The Essential Checklist for Starting Your Independent Agency

If you’re thinking about how to become an independent insurance agent, you’re not alone. Many enterprising entrepreneurs are making the leap.

The industry used to favor captive insurance agencies and the policy and product restrictions that came with them. But with independent agencies offering consumers a variety of insurance plan options that go beyond captives, the tides are turning.

Clients are shopping around, and you have the opportunity to call your own shots. Does “agency owner” have the right ring to it? This checklist breaks down how to start an independent insurance agency, from the first steps you should take to what to do to sustain your success.

Lay the Groundwork for Your Agency

Independent insurance agents fit diverse profiles, from brand-new agents forging their own paths to seasoned professionals tired of the corporate grind. No matter your story, you can follow the same basic building blocks as you navigate how to start an independent insurance agency.

Write a business plan. Your brand-new insurance agency needs some direction, so get started by brainstorming a business plan. Have a passion for a particular line of insurance? Determine your insurance niche – such as property and casualty (P&C), commercial, benefits or a combination of those – to better customize your services, your marketing and even your long-term growth strategy.

Think about your ideal clients and the revenue targets they could help you reach. Factor in every demographic – including age, income and geography – plus their coverage needs and buying behavior. Younger clients may prefer digital interactions and value affordability, while older clients may prioritize comprehensive coverage and personalized service. Whatever the case may be, it will shape your marketing and outreach efforts.

Register your business. No two agency structures are identical, and each carries unique tax and liability implications. Choose a legal structure that supports your goals.

• Sole proprietorship: Take full control of your new agency, but remember: Sole proprietorship carries the most risk because your personal and business assets are lumped together.
• Partnership: Share responsibilities and financial risk equally with at least one other partner, putting your individual assets on the line.
• Limited liability company (LLC): Register as an LLC to separate business and personal assets and take advantage of enhanced protection against legal and debt risks.

Secure necessary credentials. Does your niche and/or region require specific certifications for insurance agencies? If you haven’t already, enroll in pre-licensing courses and study up to pass your state’s insurance exam to earn your license.

If you’re going to work for yourself and limit the insurers your agency supports, put “Get E&O insurance” on your checklist. This coverage protects your business from liability in case you overlook something in your advice or services. It’s such a must-have that most carriers will look for it before granting your appointment.

Secure Carrier Appointments That Fit Your Goals

As you navigate how to start an independent insurance agency, make sure you can represent your partners in good faith and make strides toward business goals. Secure carrier appointments that suit both you and your insurer partners.

Select suitable carriers. Maybe you’re leaning toward the nationwide carrier with the catchy jingle or a smaller regional player known for top-notch service and expertise. One thing’s clear: The fit has to be right.

Gimmicks aside, focus on those aligned with your target market and product lines. Research insurance carriers for insights into their available service lines, reputation for quality and appointment requirements, such as E&O insurance or minimum production volume.

Expedite market access. Fast-track your path to an appointment by thinking outside the box. If a direct appointment isn’t in the cards, indirect options can crack open the door.

• Managing general agents (MGAs) provide carrier access without a direct appointment.
• Clusters or aggregators offer shared access to carriers, training opportunities and marketing resources.
• Referral partners lend their expertise to build carrier trust while you continue to grow.

Rev Your Marketing Engine

You could send postcards or rent a billboard to get a running start, but that’s not all. Maximize your agency’s visibility by being active where people spend their time.

Establish your digital presence. Building up your agency online is just as important as the brick and mortar that built your physical office. Start small with these DIY digital tactics, and then experiment more as you get comfortable:

• Launch a professional website: Build your online presence – whether it’s a free Wix site, WordPress option or a professional website for independent insurance agencies – to drive traffic and capture new leads. And don’t forget to continually add and optimize content for SEO and AI search.
• Claim your Google Business Profile: Create a listing with all your essential business information, such as contact info, a map for directions and even team photos. Plus, integrate third-party tools to request client reviews and feature your favorites.
• Create social media profiles: The best platforms vary by industry and what you wish to accomplish. Define your goals (website visits, new quotes and so on), dip your toes into a few social platforms where your audience is most active and regularly post valuable

Promote your agency locally. As you consider how to start an independent insurance agency, there’s something to be said for “old-school” networking. Insurance is a relationship-based business, so get out and build those bonds. Attending community events, joining referral groups and even teaming up with real estate agents and lenders will get your name out there.

Use email to stay top of mind. Email could become one of your best friends because it serves as a vehicle for so many types of messages. Use your digital marketing tools to share newsletters, renewal reminders and review requests. Email opens one more line of communication with prospects and clients and creates year-round visibility.

Plan for Long-Term Scalability and Growth

As your independent insurance agency gains traction, make a plan to maintain the momentum and deliver consistent service. Your team and operational processes will help you sink or swim.

Grow your team intentionally. Prioritize roles that will have the biggest impact on your agency. You might start by adding support staff to handle administrative tasks or producers who can help grow your book of business. Focus on bringing in people who align with agency values and can free you up to nurture client relationships.

Build consistency as you scale. Create your winning recipe for repeatable success. Document your workflows – such as quoting, onboarding, renewals and claims support – so teams can hit the ground running. Integrate role-based tools to keep everyone aligned and reduce overlap. But never say you’re done, either. Refine your processes as needed to stay agile as you grow.

Choose the Right Tools from Day 1

Building an effective tech stack is one of the smartest investments when you’re trying to figure out how to start an independent insurance agency. It could mean the difference between smooth operations and total chaos.

Pick an agency management system (AMS). Make your AMS the heart of everything. Choose a solution capable of :

• Quoting and servicing policies
• Renewals
• Marketing campaigns
• Performance reports

Ideally, your system should support seamless integration across carriers to simplify client and policy management and boast automation features to save time on routine tasks, such as follow-ups and review requests.

Track growth and profitability. Scale faster and deliver better service. Empower your agency to make data-driven decisions by selecting tools that dig into your performance across carriers and product lines via commission tracking, reporting and even renewal management.

Learn How to Start an Independent Insurance Agency with EZLynx

Make a splash in your community by starting your own agency. It may be a leap, but with detailed plans to build and grow your business – and an innovative, customer-first partner by your side – you’ll be well on your way toward a profitable future.

EZLynx stands ready to support you with features to help independent agencies grow. Our all-in-one AMS for independent insurance agents brings comparative ratings, policy management, lead tracking, workflow automation and reporting under one roof to support efficient operations.

Download our EZGuide, “How to Become an Independent Agent,” for additional insights – and get in touch to learn why thousands have trusted EZLynx to grow their agencies.