
• Auto insurance agency
• Homeowners insurance agency
• Commercial Insurance Agency

For example, an insurance agency company description might look something like this:

We are an X type of insurance agency .

Company History

If an existing company: Since launching, our team has served X customers and generated $Y in revenue.

If startup: I conceived [company name] on this date. Since that time, we have developed the company logo, found potential space, etc. 

This is just an example, but your company description should give potential investors a clear idea of who you are, what you do, and why you’re the best at what you do.

The next section of your business plan is the industry analysis. In this section, you’ll need to provide an overview of the industry you’re in, as well as any trends or changes that might impact your business.

Questions you will want to answer include:

• What is the overall size of the insurance industry?
• How is the industry growing or changing?
• What are the major trends affecting the insurance industry?
• Who are the major players in the insurance industry?

For example, your industry analysis might look something like this:

The size of the insurance industry is $XX billion.

It is currently growing at an annual rate of XX% and is expected to reach $XX billion by the year 20XX. The insurance industry has been booming in recent years.

Major trends affecting the industry are larger companies consolidating and the rise of digital marketing and e-commerce.

How We Fit Into The Industry

This is just an example, but your industry analysis should give potential investors a clear idea of the overall industry, and how your company fits into that industry.

The next section of your insurance agency business plan is the customer analysis. In this section, you’ll need to provide an overview of who your target customers are and what their needs are.

• Who are your target customers?
• What are their needs?
• How do they interact with your industry?
• How do they make purchasing decisions?

You want a thorough understanding of your target customers to provide them with the best possible products and/or services. Oftentimes, you will want to include the specific demographics of your target market, such as age, gender, income, etc., but you’ll also want to highlight the psychographics, such as their interests, lifestyles, and values.

This information will help you better understand your target market and how to reach them.

For example, your customer analysis might look something like this:

Target Market & Demographics

The demographic (age, gender, location, income, etc.) profile of our target insurance agency customer is as follows: 

– Age: 25-60

– Gender: Male/Female

– Location: Anywhere in the United States

– Income: $50,000-$250,000

– Education: College degree or higher

Psychographics

Our core customer interests are as follows: 

– Saving money: They are always looking for ways to save money, whether it’s on their insurance premiums or other household expenses.

– Convenience: They value convenience and want to be able to do business with companies that make their lives easier.

In summary, your customer analysis should give potential investors a clear idea of who your target market is and how you reach them.

The next section of your business plan is the competitor analysis. In this section, you’ll need to provide an overview of who your major competitors are and their strengths and weaknesses.

• Who are your major competitors?
• What are their strengths and weaknesses?
• How do they compare to you?

You want to make sure that you have a clear understanding of your competition so that you can position yourself in the market. Creating a SWOT Analysis (strengths, weaknesses, opportunities, threats) for each of your major competitors helps you do this. 

For example, your competitor analysis might look something like this:

Major Competitors

XYZ Company is our major competitor. Its offerings include this, this and this. Its strengths include XYZ, and its weaknesses include XYZ.

Competitive Advantage

Your competitor analysis should give potential lenders and investors a clear idea of who your major competitors are and how you compare to them.

The next section of your business plan is the marketing plan. In this section, you’ll need to provide an overview of your marketing strategy and how you plan on executing it.

Specifically, you will document your “4 Ps” as follows:

• Products/Services : Here is where you’ll document your product/service offerings.
• Price : Detail your pricing strategy here.
• Place : Document where customers will find you and whether you will use distribution channels (e.g., partnerships) to reach them.
• Promotion : Here you will document how you will reach your target customers. For instance, insurance agencies often reach new customers via promotional tactics including online advertising, direct mail, and personal selling.

For example, your marketing plan might look something like this:

Products/Services

We offer the following products/services: 

We will use a premium pricing strategy to establish ourselves as the highest quality brand.

We will serve customers directly and through a partnership with XYZ company.

As you can see, your marketing plan should give potential investors a clear idea of your marketing objectives, strategies, and tactics.

The next section of your business plan is the operations plan. In this section, you’ll need to provide an overview of your company’s day-to-day operations and how they will be structured.

• What are your company’s daily operations?
• How are your company’s operations structured?
• Who is responsible for each task?

Your operations plan should be detailed and concise. You want to make sure that potential investors have a clear understanding of your company’s day-to-day operations and how they are structured.

You will also include information regarding your long-term goals for your operations and how you plan on achieving them.

For example, your operations plan might look something like this:

Daily Operations

Our company’s daily operations include XYZ.

Operational Structure

Our company is structured as follows:

• Department 1
• Department 2
• Department 3

Each department is responsible for XYZ tasks.

Long-Term Goals

Our long-term goals for our operations are to achieve the following over the next five years.

Date 1: Goal 1

Date 2: Goal 2

Date 3: Goal 3

Date 4: Goal 4

Your operations plan should give readers a clear idea of your company’s day-to-day operations, how they are structured, and your long-term goals for the company.

The next section of your business plan is the management team. In this section, you’ll need to provide an overview of your management team and their experience.

• Who is on your management team?
• What are their qualifications?
• What is their experience?

Your management team ideally includes individuals who are experts in their respective fields. You want to make sure that lenders and investors have a clear understanding of your management team’s qualifications and experience, and feel they can execute on your plan.

For example, your management team might look something like this:

Our management team is comprised of the following X individuals with the following experience.

Team Member 1: 

Team member 1’s qualifications and experience include XYZ.

Team Member 2: 

Your management team should give potential lenders and investors a clear idea of who is on your team and how their qualifications and experience will help your company succeed.

The final core section of your business plan is the financial plan. In this section, you’ll need to provide an overview of your company’s financials.

• What are your company’s projected revenues?
• What are your company’s projected expenses?
• What is your company’s projected growth rate?
• How much funding do you need and for what purposes? For example, most startup insurance agencies need outside funding for pre-launch activities such as licenses, office space, and marketing initiatives.

Your financial plan should give potential investors a clear understanding of your company’s financials. While you may include a summary of this information in this section, you will include full financial statements in the appendix of your business plan.

For example, your financial plan might look something like this:

Our company’s projected revenues over the next five years are $XYZ.

Expenses & Net Income

Our company’s projected expenses and net income over the next five years are $XYZ.

Uses of Funding

This is just an example, but your financial plan should give potential investors a clear idea of your company’s financial projections.

The final section of your business plan is the appendix. In this section, you’ll need to provide any additional information that was not included in the previous sections.

This may include items such as:

• Full financial statements
• Resumes of key management team members
• Letters of reference
• Articles or press releases
• Marketing materials
• Product information
• Any other relevant information

By including this information in the appendix, you are allowing potential investors and lenders to learn more about your company.

In summary, writing an insurance agency business plan is a vital step in the process of starting and/or growing your own business.

A business plan will give you a roadmap to follow. It can also help you attract investors and partners.

By following the tips outlined in this article, you can be sure that your business plan will be effective and help you achieve your goals.  

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Crafting an Effective Insurance Agency Business Plan

If you're an independent insurance agent, you know that success doesn't happen by chance. It requires strategic planning and a clear roadmap for the future. That's where an insurance agency business plan comes into play. 

In this guide, we'll explore what a business plan is, why it's essential, and how to create one tailored to your home insurance agency.

At a glance:

• Crafting a well-defined insurance agency business plan provides strategic direction and goal-setting for success.
• A comprehensive business plan allows for adaptability in an ever-evolving industry.
• Defining your brand, researching funding options, and staying compliant with regulations, are the ingredients that can transform your business plan into an effective tool for growth.

Benefits of having a business plan

Having a solid roadmap is like holding a compass in a dense forest. It not only guides you on how to become a successful insurance agency, but also ensures you stay on course.

Strategic direction

So let’s continue that analogy: you’re on a road trip without a map, compass, or GPS. You might eventually reach your destination, but it would be a long and uncertain journey. Similarly, running an insurance agency without a business plan is like traveling without a guide. A well-crafted plan provides a clear path and helps you stay focused on your goals.

Goal setting

Setting realistic and achievable goals is vital for any business. Your insurance agency business plan acts as a compass, allowing you to establish clear objectives. Whether you want to increase your client base, revenue, or expand your services, a business plan helps you chart the course.

Investor confidence

If you find yourself in a place to seek external funding, whether from investors or lenders, a comprehensive business plan is a must. It demonstrates that you've thought through your business strategy, increasing your chances of securing financial support.

Adaptability

The insurance industry is never stagnant, and as such adaptability is key. A business plan isn't set in stone; it's a living document that can be adjusted as circumstances change. If done correctly, it allows you to stay flexible and make informed decisions as market trends shift.

Key components of an insurance agency business plan

Your business plan is the document that transforms your vision into a tangible reality, ensuring your journey as an independent insurance agent is not only successful but prosperous too. 

Let’s explore the key components of an effective business plan, including the executive summary, company overview and more. 

Executive summary

The executive summary serves as the elevator pitch for your entire business plan. It's designed to capture the reader's attention and give them a quick, compelling overview of your insurance agency. You'll want to concisely highlight your agency's mission, vision, and goals. Think of it as distilling your agency's essence into a few powerful sentences. It's an invitation for the reader to learn more about your agency's journey.

Company overview

The company overview is your opportunity to introduce your insurance agency in detail. It's where you set the stage for the rest of your business plan. In this section, you’ll want to dive into the history of your agency, including its founding story, location(s), and size. You should also describe every type of insurance product you offer and provide a snapshot of what makes your agency unique.

Industry analysis

The industry analysis puts your industry knowledge to good use. It's all about understanding the broader insurance market, including its trends, challenges, and opportunities. In this section, you'll research and present data and insights into the insurance industry. Discuss market trends, regulatory changes, and any challenges that could impact your independent agency. Identifying opportunities within the industry allows you to position your agency effectively to take advantage of them.

Customer analysis

Understanding your target market is essential for tailoring your services and marketing efforts effectively. Create detailed buyer personas that encompass their needs, preferences, and pain points. This information is the foundation for developing products and services that resonate with your audience.

