Four Important Steps to Starting Your Own Casualty Insurance Agency
Casualty insurance is highly valuable to the people who have it because it protects them from certain liabilities if they cause an injury to another person. Especially popular among business owners, casualty insurance is often paired with property insurance that protects belongings not covered under a traditional policy. If you are planning to start a casualty insurance agency, there are certain steps that you will have to follow. Here is a look at four of the most important steps that will be involved in starting a casualty insurance agency.
1. Obtain your casualty insurance agent certification.
To become a casualty insurance agent, you are required to have some formal classroom training. Exactly what training you will need to become certified will depend on what your state requires. You don't necessarily have to have this certification to start an agency if you plan to hire certified agents, but it will definitely be valuable for you, the owner, to figure that out beforehand.
2. Create a professional business plan.
Starting your own casualty insurance is going to take quite a bit of business capital during the beginning to get your business off the ground. Therefore, it is likely that you are going to have to either find an investor willing to support your business development or find funding in the form of a business loan. Before either will take you seriously, you will need to have a well-put-together business plan.
3. Get the proper licenses, permits, and tax identification for your business.
Just as it is with any other type of business, you will have to go through certain processes to get your agency recognized on a state and federal level. You should create an agency name and register that name as a business. You will have to look into what licenses and permits will be required for operating that business in your state. Lastly, obtain a tax identification number from the Internal Revenue Service (IRS) for your new agency.
4. Research your competition in the casualty insurance field.
Casualty insurance is a less popular form of insurance products, but you will have competitors no matter where you operate. You should get really familiar with the policies and coverage options they offer and find out how you can compete against what they have to offer. If you can't compete through offering differing products, look at competing by upping your marketing and customer service plans, offering discounts, and being highly accessible.