New Agent - Several Questions

[mkennedy]

I am a newly licensed Texas agent with quite a few questions; I have found an abundance of information on this site and am thankful!

1. Can anyone explain to me the difference (pros/cons) of an independent agent versus an agency? Off the top, it appears as a difference in how you state the name, but common sense tells me there's more to it than that.

2. I've seen Insurance Noodle and Superior Access recommended, are there other options available and what are some important things to look for in evaluating these companies?

 

[HomeService]

You must be talking about P&C. Do you plan on going on your own as a newbie in P&C? I tried it. It was hard to get E&O and carriers as a newbie. This is why Superior Acess is recommended.

 

[jhplat5685]

Indy - You have all the freedom and headaches of running your own business. You can sell various carrier's products. You will have no manager, no proper training, and no stipend. You will determine whether you live or die in this business

Agency- I am assuming you mean captive? You will still be a business owner but with the backing off a company. Most will provide you with some training, back office support, and maybe even some money to get your business off the ground. However you will be tied to selling one carrier's products whether competitive or not. They may also chose to non-renew your contract if you do poorly.

 

[mkennedy]

HomeService - yes, P&C Indy as a newbie - somewhat scary, but much more suited to my customer-service style in being able to offer competitive premiums from multiple companies. In my efforts to locate information, this is the first place I landed.

I should clarify that I am not interested in being held in captivity! My question refers to this - some agents list themselves as "So N. So, Independent Agent" while others are listed "So N. So Insurance Agency." I am assuming there is quite a difference in these two, but am having a difficult time determining what that difference is. I have a feeling it is somewhat like the relation of sole proprietor vs. S-Corp when considering how to form a small business structure.

If E&O is difficult to come by for a newbie-indy, can anyone offer suggestions for a company that would be willing to write such a risk?

Thanks to everyone!

 

[TwiLight]

HomeService - yes, P&C Indy as a newbie - somewhat scary, but much more suited to my customer-service style in being able to offer competitive premiums from multiple companies. In my efforts to locate information, this is the first place I landed.

I should clarify that I am not interested in being held in captivity! My question refers to this - some agents list themselves as "So N. So, Independent Agent" while others are listed "So N. So Insurance Agency." I am assuming there is quite a difference in these two, but am having a difficult time determining what that difference is. I have a feeling it is somewhat like the relation of sole proprietor vs. S-Corp when considering how to form a small business structure.

If E&O is difficult to come by for a newbie-indy, can anyone offer suggestions for a company that would be willing to write such a risk?

Thanks to everyone!

Your best bet is to join your State BIG I association. They will assist you in many independent agent do's and don'ts. cost is about $500 a year in most States, with one Agent and Clerical person. Most BIG I associations have their own insurance agency that markets certain products to the members, including a solid E&O policy. A newby can expect to pay $1500 per year, including P&C, and incidental L/A&H.

For the TX BIG I, go to: Independent Insurance Agents of Texas

 

[mmaedelins]

I believe this is the answer to your original question:

When someone lists themselves as Independent Agent, it means they are completely on their own, as was stated in a previous answer, but they work through an agency who is already established.

When someone lists themselves as an Insurance Agency, they are the owner of the agency and usually have agents working for them.

If you don't want to go captive, I would definitely recommend finding a local agency to take you on as an Independent Agent. The training may not be as extensive as when you go captive but you can usually utilize their office space, office managers and carriers. Leads are generally your responsibility though. And, the best part is, you usually own your book of business.

Best of luck!

 

[HomeService]

Yes, I think the answer to your original question is: you can be both. "Mr. Joe Jones, independent agent , owns Joe Jones agency..." or something....

 

[Guest]

Your making a big deal out of nothing, an agent is the person in the business, agency..


I.E. I have a licensed AGENT who works for me in my AGENCY.