Competitive analysis

Knowing your competition is about gaining insights into their strengths and weaknesses. When performing your market analysis, or market research, be sure to look at factors like their market share, marketing strategy, pricing models, and customer service practices. Understanding how you stack up against the competition will help you develop a winning strategy that sets your agency apart.

Marketing plan

Your marketing plan is the strategic playbook for how you'll attract and retain clients. Specify your marketing channels, both online and offline; outline your budget and set measurable goals. Whether it's through digital advertising, content marketing, or print advertising, your marketing plan should maximize your independent insurance agency's reach and impact.

Operations plan

The operations plan is the behind-the-scenes blueprint for how your independent agency runs day-to-day. Detail your team structure, office setup, and technology requirements. It's about ensuring smooth workflow and efficient service delivery. This section gives a clear picture of how your agency operates on a daily basis.

Management team

Your management team is the engine that drives your agency. Introduce the key members of your management team and highlight their expertise. Explain how their skills and experiences contribute to the agency's success. 

Financial plan

The financial plan is the heart of your business plan. It's where you demonstrate that your agency is not just a vision but a financially viable venture. For any enterprise, including insurance agencies, it’s important to provide detailed financial projections in your business plan, including income statements, balance sheets, and cash flow statements. Set clear financial goals and explain how you intend to achieve them.

Tips for creating an effective insurance agency business plan

Creating an insurance agency business plan is akin to crafting that roadmap we talked about earlier. But here's the twist—this isn't just any road; it's twisting and on an ever-changing landscape. To navigate it successfully, you need more than just directions; you need insider tips and tricks.

Define your brand

Your brand is more than just a logo; it's who you are. Define your brand identity, including your mission statement, core values, and unique selling proposition. A strong brand will set you apart in a crowded market.

Research funding options

If you need capital to start or expand your agency, explore different funding options, which could include personal savings, loans, or investors. Your business plan should outline your funding needs and how you intend to secure the necessary capital.

Apply for licenses

Ensure that you comply with all regulatory requirements in your area. This includes obtaining the necessary licenses and insurance policies to operate legally. Failing to do so could jeopardize your agency's success.

Set goals and establish metrics

Your business plan should include specific, measurable, and time-bound goals. Track key performance indicators to measure your progress and adjust your strategy accordingly. Regularly reviewing and updating your plan keeps you on the path to success.

A strategic roadmap for success

For an independent insurance agency, a well-crafted business plan is not simply a document; it's a dynamic tool that provides strategic direction, fosters adaptability, and instills investor confidence. By defining your brand, understanding your market, and detailing your operational and financial strategies, your insurance agency business plan becomes the compass guiding you through the complexities of the industry. 

With clear goals, a solid management team, and a proactive approach to change, your agency can navigate the insurance industry effectively, ensuring not only agency survival but also sustainable growth

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About the Author

Alyssa Little | Senior Content Strategist

Alyssa is the Senior Content Strategist at Openly, collaborating with industry thought leaders to provide insightful and informative content in the home insurance space. With over 15 years experience in content marketing strategy, copywriting, and editing, Alyssa has refined her expertise through her work at such companies as Gartner, Nike, and Trupanion. Alyssa holds a BA in History from the University of Puget Sound and an MA in Museum Studies from Newcastle University.

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• Sample Business Plans
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Insurance Agent Business Plan

If you have an aptitude for convincing people and can identify what insurance works for different customers, then an insurance agency business might work for you.

An insurance agency is not only profitable, but also requires lesser skills to get started. But at the same time, it attracts a lot of competition. Moreover, it is also a work that involves a lot of responsibility for managing insurance portfolios properly.

You can do all of the above and more smoothly, with the help of an insurance agent business plan .

If you are planning to be an insurance agent, the first thing you will need is a business plan. Use our sample insurance agent business plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan , spend as much time as you can reading through some samples of insurance & finance-related business .

Industry Overview

The insurance industry stood at a massive value of 1.28 trillion dollars in 2020 and isn’t about to slow down any time soon.

Life and home insurance make up the majority of the market share. The growth of the industry can be attributed to the increase in buying houses and getting the same insured.

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Things to Consider Before Writing an Insurance Agent business plan

Choose your legal structure.

Different legal structures come with different pros and cons. Also, each legal structure solves different purposes for a business. From the taxes, you’ll pay to the liability on your assets, the legal structure of your business decides everything.

Hence, you should go through all of your options and pick the one that fits your business needs the best.

Build brand identity and image

Having a brand identity that makes you memorable to your customers is important. Constant marketing and branding efforts can help you achieve that.

Moreover, your brand image should give your customers a sense of reliability. It is of utmost importance to your business.

Get your licenses and permits

Figuring out what licenses and permits you need as per the laws of your country and state is very important before getting started in the insurance industry.

But at the same time, keeping track of all the legal requirements can be difficult. Hence, it is a good practice to have a checklist at hand before you get started.

Look into your funding requirements

The cost of setting up an insurance company depends upon the location and size of your business. Hence, look into what would be your financial requirements to set up your firm and if you’ll need any funds or not.

There are several funding options like angel investors, bank loans, etc. You can pick the option that works best for you.

Chalking out Your Business Plan

Reading sample business plans will give you a good idea of your aim. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample insurance agent business plan for you to get a good idea about how a perfect insurance agent business plan should look like and what details you will need to include in your stunning business plan.

Insurance Agent Business Plan Outline

This is the standard insurance agent business plan outline which will cover all important sections that you should include in your business plan.

• Keys to Success
• 3 Year profit forecast
• Startup Cost
• Funding Required
• Company Ownership
• Competition and Buying Patterns
• Market Analysis
• Target Market Segment Strategy
• Competitive Edge
• Marketing Strategy
• Sales Forecast
• Sales Yearly
• Personnel Plan
• Startup Funding
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample insurance agent business plan into your business plan and modify the required information and download your insurance agent business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

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Download a sample insurance agent business plan

Need help writing your business plan from scratch? Here you go;  download our free insurance agent business plan pdf  to start.

It’s a modern business plan template specifically designed for your insurance agent business. Use the example business plan as a guide for writing your own.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Agency Performance Partners

Posted on February 13, 2023 by Camille Maraguinot

What is your insurance agency business plan ? Do you have one? Of course you do, but do you know how to execute it? Most agency owners have a plan, but does that include the execution stage? The part where you have assigned tasks for your employees to complete to help retain and grow your business? 

Imagine you have a front door and a back door. The goal is that the front door stays wide open, but the back door stays shut. Closed tight. 

Many agents focus on keeping the front door open and forget that the back door is open too. Sometimes they are losing more business than what is coming in, so your growth plan must include BOTH! 

So when you hear the word GROWTH and   Insurance Agency Business Plan you should be thinking of both. Service is ALWAYS easier than sales, and if you don’t force the sales, no one will ever step out of their comfort zone to sell. How do we get there? A lot of questions should be rolling around in your head. Here is how!

Outbound Call Guidelines

Outbound calls are an important aspect of agency growth. But to do outbound calls, they have to be planned. Talk to your team about strategies for outbound calling. What time of day is best? 

Adjust it to where it works best for each team member. Block times according to availability. Have someone take an hour in the morning while the other answers service calls and the other in the afternoon, and switch it the next day, so a different person is calling in the morning. 

Make it a requirement, not an option. It doesn’t always just have to be the salespeople, either. There was an agency that had their service team do this as well, and when they got a lead, they just passed it to the sales team (but you should give them an incentive for a lead passed or sold, as they got them on the phone and passed the call.) 

Leave an open day for a catch-up, and allow them to use the day they prefer, BUT the team has to agree as the schedule is team-based.

“You will never find time for anything. You must make it.” – Charles Buxton

Time Blocking Example: Note Mondays and Fridays may need to be off days!!

YOUR BIGGEST ASSET is your CUSTOMERS. So WHY are we cold calling or paying for leads????? 

Use the book you have to grow, these calls are warm calls to people you already have a relationship with. Use it. Call and build MORE rapport and get all of their business, not just some of it!

Cross Selling

First, run lists for Cross Sales. There are an extensive amount of cross-sales you can do from your current book of business. THIS IS WHERE YOU START! 

• Auto no Home
• Home no Auto
• Home and Auto no Umbrella
• Commercial policy with no personal lines policies

With these, you may have plenty of outbound calls for staff. Use time blocking to do these outbound calls, ask staff to keep track and report the number of calls they are doing per week (don’t do it per day, some days they may not do any), but in a week, they should be able to do quite a few. 

Make a certain number of outbound calls required per week. Let’s say you decide 5 a day is fair. Making 25 calls a week is required.

Require staff to set dates for ALL quotes they do not sell. Set this for 5 months (for 6-month auto) and 11 months for 1-year auto or home policies) from the date, it was originally quoted. 

Call the customer to see if they are still happy with the current carrier/agent/agency. Let them know you know the renewal may be coming up. They need to know you care about them and their policy and that you did not forget about them.  

This is WOW Customer service and a perfect way to win over new clients.

Script:   Agent: Hello Jane, this is XXX from XYZ Agency. We currently have your auto policy here at the agency, and I reviewed it for discounts. Do you rent or own your home? 

• Answer A: Own, that is great; where is the home insurance? I just wanted to make you aware you can save $XXX a year by having your auto and home together with our agency. It will also give you peace of mind that all your insurance is in one place. I would love to quote it, and any other policy needs you to have to see if we can find more discounts and save you money. I would like to ask you a couple of questions. (Ask only the necessary, use websites like Zillow for house info.)
• Answer B: Rent, that’s great. Where is your renter’s insurance? I just wanted you to know that we can save you money by having those together. It will also give you peace of mind that you can call one place for questions and concerns. We have a great customer service team that is always here to help!

Sometimes clients leave. It happens, but are they expecting you to call them and invite them back? Probably not, so why not start now? 

Run a list of those policies that were canceled in the last year. Use that list to call customers 5 months or 9 months after they leave (depending on the policy.) 

Script: Agent: Hello Jane, this is XXXX from XYZ Agency. We used to have your insurance, I wanted to call and make sure you are satisfied with your new agent. I hope they are taking great care of you! We have changed some of our processes, and we wanted to follow up and update you with those changes and see if we can requote your insurance and “win you back”! We would love to redeem ourselves and show you our Wow customer service.

