Independent Contractor Agent Looking for Advice.

[BerryIntl]

Hello All!
I'm currently an captive Independent Contractor Agent and I'm looking at starting, not my own company, but my own agency to sell the products that I currently market. I want to be able to hire and train employees to help me with soliciting business and doing the paperwork. I first had the idea when I noticed that many State Farm, Allstate, and Farmer's Insurance Agents have their own Corporation - for instance 'John Berry Inc.' I wanted to know if any of you could help me with the specifics as to what is required and prohibited. Also, licensing requirements, corporation requirements, and how to go about getting set up. I appreciate your time and help. By the way, I'm not associated with the above mentioned companies, so I find it awkward to ask one of them how it works. The company I represent doesn't give any advice as far as opening my own agency.
Thank you.

 

[Ranger]

Depending on your state's laws, you will probably need to apply for an agency license via your state's Department of Insurance (the same place you got your state's producer license). You will have to see an attorney to set up a corporation or go to one of the websites like legalzoom.com. You probably will be better off forming an LLC.
Forming the corporation or LLC (limited liability corp) will help absorb some of the financial responsibility if you are sued. Not just for E&O problems but from somebody tripping on your doorstep when they visit your office. (Or you run over their dog when you visit their home.) You will also need business general liability insurance. If you are going to send any of your staff on errands, etc. make sure you have the proper coverage in the event that they have an accident while on a work related trip.
Usually called "non-owned" auto coverage.

 

[BerryIntl]

Thank you Ranger. I appreciate your help.