A number of details should be considered when forming an agency or when going “independent” from a captive carrier environment. Oftentimes one gets “stuck” into a certain paradigm of thinking as a captive, so we offer the following “points to consider.”
- Develop a business or marketing plan with short, intermediate and long term goals including a succession plan. (Referral to SPA Consulting)
- Determine what type of “company” the agency will be. (LLC, S-Corp, Stock Corp, partnership, sole proprietor etc. – you may need a new or separate FEIN)
- Some States require an Agency License.
- All appointing companies will require E&O coverage. If a Corporation with a Board, you may wish to also consider D&O.
- Some states require a “Producer Bond.” You may wish to consider a fidelity bond covering employees.
- Payroll service? (we can refer)
- Access to group health? (we can refer)
- Will you desire an Agency Management System?
- Consider a rapid rater for simultaneous multiple company quotes.
- Access to carriers for majority of targeted client risks.
- Access to LexisNexis MVR driver records (we can refer)
- Affiliation with an “Aggregator” for access to multiple carriers and Excess and Surplus Lines providers, where no or minimal production quotas per company exist.
Talk to our President Bob Austin or Marketing Exec John Walker for the tangible benefits of affiliating with SIMG, or if you have any questions regarding how your membership can enhance and advance your business.