• Answer A: If NO, I understand now is not a good time. Can I set up a time that would work better for you?
• Answer B: Sure, Great I will just take a few minutes of your time, ask questions, thank the client, and give an expectation of when you will reach back out with a quote, even better set up an appointment

“Life is Growth and Growth Demands Change” -Virend Singh/Verusha Singh

Are leads worth the money? It depends. Are you starting in the right place? Once cross-sells, xdates, and winbacks are handled, and you have someone in your office doing outbound calls on those, then you can purchase leads. 

Keep track of the leads! A lot of lead companies send leads to more than one agency. There is a strategy to those leads. You MUST call the lead immediately to even have a chance to bind.  

Even if it is to call and introduce yourself, you have to build trust and rapport. 

Script: Hello, my name is XXX from XYZ agency. I see that you are interested in XXX insurance. Let me ask you a couple of questions, it will take about 5 minutes. OR TEXT them. This is a new strategy and one that WORKS! Text Script: Hi, I am XXX from XYZ Agency. I see you are looking for XXX insurance. I am texting so I can get the information I need from you at YOUR convenience. Can I call you now? 

• Answer A: If NO, say great, when would be a good time, you may need to call after hours, but if it gets the sale you need to make sure you mention that you are doing a one-time thing calling after hours because you want to take care of the client, but in the future, there will be self-service options they can use. (Determine whether your staff will do this. Usually, the producer will
• Answer B: Sure, Great I will just take a few minutes of your time, ask questions, thank the client and give an expectation of when you will reach back out with a quote. Even better, set up an appointment

How does retention work in your Insurance Agency Business Plan ? If you do not have a team member or a team focused on retention alone, you are missing out. Your clients need to know your agency cares and that they aren’t just a number. Do birthday calls, claims follow-up calls, and, most importantly, policy review calls.

Birthday Call Script: Hello, this is XXX from XYZ Agency. I was calling you today to say “HAPPY BIRTHDAY”, We hope you are having a wonderful day!

Claims call script:  hello, this is xxx from xyz agency. i was calling you today to, first and foremost, make sure you are ok. i see in the system that you had an accident yesterday. is everyone ok listen  i was just calling to check-in. has the insurance company reached out to you yet if they have not, they will be soon. if you don’t hear from them by 3 pm give me a call back at xxx-xxx-xxxx..

You can find way more ideas, retention, and content in our agency school .

Yearly Retention Review Calls

Retention calls are a bit more difficult. You must review the policy BEFORE calling. APP has a checklist you can use to review those policies and have everything ready before you call. A courtesy call is always a popular item for clients. 

How many insurance companies actually call? I know that sparks fear in many agents, but we have had huge success with agencies making these calls. A once-a-year call from your agent may put them at ease and make them want to stay because no one else is doing it. 

You don’t always have to call at the renewal if you are worried about them shopping. You can do it 90 days before. You are not trying to discuss price as much as trying to look for discounts and accuracy. Since the pandemic, many things have changed, and we need to ensure our clients’ insurance keeps up with their lifestyles. 

Your insurance agency business plan needs to have many aspects to promote growth in your agency. It isn’t all just about those purchased leads and your producers, it encompasses ALL of your staff. 

They all play a very big role in your insurance agency business plan designed for growth, but it isn’t only growing from new sales but it also grows by retaining as many policies as possible. Remember to keep the back door closed and the front door open. 

Have staff that specializes in the front door (new sales) and have other staff members focused on keeping the back door shut (retention.) Work on making processes and procedures to accomplish your goal have processes everyone follows so your agency does everything the same way. I

It will make the agency look more professional even to clients. Be on the lookout, APP will have 10 processes agencies can’t live without, these will help get you started on your way to a ridiculously amazing agency!

Find our course on Retention here . Retention is a very important aspect of the insurance agency’s business plan and growth. Don’t leave it out!

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How to Create an Insurance Agency Business Plan

All companies need a solid business plan. A business plan gets you off on the right foot, creates a blueprint for your success, and can help you secure outside funding from investors and financial institutions if you need it.

For insurance agencies, many insurance carriers will require you to submit a business plan before they partner with you. Unfamiliar with the process? Here are the basic steps to create an insurance agency business plan.

As a leading Insurance Marketing Organization (IMO), Good Life Insurance Associates (GLIA) provides a full range of insurance products, services and tools to support your individual clients’ wants and needs. Learn More

1. Write an Executive Summary

All business plans start with a strong Executive Summary. This is a relatively small section that serves as the introduction to your insurance agency.

The Executive Summary should serve as the guiding force of your insurance agency. It can include things such as your mission statement and why you’re opening your agency—if you’re a startup. If your company has had past successes, you can detail these in your Executive Summary as well.

This section should also include your areas of specialty, the opportunity in the market, your plan for capitalizing on the opportunity, and how you plan to separate yourself from the competition.

2. Describe Your Company

In this section, you’ll dive deeper into the key aspects of the business. You’ll highlight what makes your insurance agency special. You’ll also want to outline the general structure of your business, such as whether you’re a limited partnership, a general partnership or a sole proprietorship.

Next, outline your company’s history—or your personal history if your company is new. Then, describe how your insurance agency will fill a demand in the market.

End the section with a short analysis of how your company will earn a profit. This part can include a full analysis of your market so you can show how you’ll delineate yourself from other insurance agencies.

Within this company description section, you can also discuss the structure of your organization. This should include the owners of the company and their background as well as the critical decision makers and their pertinent skills.

3. Outline Your Products

This section will describe the products and/or services that your insurance agency will offer. You should break down in detail not just the areas you’ll cover but the costs and revenue that you anticipate for each.

For example, you’ll want to include a detailed breakdown of renters insurance, auto insurance, homeowners insurance, life insurance and any other products you plan to offer. Show a projection for each insurance category and the value that you’ll deliver for that category.

It’s important that you fully describe all the basics of each insurance category in this section. Assume that the person who will be reading your business plan will not be fully familiar with what you do.

You shouldn’t get too technical with these categories, so you don’t confuse the reader of the document. Avoid buzzwords that the industry uses, and go with the most basic descriptions you can provide. It’s important that your insurance agency business plan is easy to read and understand.

4. Communicate Your Strategy for Sales and Marketing

Any good business plan will describe in detail what the plan is to market and sell the products being offered. This section of your business plan should describe your strategy for reaching customers and then selling them insurance. You should detail your plan for generating and nurturing leads from first contact through final sale.

This plan should include the channels you use to reach this audience. For instance, do you plan on using traditional print media, social media, email, content marketing or some combination of all of the above?

Once you’ve detailed your marketing plan, it’s important to outline how you’ll close deals. This should include not only your internal strategy in terms of personnel and how you’ll sell, but offers, pricing and value propositions that should be attractive to customers.

5. Detail Your Financials

The final section of an insurance agency business plan will describe one of the most important aspects of any business: your financials. Starting and running any business requires money. This part of the business plan will describe how you’ll obtain that money to get your business off the ground.

Many investors and/or financial institutions will focus heavily on this section of your business plan when they’re making a decision about whether to loan you money or invest in your business.

This section should include a cashflow statement, profit-and-loss statement, sales forecast and balance sheet. If your insurance agency is a startup, you should include projections for all of these, with data and facts to back up your projections.

You could boost your case by providing an analysis of your agency’s break-even mark, which will include how much you need to earn in revenue to make a profit. This section should also include what money you’re bringing to the table to fund your insurance agency, including any personal money or other outside funding you’re using.

The financials section can be highly technical, so you may want to seek the assistance of a certified public accountant when preparing some of these documents.

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It’s common sense to have full insurance coverage. And it’s good business sense to have a complete business plan for your insurance related business. These free sample business plans will help you get starting writing a business plan for your business.

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Insurance agency business plan template + PDF

This guide introduces an AI Business Plan Generator template, meticulously designed for entrepreneurs looking to start or grow their insurance agency. It's crucial to highlight that the names and financial projections included in this example are purely hypothetical, aimed at showcasing the strategic planning process. These examples are specifically crafted to demonstrate how you can tailor your own AI-generated Insurance Agency Business Plan to navigate the unique challenges and leverage the opportunities within your insurance venture.

To ensure easy customization, we provide an 'Insurance Agency Business Plan PDF' for download. This document is essential for entrepreneurs committed to developing a robust and successful strategy for initiating or expanding their insurance agency. The 'AI Business Plan Generator' serves as a comprehensive resource, offering critical insights into the insurance industry. It equips you with the necessary tools for the effective management and growth of your insurance agency business.

How this insurance agency business plan sample was created

Develop your personalized insurance agency business plan effortlessly with our AI Business Plan Generator. Just click 'Generate your business plan' and answer a series of specific questions about your insurance agency venture. Our advanced AI technology will process your information to create a business plan that aligns perfectly with your insurance agency's objectives and requirements. This efficient and fast procedure typically concludes in just 5-10 minutes, producing a comprehensive and neatly structured plan. Our system allows you to customize and perfect your strategy, ensuring the final plan accurately reflects your unique vision for your insurance agency. Upon completion, your plan is ready for download, providing a clear, concise blueprint for initiating and expanding your insurance agency. Utilize our AI business plan generator, designed specifically for insurance agency businesses, to enhance your strategic planning.

Insurance agency business plan sample

Executive summary, business description, market research and analysis, swot analysis.

• Organizational Structure and Management Team

Products or Services

Marketing and sales strategy, operations plan, financial projections, risk analysis.

TrustShield Insurance Agency, situated in the heart of Texas' burgeoning economy, emerges as a dynamic force within the insurance industry, poised to deliver personalized risk management solutions to individuals, families, and small to medium-sized businesses. Our diverse offering encompassing auto, home, life, business, health, and liability insurance is carefully tailored to meet the multifaceted needs of our clients, ensuring a broad marketplace appeal and a robust growth trajectory.

