How To Start An Insurance Company

Hey how are you this is chris here with adelphia insurance and wanted to make a quick video on how to start an insurance company this is a very common question and if i had watched a video like this when i was first starting up my agency brokerage here i would have probably you know expedited.

A lot of the process and the time so i'm hoping that you get some of that as well when i'm making this to you know avoid some of the mistakes you know expedite that prospect process avoid spending hours countless hours online like i did it was just a rough probably six month.

Period where i was just searching everywhere couldn't find anything and i'm going to try to keep it very very straight to the point so let's dive straight into it the first things first there's a major difference between an insurance company or carrier.

Than there is an insurance brokerage or agency this is commonly mistaken by customers people consumers and the major difference is that and i'll touch on it an agency or brokerage conducts and sells insurance on behalf of those.

Insurance companies or carriers so a carrier is an example would be liberty mutual nationwide progressive aaa all these big carriers that have extremely deep pockets and they're the ones who will pay out a claim in the event of a you know a claim an accident or something happens fire.

Car life insurance whatever so we're an agent or broker and we conduct or we sell policies on behalf and get paid commission so this is an agency brokerage so i won't touch on how to start an insurance carrier company because i've never done that and i can't speak on that i've only started.

At brokerage and people call it company as well because we are a company essentially so there's a few steps that i highly recommend and these are necessary first of all for the business structure foundation you need this to start an insurance agency or brokerage first things first.

I highly recommend that you have some insurance experience before launching any type of whether it's a carrier company agency brokerage whatever have some type of insurance experience whether it's sales customer service personal lines insurance commercial insurance.

Whatever you know you do don't go into it cold you're going to set yourself up for failure if you don't know what you're doing or you're going to set yourself up for a very bumpy very bumpy ride next thing i do think well no i don't think i know 100 percent you need this.

In order to sell insurance is an insurance license make sure you're licensed in the state that you're conducting insurance there's you know pnc property and casualty and then there's life and health license so you need to have that to.

Conduct and sell insurance legally step three once you have that license you need to get an appointment which is a contract essentially with those insurance carriers or companies that i was talking about nationwide liberty triple a blah blah you need to be able to have a contract.

With them which basically states chris will be selling a policy and you know progressive or somebody will be paying him a commission that's that appointment and that's that contract um you know that allows you to sell their products that's a big hurdle that a lot.

Of people run into and i won't dive into how to get these appointments that's something you need to reach out to me directly and i'll put my email below hit me up i'm happy to explain there's ways around it and it's very tricky to do.

Long story but i'll dive into that later there's another video on it another thing you need is an errors in admissions policy or what is also called professional liability insurance basically says an eno quote base or i'm sorry policy says if chris constantini messes up my policy or adelphia insurance messes up my.

Insurance policy that we will protect you know his mistake if it is you know covered or negligent if i'm you know omitted or forgot to put something or change the name or made a wrong name on somebody's policy it'll basically cover me you know insurance for the insurance agent's.

Mistake that's that next thing you need is an approval from the department of insurance you basically need to get your license approved under your name saying chris can legally conduct insurance under that license number and i think it's like 80 bucks on the insurance.

Department of insurance there's also what's called a business entity insurance license insurance license so for example my insurance license is adelphia insurance services llc and i am a producer under that individual business entity license so the one that's actually selling the.

Policy is adelphia insurance i'm just the producer or you know agent on that business entity license so the business entity is the one who's selling the insurance you need to contact the department of insurance they're the ones that are going to be able to.

Explain that there's an application i think the business entity is a little bit more expensive so look into that you may need to get a broker bond as well typically some carriers require like a ten thousand dollar broker bond um also check out the department of insurance you can see what their.

Requirements are for your specific state um and most importantly patience the first six months that i started my agency i was completely lost didn't know what i was doing thank you to everybody who supported i'm now almost three years in and i know i definitely know what i'm doing now.

But uh you know the first six months were really rough struggled a lot didn't sell a lot was just trying to build up you know relationships trying to figure out structural things like this very very you know lots of wasted time and hopefully watch some of the videos guys i hopefully.

Some of them bring some value to you and help you know your process move a lot a lot quicker if you just follow i'm not just making this stuff up i'm doing it and i'm saying it because i want to just give people as much value as i can and you know make you guys a little more successful.

Than i am and faster than i am um so yeah any questions you have on the business entity type stuff or like starting up an actual business let's say it's not insurance go to legalzoom you know get a sole proprietorship business license llc you know corporation set that up and then you know then you're legally you.

Know conducting conducting business i'm not a lawyer so anything i say here guys it's just based on my experience and what i did um i'm not telling you exactly how you should do and what type of corporation sole proprietor you should talk to a business lawyer or somebody.

Who's in at legal zoom go talk to legalzoom they'll handle everything for you it's super cheap it's easy and they'll help you get your stuff going but as far as an insurance agency those are kind of the structural things you might need so always check with your department of insurance and see what is needed.

And hopefully that was helpful if you did get any value guys please i would really appreciate you giving me a like subscribe and i'll keep making these videos and hopefully explain some of the stuff that was unclear to me when i first started and get you on your way and shoot me an.

Email if you're looking for a coaching or consulting call i'll put my email below and you can hit me up i'm happy to help and jump on a quick call for you guys and we'll see you guys soon keep up the good work and everybody get after it we'll see you guys at the top.

Peace
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