Does It Matter for a P&C Starter; Working for a Captive or Independent Agency?

FL_PC

Expert
48
Florida
Hello,
I am looking for agencies to work for. It will be my first company and experience. Eventually, I want to go on my own (with my own book) after a while.
Should I work for Captive or Independent? Does it make difference?
If not, which captive? How about State Farm?
Thanks in advance
 
Seems like you have been asking the same question on the forum for the past 2 years.

In Florida I would recommend going to work for an independent agency.
 
Thanks for the response. I might have asked the commission/pay rates more than once but this question is a new one. Trust me :yes:
 
I say it depends on your experience. If you've never worked in insurance before, go captive with a company that offers a salary and is going to train the hell out of you and require you to sweat blood. After you get a feel for it, quit and go independent. That way, if you can't hack it with captive, at least you're only out your time instead of thousands of dollars starting from scratch.
 
I say it depends on your experience. If you've never worked in insurance before, go captive with a company that offers a salary and is going to train the hell out of you and require you to sweat blood. After you get a feel for it, quit and go independent. That way, if you can't hack it with captive, at least you're only out your time instead of thousands of dollars starting from scratch.

Ok, let me clarify my case so that I get the right diagnosis and cure;

I have zero experience and need to start from somewhere.

I am going to start working for the first time as a p&c producer. I got an offer from a state farm agency/agent that %3 commission (of premium), no renewals and 25K salary.

On one side, it is a good starter job opportunity but on the other side, I will want to go and open my own agency and be able to contact my existing clients. This is important because I will use all my client resources/environments and I am afraid that I will have to forget about them. The SF agency will get the benefit and I will have to build a new book.

I need advice on this.
Is it a good deal? Does it matter if I work for an individual agent?
Am I thinking the right way?What should I do?
 
You are going to need to give something up in exchange for training. The state farm offer is asking you to give up renewal comission and the ability to take your clients later.

Maybe you can find an independent agent that will let you take (read: buy) your clients when you are ready to start on your own. You will have to call around to find this though because most don't put out ads or contact monster.com resumes looking for you. You also won't get a salary at most independent agencies.

Just take the state farm offer and learn as much as you can about the business and how to generate business. At least you will be guaranteed $25k.
 
Let me clear this up for all the newbies coming into the P&C biz.

Owners/Managers/Principals do not want to hire someone just to have them leave in a year or two. We are not going to to train you, let you use our office, leads, supplies, staff and business process just for you to pick up in 2 years and take your book with you. That being said, you might be able to find an independent who will let you buy your book. I wouldn't even think about it for anything less than 2x commissions.
 
Greetings everyone.
New guy with first post.
I have only been an pc agent for 5 months so take my advice with a grain of salt. I went to work for an new indy in my town. They were looking for new agents so I got my license and went to work part time for them. No salary and 50% of premiums and reups. I did it because I new I needed to learn the buisness. Once I started I found out that nobody new anything about running a buisness. In a way I ended up kinda running the office. I was just part time because I had my own buisness. I had to go out of town on buisness and when I got back the company was already out of buisness and I lost everything I had invested into it.
My advice is to take the job with the salary and learn everything and consider the things you think you are giving up as payment for your education. OR
you can go with a company like SAIS and get yourself some cheap E/O insurance and try to learn as you go. It will be 2 months before you see your first commision check and you will have some fees for that service, but you will own your own book. I have a friend that is trying this out and he is having a tough time at it.
I went with a captive agent, that has been in buisness for 25 years, working part time for full % no salary and no book and he has agreed to teach me everything he knows. Not a great deal but I think I will come out ahead.
Great forum.
 
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