Since our inception in 2018, we have consistently strived to build a service-driven agency, one that transcends traditional transactional interactions in favor of fostering enduring client relationships. Our mission— "To shield your tomorrow, today" , is embodied in every facet of our operations, committing us to the financial security of our customers and their peace of mind.

Our strategic positioning within the vibrant Austin area, notable for its economic growth and demographic diversity, offers us a significant advantage. The entrepreneurial spirit of the locale presents us with a steady stream of burgeoning enterprises requiring commercial insurance, while the residential community forms a bedrock for our personal insurance lines.

TrustShield operates as a Limited Liability Company (LLC), offering the benefit of reduced individual liability while allowing us to remain nimble and responsive to market shifts. Our experienced management team, helmed by CEO John Harper, is our most crucial asset, bringing over 15 years of rich insurance expertise to the agency. With the support of CFO Alicia Meyers, COO Samantha Clark, CMO Raj Patel, and Director of Sales Emma Thompson, we're spearheading a fresh approach to insurance—one that's driven by both professional insight and technological innovation.

The competitive landscape presents both challenges and opportunities. Despite the presence of well-established players like SecureHorizon Insurance Brokers and SafeguardRisk Insurance Partners, TrustShield distinguishes itself through exceptional customer service, an advanced digital footprint, and a profound understanding of modern risks including the ascent of digital threats and environmental considerations.

Our operational workflow thrives on efficiency and quality control, ensuring service delivery issues are swiftly identified and rectified. Backed by state-of-the-art facilities and equipment, TrustShield is well-placed to satisfy current operational requirements and expand according to planned growth. Advanced cybersecurity measures and diligent regulatory compliance underscore our commitment to operational excellence and client trust.

From a financial perspective, we exhibit a promising outlook, with our sales forecast projecting an increase from $500,000 in Year 1 to $1,300,000 by Year 5. This steady growth is supported by our prudent financial management practices and a clear-eyed approach to risk assessment and mitigation. Our break-even analysis, conservative cash flow strategies, and robust asset management plans indicate not just financial health but a keen readiness for forthcoming opportunities.

Marketing and sales strategies remain aggressive yet discerning, leveraging digital campaigns, community networking, and strategic partnerships to reach target markets. We understand the value of an interconnected approach, utilizing every tool from SEO to local sponsorships to cast a wide net for client acquisition.

Risk is an ever-present element in business, and TrustShield is well-versed in its identification, mitigation, and contingency planning. Our proactive stance—bolstered by comprehensive insurance coverage and strict legal adherence—serves as both a safeguard and a strategic advantage.

In conclusion, TrustShield Insurance Agency is on a clear path to cementing its presence and expanding its influence within the insurance arena. Our agile structure, comprehensive offerings, and dedicated team are perfectly aligned to capitalize on market dynamics and drive the business to new heights of success and customer satisfaction.

TrustShield Insurance Agency, proudly based in the vibrant and economically diverse city of Austin, Texas, stands as a beacon of reliability and assurance in the ever-evolving insurance industry. Our business operates within a sector that is crucial for providing individuals and organizations with financial protection against the range of risks that can arise in both personal and commercial spheres. As modern life becomes increasingly complex and interconnected, the demand for comprehensive and tailored insurance solutions continues to grow. TrustShield Insurance Agency is poised to meet this demand with expertise, innovation, and a commitment to customer service.

Established in 2018, TrustShield was born out of a recognized need for more personalized insurance experiences. Our founders, a group of industry specialists with combined decades of expertise, observed a gap in the market for an agency that not only offered a broad array of insurance products but also delivered them with a human touch that only a dedicated local agency can provide. TrustShield was created to bridge this gap, aiming to develop long-lasting relationships with clients through unwavering trust and impeccable service.

Our mission, "To shield your tomorrow, today," encapsulates our purpose and our promise. We are dedicated to empowering our clients by offering protection for their assets, businesses, and livelihoods against unforeseen circumstances. We remain steadfast in our resolve to provide peace of mind through custom-tailored insurance policies that are as unique as the individuals and businesses we serve.

Legally organized as a Limited Liability Company (LLC), TrustShield offers the flexibility and protection that best suits our operations and growth plans. This structure allows us to combine the operational advantages of a partnership with the liability protections of a corporation. It ensures that we can focus on expansion and service excellence without the undue burden of excessive personal liability on our members.

The long-term potential of TrustShield Insurance Agency is substantial. The insurance industry is not only resilient in the face of economic fluctuations but also continuously expanding due to new laws, technologies, and evolving risks that require novel forms of protection. As cyber threats become more common, and as society grapples with the consequences of climate change and other modern challenges, the scope of insurance offerings continues to broaden. TrustShield is strategically positioned to evolve alongside these industry trends, integrating cutting-edge technology and data analysis to enhance risk assessment, product development, and customer service.

The burgeoning population and economic growth of Texas provide a fertile environment for the expansion of our client base. Our focus on forging partnerships with local businesses, real estate agents, and mortgage brokers, coupled with our active engagement in the community, further potentiates our growth. Additionally, the scalability of our business model, centered around a diverse range of insurance products and a profound understanding of our clients' needs, indicates a clear path for regional and potentially national expansion.

TrustShield's commitment to continuous professional development, staying ahead of regulatory changes, and investing in the wellbeing and education of our team ensures that we remain at the forefront of industry best practices. As we look to the future, we envision TrustShield not only as a trusted provider of insurance solutions but also as a thought leader and innovator in risk management strategies for the ever-changing world.

Therefore, TrustShield Insurance Agency is more than just an agency; it is a client-centric, forward-thinking organization primed for enduring growth. We are driven by the belief that an insurance agency should act as the ultimate guardian of our clients' aspirations, achievements, and hard-won stability. With this belief, TrustShield stands ready to usher in a new standard for excellence in personalized insurance services.

The insurance industry is a multifaceted sector characterized by its resilience and adaptability in meeting the evolving needs of consumers and businesses alike. As of the latest trends, the industry is experiencing digital transformation, which is changing how insurance providers interact with customers, assess risks, and process claims. Insurtech, the integration of technology into insurance models, is a burgeoning trend, with telematics, artificial intelligence, and data analytics reshaping the landscape. Moreover, there is a growing demand for policies covering cyber security, reflecting the rising digital risks faced by businesses and individuals in our increasingly online world.

The industry is substantial in terms of size, reaching a market value of trillions of dollars globally. The compound annual growth rate (CAGR) is projected to remain positive, aligning with the economic expansion and the emerging need for various types of insurance. The U.S. insurance industry alone has experienced consistent growth year-over-year, with forecasts indicating sustained upward trajectories.

TrustShield Insurance Agency's target market encompasses a dual-focus demographic. On one end, individual clients and families are targeted for personal insurance solutions such as auto, home, and life insurance. This demographic is extensive and includes adults in the 25-60 age range, across diverse income levels seeking financial protection and security. On the other end, small to medium-sized businesses within the region that require commercial insurance policies represent a lucrative segment with immense growth potential, particularly as the local economy expands and new businesses emerge.

Market needs and demands within our target demographic center on the desire for personalized insurance services that offer comprehensive coverage, competitive rates, and a seamless customer experience. Clients are becoming increasingly knowledgeable about insurance products and services, seeking out agencies that can provide tailored advice and support in line with their unique circumstances. Furthermore, there is a growing preference for using digital channels to manage insurance matters, from policy comparisons to claim submissions, which is raising expectations for insurers to provide online interfaces and tools.

Trends in the market show that customers are looking for flexibility, such as adjustable policy terms and premiums. The increased interest in sustainability also translates into a demand for insurance policies that support environmentally responsible behavior, especially amongst younger demographics.

In considering the competitive landscape, TrustShield must acknowledge several key players within the region, including SecureHorizon Insurance Brokers, SafeguardRisk Insurance Partners, UnityCoverage Insurance Solutions, ReliableProtector Insurance Group, and PremierTrust Insurance Associates. Analysis shows these competitors vary in their market share, with strengths often residing in their branding, established customer bases, and comprehensive product ranges. Weaknesses may include less personal customer service due to larger sizes or limited digital presence. TrustShield's market share is poised for growth as we emphasize personalized service and digital innovation.

Potential barriers to entry in this industry include the significant regulatory requirements and capital needed to ensure solvency and compliance. New entrants face challenges in establishing trust and reputation within a market that relies heavily on customer perception of reliability. Moreover, established relationships between competitors and insurance carriers can serve as an obstacle for newcomers seeking favorable underwriting terms.

TrustShield's detailed market research and analysis has identified clear opportunities to differentiate itself in a competitive market by leveraging technology, sustaining high-quality customer service, and responding effectively to the latest industry trends. These factors will be critical in facilitating TrustShield's market penetration and long-term growth within the insurance sector.

Organizational Structure and Management

TrustShield Insurance Agency is regimented in a hierarchical yet fluid organizational structure that balances both traditional role divisions and modern management practices, ensuring agility and effective governance. At the apex of the structure is the Chief Executive Officer (CEO), steering the overarching strategic direction of the agency. Reporting directly to the CEO are the Chief Financial Officer (CFO), the Chief Operating Officer (COO), the Chief Marketing Officer (CMO), and the Director of Sales. Each of these executive roles oversees specific departments, with managers and team members aligned beneath them in the hierarchy. Our organizational chart, available for inspection, visually represents these reporting lines and functional departments, showcasing a clear demarcation of responsibilities and a streamlined chain of command.

The strength of TrustShield’s organizational structure is amplified by the seasoned experts helming its management team. CEO John Harper brings over 15 years of experience in insurance to the table, coupled with his CPCU designation which is gold standard in property-casualty insurance. Alicia Meyers, as the CFO, wields her CPA credential and a decade-long track record in financial management within the insurance field to maintain the fiscal integrity and health of the agency. The operational aspects of the agency are dynamically managed by COO Samantha Clark, whose MBA and 12-year tenure in insurance operations translate to unparalleled efficiency and productivity. Marketing initiatives are spearheaded by CMO Raj Patel, whose forte in digital marketing revolutionizes our client engagement and brand development. Lastly, the sales team is driven by Emma Thompson, whose 8 years of insurance sales experience ensures a robust clientele and consistent growth revenue streams.

