This guy makes it look so simple.
He forgot to mention the cost of lobbyist in Tallahassee!
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How to Start Your Own Insurance Company | Chron.com
How to Start Your Own Insurance Company
by Owen E. Richason IV, Demand Media
For entrepreneurs that want to build a small business that provides an ongoing revenue stream for years to come, an insurance agency is an ideal opportunity, as clients repurchase products to ensure that coverage continues. Among the types of insurance products an insurance agency can sell are: life, annuity products, term and whole health, automobile, homeowners, property, causality, and disability. Opening an insurance company requires some preparatory steps.
Step 1
Become a licensed insurance agent. Laws and identifiers differ by state, but in general you will need a Property and Casualty Insurance license and/or a Life, Health and Variable Annuity license. For instance, in the state of Florida, these are referred to as 440 and 220 licenses respectively. Each can be obtained online or through classroom instruction. Most community colleges also offer these courses.
Step 2
Determine what products you will offer. Typically, insurance agencies do not limit themselves to specific products and carry a variety of insurance plans. However, you might consider specializing in one particular product while still offering other insurance plans. As an example, you might wish to focus on corporate health benefit plans and sell employee insurance benefits to companies while still offering life and variable annuity products.
Related Reading: How to Start Your Own Purse & Bags Company
Step 3
Apply for a business loan and insurance. Compile a list of all start-up costs including but not limited to: office equipment, lease monies, employee expenses like wages and benefits, and insurance, such as liability and errors and omission insurance. Using these numbers have an accountant or business plan writer write a business plan to apply for a small business loan using the Small Business Administration's approved lender database.
Step 4
Locate suitable office space. Office space should have a well maintained exterior and interior and provide enough space for a reception area, one or two offices and a conference room for initial client consultations and workshops for potential clients.
Step 5
Buy a franchise or open your own agency. Choose between buying a franchise and opening your own independent insurance agency. The advantages of buying a franchise is operating under a well established name and having access to "in-house" financing provided by the parent company. The advantage of opening an independent agency is freedom to choose any product.
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About the Author
Owen Richason grew up working in his family's small contracting business. He later became an outplacement consultant, then a retail business consultant. Richason is a former personal finance and business writer for "Tampa Bay Business and Financier." He now writes for various publications, websites and blogs