Addressing our staffing needs, TrustShield currently staffs a robust team that includes account managers, claims handlers, underwriters, and customer service representatives, who form the backbone of our day-to-day operations. As we project our growth over the next five years, there is an anticipated requirement to expand particularly in the areas of customer support and claims processing to accommodate an increasing number of policies under our management. Furthermore, we plan to invest in professional development for our sales team to refine their skills in line with evolving market dynamics.

Our human resources policies are crafted to foster a culture of respect, diversity, and professionalism. We practice an equitable recruitment policy, offering competitive compensation and benefits to attract and retain top talent. Regular performance evaluations, coupled with a clear avenue for professional advancement, ensure that each team member feels valued and motivated. Additionally, we place a strong emphasis on work-life balance with flexible working arrangements when possible.

TrustShield also believes in the strategic utilization of external advisors and consultants. We regularly consult with legal professionals to ensure compliance with the latest regulations, and we retain a risk management consultant to advise on our insurance products and corporate insurance policies. Industry consultants too are brought in semi-annually to provide insights on industry trends and competitive analysis, ensuring that TrustShield remains at the leading edge of the insurance market.

In conclusion, TrustShield Insurance Agency’s organizational structure and management are intentionally designed to support a client-centered approach to insurance, while promoting internal efficiency and expert leadership. Our staffing strategies, HR policies, and usage of external consultants all serve to ensure that as we grow, we do so with a robust foundation capable of delivering excellent service and continuing to build upon our strong industry reputation.

TrustShield Insurance Agency offers a comprehensive array of insurance products tailored to safeguard the assets and interests of our individual and commercial clients. Our portfolio includes:

- Auto Insurance: Coverage extends to accidents, theft, vandalism, and natural disasters, with options for liability, collision, comprehensive, and uninsured motorist coverage. We also offer specialty vehicle insurance for motorcycles, boats, and RVs.

- Home Insurance: Our policies protect homeowners and renters against damage to dwellings, loss of personal property, and personal liability. We offer additional riders for high-value items and natural disaster coverage.

- Life Insurance: TrustShield provides term life, whole life, and universal life insurance options to meet varying client needs for financial security and estate planning.

- Business Insurance: Customized solutions are offered to protect against property damage, liability, business interruption, workers' compensation, and professional liability, addressing the unique challenges faced by businesses.

- Health Insurance: Plans include individual health coverage, group plans for businesses, and supplemental policies like dental and vision insurance.

- Liability Insurance: This includes general liability, professional liability, and umbrella policies, protecting clients from legal and financial exposures.

Our unique selling points lie in our approach to providing personalized services that cater to our clients' unique needs. We distinguish ourselves with a consultative approach to policy selection and a quick response to claims. Our in-depth risk assessments and comprehensive policy reviews ensure clients have the coverage they need with transparent pricing structures.

Currently, TrustShield is in the growth stage of business development. We have established a strong product foundation and are actively seeking to expand our market reach and introduce additional insurance products. Future plans include venturing into niche insurance markets, such as cyber liability insurance and environmental policies that address emerging customer concerns.

Our intellectual property assets primarily consist of our brand and proprietary analytical tools, both of which are crucial to our identity and operations. The "TrustShield" name is trademarked, offering legal protection and market recognition. The analytical software we use for risk assessment and underwriting is continually refined, ensuring it remains a potent asset in our service delivery.

The production process in the insurance industry involves risk evaluation, policy creation, underwriting, and claims management. Each step of the process is handled by our trained professionals who use both technology and industry standards to ensure the integrity of our offerings. Our underwriting process is comprehensive, utilizing both traditional evaluation methods and advanced analytics to determine the optimal coverage levels and premiums for our clients.

As an insurance agency, supplier relations entail maintaining strong partnerships with a multitude of insurance carriers to offer a full spectrum of insurance products. Our supplier selection criteria are stringent, requiring our partners to have solid financial stability, favorable claims histories, and excellent customer service records. These partnerships are regularly reviewed and assessed to align with our commitment to providing the best insurance solutions to our clients.

To conclude, TrustShield Insurance Agency’s range of products and services cater to the varied needs of the markets we serve, with an emphasis on personalization and client support. Our competitive advantages lie in our consultative approach and rapid claims service. We are strategically positioned to expand our offering, maintaining essential relationships with reputable suppliers and protecting our intellectual property, all of which serves to solidify TrustShield's standing as a premier choice among insurance agencies.

TrustShield Insurance Agency’s marketing and sales strategy is crafted to effectively position our products and services in the market, attract a diverse client base, and consistently drive revenue growth. The approach is multifaceted, combining traditional and digital marketing methods to reach potential customers wherever they are.

Marketing Strategy:

To effectively market our insurance products, TrustShield employs a variety of targeted strategies to connect with individuals and businesses alike. Our digital marketing efforts are robust, embracing search engine optimization (SEO) to improve our online visibility, and pay-per-click (PPC) advertising to reach customers searching for insurance solutions. We maintain an active social media presence across multiple platforms to engage with community members and provide valuable content related to insurance and risk management.

Our user-friendly, intuitive website is central to our online strategy, featuring instant quote functionality and educational resources that help demystify insurance topics. Offline, we network within local business associations and chambers of commerce to establish B2B connections. We encourage word-of-mouth through a customer referral program, rewarding clients who recommend our services to others. In alignment with our community-centric values, we sponsor and participate in local events, raising brand awareness and demonstrating our commitment to local causes.

Sales Strategy:

Sales at TrustShield are driven by a customer-centric philosophy. Our sales team consists of seasoned insurance professionals who provide personalized consultations, understanding the client's unique requirements to recommend suitable policies. Sales tactics involve a mix of in-person and telesales activities, supported by our online platform that allows for direct purchases.

To support our sales strategy, we offer regular training for our sales representatives, ensuring they are up to date with the latest insurance products and sales techniques. We also maintain a CRM system that provides lead tracking and sales funnel management to enhance the effectiveness of our sales processes.

Pricing Strategy:

Pricing in the insurance market is complex and highly competitive. TrustShield adheres to a value-based pricing strategy, setting premiums that reflect the depth and breadth of coverage offered, while remaining competitive within the market. We conduct regular price reviews to ensure alignment with the industry and provide various discounts and bundled packages to incentivize customers.

Distribution Channels:

TrustShield utilizes several distribution channels for our insurance products. Direct sales are conducted through our online platform and over the phone, providing convenience for customers who prefer digital transactions. For clients seeking a more personal touch, our agents conduct in-person consultations and policy sales. Additionally, we are exploring partnerships with local businesses to widen our distribution network and reach a larger audience.

Promotion and Advertising Plans:

Our promotion and advertising efforts include local print and radio adverts, strategically placed online advertisements on relevant websites, and regular participation in community events. Direct mail campaigns target potential customers based on demographics, and our email marketing keeps us engaged with existing clients through newsletters and personalized communications.

Customer Service Policies:

Customer service is a cornerstone of TrustShield’s client relations. We operate a dedicated customer service department that handles inquiries, claims, and policy renewals with speed and compassion. Our policies ensure transparency in all interactions and a commitment to resolving client issues efficiently. We solicit feedback through surveys to continually improve service delivery and maintain client satisfaction.

In sum, TrustShield Insurance Agency’s marketing and sales strategy is designed to provide a seamless and integrated experience to our customers, combining effective marketing methods with strong sales tactics and exceptional customer service. Our comprehensive approach aims to build and maintain a loyal customer base while attracting new clients in a competitive insurance industry landscape.

TrustShield Insurance Agency's operations plan underpins our strategic goals and serves as the blueprint for our daily business operations, ensuring service excellence and operational efficiency. The carefully designed operational workflow and systematic processes are central to delivering the high-quality insurance products and services our clients expect from us.

Operational Workflow:

The daily operations of the agency rotate around client interaction, policy management, claims processing, and risk assessment. Each business day starts with a team briefing to review outstanding tasks, set daily goals, and discuss any significant issues that may affect our clients or operations. Clients are at the heart of our workflow, and as such, significant portions of the day are devoted to consultations, renewals, and claims handling. Our risk assessment team works extensively with underwriters to ensure that each policy is accurately tailored to meet a client's needs.

Production or Service Delivery Processes:

As a provider of insurance services, our service delivery process involves a series of defined steps: client needs analysis, risk assessment, policy recommendation, underwriting, policy issuance, and ongoing client support including claims management. We use a consultative sales process to first understand the client's requirements. We then match these needs to appropriate insurance products, drawing from our extensive carrier network. Post-purchase, we remain the point of contact for any customer inquiries, advocating for clients in the event of claims and conducting periodic policy reviews.

Quality Control Measures:

Quality control is paramount in the insurance services we offer. All client interactions are documented and reviewed to ensure compliance with industry regulations and internal standards. We conduct regular audits of our processes, from initial client engagement to claims processing, to maintain high-quality service standards. Client satisfaction surveys are used to gather feedback, which forms part of our continuous improvement program.

Inventory Management:

Being a service-based agency, inventory management manifests differently from traditional product-oriented businesses. Our 'inventory' involves maintaining accurate client records, policy documentation, and ensuring that we have adequate access to insurance products. We leverage electronic document management systems to keep track of all client interactions and policy documentation.

Supply Chain Management:

TrustShield's supply chain management entails cultivating and maintaining relationships with diverse insurance carriers. Our key objective is ensuring that these partnerships are robust and enable us to offer our clients a comprehensive suite of insurance options. We evaluate our carriers based on underwriting efficiency, claims handling, financial stability, and breadth of products. Regular performance assessments ensure that the carriers we partner with continue to meet our stringent criteria and client needs.

Facilities and Equipment Needs:

Our physical operations are housed within a modern, accessible office space conducive to both client meetings and employee collaboration. Our facilities are equipped with state-of-the-art security systems to protect client data, which is a critical aspect of our operations. The office is furnished with reliable communication systems, high-speed internet, and industry-standard software for policy management and CRM. As our company grows, future facility expansion and upgrades in technological infrastructure will be evaluated and implemented to support increased operational capacity.

In summary, TrustShield Insurance Agency's operations plan is built around robust workflows, client-centric service delivery, stringent quality control, and effective supplier management. Our ability to execute on this operations plan is supported by our diligent attention to facilities and equipment needs, ensuring that we have the right resources to deliver exceptional service to our clients day after day.

TrustShield Insurance Agency's financial projections are prepared with a conservative yet optimistic approach, reflecting our strategic marketing initiatives, growth strategies, and market research insights. The aim of this financial forecast is to provide stakeholders with a clear and quantifiable outlook on the company's financial performance and prospects over the next three to five years. Our financial projections are rooted in our belief that a meticulously crafted plan, combined with excellent service delivery and prudent financial management, will lead to sustainable growth.

Sales Forecast:

Our sales forecast is based on market analysis, which suggests a significant opportunity for growth through increased market penetration and expanding our product offerings. We anticipate steady growth in sales revenue, which is projected to increase annually as follows:

- Year 1: $500,000 - Year 2: $650,000 - Year 3: $850,000 - Year 4: $1,050,000 - Year 5: $1,300,000

These figures are based on factors including expected market growth, the expansion of our client base, and the anticipated upsell of additional products to existing customers.

Profit and Loss Projection:

Our profit and loss projection accounts for all expected revenues and costs. Gross margins are anticipated to improve incrementally as we scale operations. We project that operating expenses, including marketing, staffing, and office expenditures, will increase in line with revenue growth. However, operational efficiencies realized through strategic management will keep the growth of these expenses proportionally less than the growth of revenue. Net profit is expected to rise following this trajectory:

- Year 1: 5% of sales - Year 2: 8% of sales - Year 3: 10% of sales - Year 4: 12% of sales - Year 5: 15% of sales

Cash Flow Projection:

In our cash flow projections, we demonstrate the company's ability to manage obligations and finance operations from our revenue generation. The cash inflows comprise premium collections and fees, offset by the outflows of claims payouts, commissions, and operating expenses. We aim to maintain a cash balance that supports business operations, with additional liquidity set aside for contingencies and reinvestment into the company.

Balance Sheet Projection:

The balance sheet projection shows the company's expected assets, liabilities, and equity over the forecast period. We anticipate sustained growth in assets, primarily driven by increased premiums and commissions. Liabilities will primarily consist of account payables and accrued expenses. The owner's equity is expected to grow commensurate with the retention of net profits, as we plan to reinvest a significant portion of the earnings to support business expansion.

Break-Even Analysis:

Our break-even analysis identifies the point at which our total revenues will equal our total costs, indicating the sales needed to cover all expenses. We predict that the break-even point will be reached within the first two years of operation, as we invest heavily in marketing and infrastructure to establish our market presence.

Financial Assumptions and Considerations:

Our financial projections are based on several key assumptions, including the steady growth of the local economy, no severe negative regulatory changes affecting the insurance industry, and the successful execution of our marketing and sales strategy. Considerations also include our ability to maintain favorable underwriting arrangements with our carriers, which significantly influence the profitability of insurance products offered.

The financial projections of TrustShield Insurance Agency are formulated with due diligence and attention to market trends and our business growth plan. We maintain a prudent approach to risk and are prepared to adjust our strategies in response to financial performance and market conditions. Our financial roadmap is based on realistic expectations and a clear understanding of the insurance industry, which we believe will guide TrustShield to a profitable future.

In executing a comprehensive business strategy, it is crucial for TrustShield Insurance Agency to recognize and prepare for potential risks that could impact operations and financial stability. Identifying potential risks and establishing appropriate mitigation and contingency plans are fundamental to the agency's long-term success.

Identification of Potential Risks:

Market Risks: - Market risks include changes in industry regulations that could impact our product offerings, shifts in consumer behavior, and economic downturns which may decrease demand for insurance policies. - Competitive risks arise from new entrants to the market and existing competitors expanding their service offerings or engaging in aggressive pricing tactics.

Operational Risks: - Operational risks encompass the potential for systemic failures that could disrupt service delivery, such as IT system downtime, data breaches, or loss of critical staff. - Compliance risks relate to the possibility of inadvertently violating insurance regulations, leading to fines or legal action.

Financial Risks: - Financial risks involve credit risk from clients defaulting on payments, interest rate fluctuations affecting investment returns, and liquidity issues that could impact operational funding. - We also face underwriting risks if our actuarial assumptions prove inaccurate, potentially leading to financial shortfalls in claims coverage.

Risk Mitigation Strategies:

To mitigate these risks, TrustShield Insurance Agency has developed a series of strategies:

Market Risks: - We continually analyze market trends and engage with clients to understand their changing needs, allowing us to adapt our product offerings and marketing strategies. - Competitive research is ongoing, and we differentiate ourselves through servicing excellence and a focus on personalized customer relationships.

Operational Risks: - Our IT systems are fortified with advanced cybersecurity measures, and we carry out regular disaster recovery drills to reduce the threat of disruptions. - Compliance is maintained through regular training for staff on the latest regulatory requirements, and we hire experienced compliance officers to navigate the complex insurance legal landscape.

Financial Risks: - Credit checks and a rigorous client onboarding process minimize credit risk, and we diversify our investment portfolio to hedge against interest rate movements. - Prudent financial management, including reserves for claims and a diversified revenue stream, helps to navigate underwriting risks and ensure liquidity.

Contingency Plans:

In addition to these proactive strategies, TrustShield maintains a set of contingency plans to quickly and effectively address risks should they materialize:

- If shifts in market trends impact demand, we will adjust our product portfolio and increase marketing efforts toward emerging sectors. - Any operational disruption will be managed with backups and alternative operations centers, ensuring minimal service interruption. - Should financial stability be threatened, contingency funds can be accessed, and we will enact cost-saving measures to preserve operational viability.

Insurance and Legal Considerations:

Insurance is not only our business but also our safeguard. TrustShield carries comprehensive liability insurance, including errors and omissions, and cybersecurity policies to protect against potential claims and data breaches. Legal considerations are guided by regular consultations with legal counsel specializing in insurance law, to maintain compliance with state and federal regulations.

By acknowledging and addressing these risks, TrustShield Insurance Agency ensures that it is positioned for resilience in the face of challenges, safeguarding our operations, reputation, and financial strength now and into the future.

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Homeowners Insurance FAQ

• Are there ways I can help protect my home? Preventive maintenance can save you a lot of time and money over the life of your home. This interactive guide can help you identify potential problems before they arise.
• How much homeowners insurance coverage do I need? First, start by knowing what is commonly included in a homeowners policy, then identify your wants and needs to ensure you are getting the coverage you desire. While certain coverages may not be able to be changed to ensure your home is properly protected, understating what is included and knowing what protections you want will help you make the right selections when purchasing a policy.
• What does homeowners insurance cover? You might need more homeowners insurance coverage and not even realize it. Here are some commonly overlooked areas that could be putting you and your family at more financial risk than necessary.
• Fire and smoke damage
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• Replacement cost If your home is destroyed in a fire, how much would it cost to rebuild it? The actual cost is the replacement value. This amount includes materials, labor, inflation, and availability of building materials. Estimated replacement cost is the difference from the current tax assessment or market value of your home. This cost accounts for the actual cost to rebuild your home.
• Location, location, location Risks like extreme weather, distance to a fire hydrant, and crime rate all can impact your premium. For example, you might pay more for waterfront property or if you're located in an area prone to flooding. The cost of construction varies by region, which is another factor that determines the cost of your homeowners policy.
• Age and condition of specific things like the age of the roof, building materials and renovation of home systems.
• Your deductible amount. The higher your deductible you select, the lower your premium
• Home safety devices like smoke detectors, burglar alarms and dead bolt locks can help you stay safe and lower the costs
• How can I prevent claims at my home? Clutter can take many shapes. Homeowners should be aware of potential risks, liabilities, and hazards before they occur. This will help to avoid future accidents .
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• If the inspector needs to verify features impacting replacement cost, they may request to see the interior of your home.
• Once the inspection is complete the information will be reviewed to determine if it is necessary to make any changes to your policy to ensure that your home is adequately protected.
• If hazards are found in the inspection, the next steps will vary and may include requiring repairs or cancelling the policy.
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• Best for customer satisfaction
• Best for older adults
• Best for long-term care
• Best for high returns
• Best for agent support
• Best for term life
• Why you should trust us

Best Life Insurance of June 2024

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

Life insurance is as complicated as the policyholders and beneficiaries who use it. That means there's no single "best" life insurance company. Instead, you can find the best option based on what you want or what you prioritize.

Summary of the Best Life Insurance Companies

• Best for customer satisfaction: State Farm Life Insurance
• Best for older adults: Prudential Life Insurance
• Best for agent support: New York Life Insurance
• Best for long-term care: Columbus Life
• Best for high returns: Allianz Life
• Best for term life: North American Company

Best Life Insurance Companies of 2024

While there is no such thing as the objective best life insurance policy, you will be able to find the best insurance policy for your specific needs. Here are our picks for the best life insurance companies, whether you want to use your life insurance policy to build wealth through cash value or you're just looking for a term life insurance policy .

Best Life Insurance for Customer Satisfaction

State farm life insurance.

State Farm Life Insurance gets the best life insurance ranking in J.D Power's Individual Life Insurance Study, with a score of 843/1,000. The company is also ranked A++ with AM Best for its financial stability with term, universal, and whole life insurance options. 

All State Farm policies have to be purchased through a State Farm agent. Your agent can help you bundle and save or buy one policy. State Farm is also among the companies offering "survivorship universal life insurance ," which means the policy covers two people, and it kicks in after the second person dies. Couples looking to maximize their death benefit for beneficiaries with one premium payment each month may enjoy lower overall costs.

State Farm agents can run quotes and compare options to find the right plans for each applicant. The range of options, discounts, and familiar name all contribute to the popularity of State Farm's life insurance.

Read our State Farm Life Insurance review .

Bundling is standard, and agents often quote with multiple discounts.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Best in JD Power customer service ratings
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Company offers a range of different insurance products to meet buyer needs
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Agents are knowledgeable about its products
• con icon Two crossed lines that form an 'X'. Life insurance products are conservative and limited
• con icon Two crossed lines that form an 'X'. Buyers may be subject to multi-year waiting periods before they qualify for full payouts on life insurance policies
• con icon Two crossed lines that form an 'X'. State Farm agents cannot offer alternative options if State Farm is unable to bind a life insurance policy

State Farm is one of the insurance industry's most prominent insurers offering auto, home, and other insurance. Bundling is standard, and agents often quote with multiple discounts. Its term, universal, and whole life insurance products are no exception.

• Life insurance products include term and permanent life
• Ranks highly for customer satisfaction

Best Life Insurance for Older Adults

Prudential vul protector life insurance.

Prudential Life Insurance is available in all states except New York. New York residents can buy the Pruco Life of New Jersey VUL Protector plan. This plan allows buyers to pull money out of their plan to pay for nursing home expenses. Cash value policy premiums are fixed, so you won't have to worry about extra costs later on. Internal costs are low, which minimizes risk. Due to age, many older adults want a safe investment option for their money. Prudential VUL Protector invests to avoid loss. That also means you're not as likely to see big increases in your available funds outside of what you deposit.

Read our Prudential Life Insurance review .

Offers aggressive financial plans.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Available in all 50 states (New York residents may have different plans)
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Buyers can withdraw money to pay for nursing home bills due to severe illness or disability
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Knowledgeable agents who can walk you through your options
• con icon Two crossed lines that form an 'X'. Financial returns are limited
• con icon Two crossed lines that form an 'X'. Limited policy options for seniors and other groups who might struggle to find life insurance

The aggressive financial plans offered by Prudential may appeal to many younger buyers and those with a stable income. However, those with lower income or buyers who aren't sure about the financial system may be more hesitant to engage with Prudential. Like many other industry giants, Prudential is working to change this perception.

Best Life Insurance for Long-Term Care

Columbus life insurance.

Columbus Life offers a wide range of riders to customize your policy with affordable premiums. The company also allows you to convert term policies to whole life insurance policies until the end of your term (generally around age 70). For this and many other reasons, customer satisfaction is high.

When using living health benefits (otherwise known as accelerated death benefits), buyers are allowed to pull money from policies early to pay for medical bills, living costs, etc. under certain circumstances. Most companies use a discounted death benefit, which reduces your final payout using two models. Columbus uses the lien method, which makes it easier to calculate the financial impact of pulling money out early.

Offers lien method to makes it easier to calculate the financial impact of pulling money out early.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Buyers can pull money out for medical and other bills in the event of disease or disability
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Columbus uses lien method to simplify accelerated death payments
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Company offers a wide range of riders to customize policies
• con icon Two crossed lines that form an 'X'. Premiums may be higher than competitors
• con icon Two crossed lines that form an 'X'. Term policies are not guaranteed to be converted to whole

Best for long-term care and accelerated death benefits.

Best Life Insurance for High Returns on Income

Allianz life insurance.

Allianz Life plans are geared towards high-income adults looking for more tax-free income. Allianz offers a 40% multiplier bonus with a 1% annual assets charge. In short, the professionals managing your investments take 10%. Overall, your investments would pull in an extra 14%-1% asset charge. This means you end up with 3% more than what you deposit every year your life policy is active. This plan offers strong returns when using a life policy to supplement your retirement savings. Allianz also offers specialized plans to grow your income by as much as 20% according to some estimates.

Of note: Allianz also offers plans for foreign nationals, including those with H-1B visas.

Offers life insurance policies for foreign nationals with H-1B visas.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Plans offer high returns on investment
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Great for investment and long-term retirement planning
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. May increase your income by as much as 20%
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Allianz offers plans for foreign nationals including H-1B visas
• con icon Two crossed lines that form an 'X'. Plans are meant specifically for high-income adults, alternatives may not be offered

Best for investing and high returns on income.

Best Life Insurance for Agent Support

New york life insurance.

New York Life Insurance agents go through extensive training before they ever hit the sales floor. What does this get you? Policies vary widely, and New York Life offers both large and small payouts. Some policies have significant penalties for early withdrawal, but taking a loan offers more options. Whatever your questions, New York Life agents are trained to offer comprehensive support giving you accurate information about its policies every time. The company comes in at position eight in J.D. Power's latest life insurance customer satisfaction study.

Read our New York Life Insurance review here.

Offers aggressive financial products and extensively trained agents.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Strong life insurance options for financial planning and wealth building
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Policies available nationwide
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Knowledgeable life insurance agents
• con icon Two crossed lines that form an 'X'. May require a medical exam
• con icon Two crossed lines that form an 'X'. Buyers looking for more modest policies may not find the most competitive pricing

If you're preparing for a comfortable retirement or looking to build generational wealth, New York Life is one of the strongest options. If you have questions or genuinely want to understand your life insurance options, New York Life agents are among the most qualified professionals in the business.

• Life insurance provider with policies available across the US

Best Life Insurance for Term Life

North american life insurance.

North American Company offers term policies alongside accelerated death benefits for critical, chronic, and terminal illnesses and more. The company allows one conversion on a 20-year policy at 15 years or 70 years old (whichever is earlier). The conversion cannot happen later than the five-year marker regardless of which policy you choose or the length. North American Company also offers a term policy with a lower premium renewable up to the age of 95 for qualifying insureds.

Offers term policies alongside accelerated death benefits for critical, chronic, and terminal illnesses and more.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers accelerated death benefits for critical, chronic, and terminal illnesses
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers conversion for life policies up to 70 years old
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Term policies can be renewed up to age 95 for qualifying applicants
• con icon Two crossed lines that form an 'X'. Not all term policies qualify for renewal or conversion

Best Term Policy.

Types of Life Insurance

While there's many different types of life insurance policies , broadly speaking, there are two types of life insurance: temporary and permanent. Let's go over each in detail.

Temporary life insurance

Temporary life insurance is often called term life insurance. This type of policy covers you for a set amount of time before expiring, usually between 10-30 years. If you pass away after your policy expires, your family won't receive any benefits. Additionally, your policy won't accrue cash value like a permanent policy. That said, some term life insurance policies offer a conversion from term to whole life insurance, so you can extend your coverage. 

Because its benefits aren't guaranteed, term life policies are generally cheaper than permanent life insurance. That said, the vast majority of term life insurance policies never pay out. on

Permanent life insurance

Permanent life insurance is an umbrella term for a variety of life insurance policies that will insure you indefinitely and guarantee a payout as long as you maintain your policy. Policy types that fall under permanent life insurance includes:

• Whole life insurance
• Universal life insurance
• Variable life insurance
• Variable universal life insurance
• Simplified life insurance
• Guaranteed issue life insurance

These policies vary widely in purpose and intended buyers, but all guarantee death benefits to your loved ones. Some permanent life insurance policies, like whole, universal, and variable have a cash value component , which you can use as a savings tool or to leave your heirs a larger death benefit.

How to Pick the Best Life Insurance Policy for You

Finding the right fit in life insurance starts with finding a trusted insurance agent. Because there are so many state regulations, shopping for homeowners or auto insurance can be easily done online. Life insurance is not required. So it's a voluntary purchase. Many buyers don't know what they need or when they need it. Before making your selection, consider a few things:

Some companies will sell you a policy for your child as soon as they're born. While this may seem morbid, early sign-up means lower rates for a policy your child could enjoy in the future. Regardless, early sign-up equates to more policy for lower premiums and a higher likelihood of acceptance. At 20, you may be healthier and be able to pay into the policy for a longer period compared to when you're 50 with more age-related conditions.

As a general rule, never agree to more than you can afford. For the average life insurance agent, their job is to sell you a large policy with a large commission. Consider not only how much you make now, but how likely your current income is to continue. If you work on a project basis and your project is scheduled to end in 12 months, you may want to reconsider a policy premium outside your monthly savings.

How much are you prepared to buy? Some people only want a small policy to cover funerals and other end-of-life expenses. Others build a life policy into their retirement plan. Whatever direction you're going, involving a financial planner could help you make the right decisions. Depending on the carrier, customers can also compare set limits with index universal life policies, which set no limit. These policies never expire, and the value builds over the entirety of your life.

Living Benefits

Life happens unexpectedly. You could be healthy one day and in the hospital the next. Many life policies offer living benefits. These allow you to draw a limited amount out of your policy to cover medical and other bills you cannot pay while sick.

Much like a 401(k), many life insurance policies have penalties for early withdrawal. No matter what policy you want, this question is critical to an informed decision. It's a question of how early you can withdraw and how much you'll lose from the total to have the money in 10 years instead of 30 or after death.

Some policies require insured parties to pay premiums for at least one year before any significant payout would be available. Suicide exclusions are common. Even with no medical exam policies, the company may still do a check for known conditions. An insurance company has to mitigate its risk.

Flexibility

Once you've been denied a life insurance policy, a mark goes on your record. No matter the reasons, other insurance companies may deny you coverage based on the first denial. So consider your whole situation and choose your policy carefully before you submit any applications. Some policies have greater flexibility if you lose your job or otherwise can't make payments. Others will lapse if you miss even one payment.

Payment Type

Even within whole life or term life insurance policies, customers have the option to choose guaranteed fixed or variable rates. Some have guaranteed payouts, but you'll need to ask your agent for details.

What is your intended use? Why are you shopping for a life insurance policy in the first place, and what are your goals? Many successful financial planners also have a background in life insurance. So while they may not be able to find you a specific life insurance policy, financial planners can help you set out a blueprint for your purchase.

Why You Should Trust Us: How We Reviewed the Best Life Insurance Companies

In life insurance, it's easy to get "sold a bill of goods." Many life insurance agents pass a state test to be thrown into the deep end. Agents sell the company product, but not all know the products. In this vein, we look at the products each company offers. We also look at agent training.

A good life insurance agent may not volunteer all facts upfront. But a company's agents should answer questions about its products accurately and in a way the average consumer can digest. Agents should be able to inform you about the long-term benefits and limitations. This will help customers find the right policy for their long-term plan.

We consider affordability, policy sizes available, and performance for a comprehensive assessment in our life insurance rating methodology . If you can, we recommend also working with a financial advisor to make a plan for your future with life insurance.

Our Expert Panel for The Best Life Insurance Companies

To inform our choices for the best life insurance companies, we spoke with the following experts:

• Paul LaPiana , head of product at MassMutual
• Barbara Pietrangelo , CFP, CLU, and chair of the nonprofit Life Happens
• Wykeeta Peel , Corporate Vice President and Market Manager, African American Market Unit at New York Life

The Experts' Advice on Choosing The Best Life Insurance for You

How much life insurance coverage do you believe the average buyer should have.

Paul LaPiana, Head of Product at MassMutual

"There are different approaches to determining how much life insurance you need. One is the 'human life' approach, which estimates the current value of your future earning potential. Another is securing specific coverage to pay off debts such as a mortgage or provide for the education of children. A comprehensive protection plan should provide the right amount of coverage over the course of your working life and into retirement."

Barbara A. Pietrangelo, Chair of Life Happens

"There is no one-size-fits-all life insurance policy because everyone is different. One way to get a rough estimate is to multiply your income by 10 to 15; another is adding $100,00 to that amount, should you have a child and anticipate college education expenses.

Your best bet is to talk to a financial professional or use the Life Insurance Needs Calculator on LifeHappens.org to analyze what's right for you."

Wykeeta Peel, Corporate Vice President & Market Manager African American Market Unit at New York Life

"As you consider what policy best meets your needs, it can help to answer four key questions: First, how much death benefit do you need? Second, how long will you need that coverage? Third, what is your budget (or how much monthly premium can you afford to pay?), and finally, what is your investment risk tolerance?

To determine how much death benefit makes sense, it's helpful to think beyond using life insurance to cover funeral expenses and consider whether anyone is relying on the policy owner's income to maintain a lifestyle, pay rent or a mortgage, or fund a child's education and for how long.

There are various rules of thumb regarding the right amount of Life insurance coverage. Some tips can be found online, but they only provide an estimate and don't necessarily factor in an individual's specific needs. In my opinion, human guidance, powered by technology, is required. Basically, it comes down to how much money your loved ones would need to remain on firm financial ground if your earnings were no longer in the picture and that is different for everyone."

What is the biggest opportunity you see for improvement in the life insurance industry?

"Increased accessibility through digital and other channels as well as through underwriting enhancements. Increased tailoring of products and features. And an increased emphasis on health and wellness programs."

"Having enough qualified insurance professionals to walk potential buyers through the multiple benefits of life insurance will be pivotal to the growth of the industry. Education is a key factor here, as professional agents also need to be able to explain life insurance and its benefits in an easy, digestible way, especially when there are so many misconceptions about life insurance."

"The need for life insurance is greater than ever. In fact, a recent New York Life Wealth Watch survey found that 37% of adults have been thinking about life insurance more often these days – and half of adults report that financial products that provide protection (50%) and reliability (50%) are more important now compared to last year. This may be especially true for middle-market and Cultural Market families.

Our organizational structure of having Cultural Market agents embedded in the communities where we live and work allows us to understand the needs of diverse communities and develop solutions that resonate with them."

What advice would you give to buyers who are debating whether or not to buy life insurance?

"It is difficult to say with any certainty how healthy you will be years from now. That's why securing life insurance, and insuring your insurability, today, when you are the youngest you'll ever be again, and perhaps your healthiest is a wise decision."

"Do you love someone? If the answer is yes, then life insurance is certainly something you should consider. Many buy gifts and experiences to express their love, but haven't considered that life insurance is just another way to say I love you. Nothing says support like ensuring your family's financial security and peace of mind."

"If you have someone depending on your income, you should consider purchasing life insurance. A death benefit from a life insurance policy can replace income from the loss of a breadwinner, ensure a family can stay in their home, fund educational or retirement expenses, address debt and so much more.

A life insurance policy can also help you grow your family's wealth over time. Once the risk of an unexpected loss has been managed, you can begin to think more broadly about your family's financial future. Life insurance can enable your mindset to shift from death to growth."

What's the most important thing buyers should look for when choosing a life insurance agent/company to buy from?

"With life insurance, you are securing a future commitment that may be decades away. Research the company behind the policy to ensure it has high financial strength ratings, longevity, and an excellent track record of paying claims."

"When looking for an insurance agent or company, be sure to do your research. When comparing companies, be sure to remember that the policy features that fit you and your loved ones best is the most important factor. Don't automatically assume you should buy from the higher-rated company.

If the policy from the other company has more of what you're looking for, it might be the better choice. If you're unsure where to start, try the Life Happens Agent Locator to find an insurance professional in your area."

• "The insurers' track record: At its core, life insurance is protection - a hedge against the unexpected - and you are paying premiums in exchange for the promise that the insurer will be there when you need them, so the financial strength and track record of the company backing your policy is critical.
• Customer service: Are service professionals available by phone and digital channels? Is there is an online dashboard where you can manage your policy? Beyond ensuring assistance is available after you purchase a policy, it's also critical to ensure you have access to trusted advice and guidance before you buy.
• Flexibility in conversion: How easy is it to change? Life can be unpredictable and while term insurance can cover your loved ones through a critical period of time, you may decide that access to cash value is an important piece of your strategy.
• Accelerated online applications : Online applications are convenient but don't replace human guidance. Keep in mind that accelerated online applications may have a maximum coverage amount, meaning that you may not be able to get all the coverage you may need exclusively through an online process.
• A range of payment options: It's important to understand how often you're required to make premium payments and whether and how often you can change the frequency of payments."

Best Life Insurance FAQs

According to JD Power's 2023 life insurance study, State Farm is the highest-rated life insurance company when it comes to overall customer satisfaction. However, you still may want to shop around for quotes from various insurers if you're looking to purchase a new policy.

There isn't one best life insurance company, because the best option for you will depend on the type of policy you're looking for. It's best to work with a qualified insurance agent to help you find the best coverage. If you're deciding between multiple similar options, it's also worth consulting J.D. Power's life insurance customer satisfaction study . The latest study ranks State Farm as the top pick for individual life insurance, outpacing Nationwide by three points.

The best type of life insurance policy for you will differ from someone else's, as your policy should be tailored to your needs. The best policy for you will be affordable and will offer the benefits best suited to your situation. For example, some policies are only meant to cover end-of-life expenses such as burial and funeral arrangements, whereas others include living benefits like a cash value insurance plan , which you can borrow against during your lifetime.

Some life insurance policies are advertised as "no medical exam." This doesn't mean the insurer won't ask you about known conditions or look at medical records. Policies with no medical exam also tend to offer lower benefits with higher premiums. Most companies have a network of medical examiners, some of whom can come to your home. You can find our guide on the best no exam life insurance here.

Each situation is different and requires a knowledgeable life insurance agent to assess your best options. Bring all your questions and the coverage you're looking for to an insurance agent near you to explore your options.

• Main content

• How Do You Buy Small Business Insurance?

How Much Will It Cost to Protect Your Business?

• Bundled Insurance vs. Individual Coverage
• Different Types of Business Insurance
• Find the Best Insurance Providers in Your State
• Business Insurance by Industry

Business Insurance FAQ

Additional resources, business insurance.

Last Updated: March 27, 2024, 2:07 pm by TRUiC Team

Small businesses need insurance to protect themselves from a variety of risks, including natural disasters and lawsuits from employees and customers.

We'll help you find the right types of business insurance to fit your needs (and your budget).

Recommended: Next Insurance  is dedicated to matching small businesses with the right policies at the best price.

Insurance companies use several factors to calculate your monthly premium. Some of the well-known aspects include: 

• Type of coverage
• Number of employees
• Geographical location of your business
• Financial stability 
• Existing safety and security features of your building, equipment, and/or vehicles

It’s estimated that small businesses pay anywhere from $14–$124/month for any one kind of insurance coverage. 

Affordability is an important factor in choosing business insurance — take a look at our low-cost business insurance guide to learn more about pricing. Below is a chart that shows you the average cost of popular types of coverage:

Sources: AdvisorSmith, The Hartford, Hiscox, and Insureon

Compare Quotes Online

Use our dedicated small business insurance provider to generate a quick and accurate online quote created specifically for your small business.

Types of Business Insurance

The type of insurance your business needs will depend on what you do and the size of your business.

A good first line of defense — or rather, if you only were to choose one policy — then it should be general liability insurance . General liability will help protect your business against the most common risks like personal injury and property damage.

Other types of business insurance include:

Business Owner's Policy

Workers' Compensation Insurance

Commercial Property Insurance

Commercial Auto Insurance

Umbrella Insurance

Professional Liability Insurance

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Small Business Insurance by State

Business Insurance requirements can vary state by state. When looking at what business insurance you will need, as well as those that are highly recommended, be sure to familiarize yourself with your state’s requirements. Check out our guide on Business Insurance Requirements by State .

Let's Find the Coverage You Need

The best insurers design exactly the coverage you need at the most affordable price.

What is covered by business insurance?

Business insurance covers businesses from losses that can happen in the natural course of doing business. This can come from various situations, like property damage, lawsuits, loss of business income, bodily injury, fire, and more.

What you choose to get covered depends on your industry and the different types of policies you choose to take on for your business.

Do I really need business insurance?

Businesses need insurance for several reasons. Depending on the state they operate in, businesses may be required to get specific types of insurance like workers’ compensation . 

In addition to this, some businesses may refuse to work with you unless you carry your own insurance, as they do not want to assume the risks and liability for your work on their own insurance.

When do I get business insurance?

You should get business insurance when you start your business, especially if you plan to start doing business right away. This way, you can be protected from the very beginning from any lawsuits, property damages, costs associated with bodily injury, and anything else that could happen to your business.

How much should business insurance cost?

The cost of business insurance for a small business is typically between $700 and $3,800 a year, but this depends greatly on what types of insurance your business needs.

We recommend doing some research into the risks faced by your business and getting a business insurance quote from a trusted source.

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