Starting my Own Insurance Agency - HELP!!

[Misr]

I am newly licensed and have a very interesting opportunity.

My CPA's daughter is planning to get her license next year. My CPA approached me with an interesting idea. He has 10,000 clients. He wants to form an LLC with me (I'm P&C/L&H licensed). She would work under me and we'd slowly build the business

He wants to set up his own insurance agency (me as partner) to service his client database, and have work for his staff to do off season.

If anyone could provide pointers on the following it would be really helpful

1) Database management software (estimated pricing)
2) multi-quote software
3) estimate of E&O or where we would get it as a start -up

I'm already licensed in our home state and the surrounding where he has clients. I know I would need to request licenses in the company name, set up the LLC &TIN etc.

Thank you!

 

[Matthew King]

I am newly licensed and have a very interesting opportunity.

My CPA's daughter is planning to get her license next year. My CPA approached me with an interesting idea. He has 10,000 clients. He wants to form an LLC with me (I'm P&C/L&H licensed). She would work under me and we'd slowly build the business

He wants to set up his own insurance agency (me as partner) to service his client database, and have work for his staff to do off season.

If anyone could provide pointers on the following it would be really helpful

1) Database management software (estimated pricing)
2) multi-quote software
3) estimate of E&O or where we would get it as a start -up

I'm already licensed in our home state and the surrounding where he has clients. I know I would need to request licenses in the company name, set up the LLC &TIN etc.

Thank you!

1) are you just looking for a Insurance Agency Management Software (CRM)?

2) What products are you looking to quote, specifically?

3) Are you looking at just covering yourselfs by using the company or each individually?

4) Are you going to be re-contracting in the Company's name with you as the principal or keeping your current appointments but tying into a new bank account?

 

[Misr]

I would be looking for the software to manage leads, existing clients, track require paperwork, conservation information etc. I'd also like one that would allow us to secure multiple quotes from up to say 5 carriers
Ideally I'd like an all-in-one system.

The products he'd like to offer
1) Life
2) Health
3) Disability
4) Long term care
5) business liability - just about any commercial coverage for small business, most of his clients are 20 employee or less business owners

I do not understand question 3

I would need to have the company licensed, then appointed with carriers

 

[xrac]

The biggest issue you probably will face is securing P&C carriers.

 

[DHK]

I'm still curious why an experienced CPA would want to partner with a newly licensed agent to serve the CPA's clientele? Why not find someone with more experience?

Without really knowing this, the newly licensed agent may be subject to being "pushed around" by the CPA knowing that without their clients, they essentially "own" you.

 

[Misr]

any suggestions on how to secure appointments with P&C carriers

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sorry, hit reply too fast. When I asked how to secure appointments with P&C carriers, I'm wondering should I partner with an established agency or something?

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I've been a client with the CPA for 15 years. He knows me well, I approached him. He likes the idea, trusts me, and wants to know what we need to do. This will help when his daughter is licensed too.

 

[xrac]

I'm still curious why an experienced CPA would want to partner with a newly licensed agent to serve the CPA's clientele? Why not find someone with more experience?

Without really knowing this, the newly licensed agent may be subject to being "pushed around" by the CPA knowing that without their clients, they essentially "own" you.

That is a very good question. Why you with no experience and no carriers? Once the CPA understands what is involved in getting carriers who may have different thoughts. If I were a CPA I would not select a newby to undertake this no offense intended.

 

[DHK]

I've been a client with the CPA for 15 years. He knows me well, I approached him. He likes the idea, trusts me, and wants to know what we need to do. This will help when his daughter is licensed too.

Hmmm... I'm thinking of Mitt Romney regarding Trump. Just because Mitt wanted Trump's endorsement for president in 2012, doesn't mean that Mitt would endorse Trump for 2016.

Just because you're a client, doesn't necessarily mean that you're an ideal business partner... and the reverse is also true. Just because he's a CPA does not mean he would be an ideal business partner.

Btw, do not confuse sincerity with competence. That goes for both sides. He may TRUST you to be sincere with his clients, but you can still be sincerely... wrong. Competence, sincerity, and genuineness is a great combination, but without competence, you BOTH will need to double-check your E&O coverage.

Just splashing a bit of reality to the situation. I hope I'm wrong for you.

 

[VolAgent]

What I don't get is, why you?

Also, if you are already licensed, you should know how difficult appointments are to get in P&C, especially commercial.

You will almost certainly need to use an MGA and/or join a cluster or aggregator for that.

To be perfectly frank, your questions make it seem as if you are very inexperienced, which leads me back to the first question, why you? So what if he has been your CPA for 15 years, have you been doing insurance this long?

There are a lot of CRMs out there that can help with all this. As to the quoting, you will likely need a different piece of software for life, health, DI and LTC. As to quoting commercial, I am not aware of any comparative raters for commercial, you will be submitting apps to the MGA and waiting for quotes. Also, you will need to piece together enough MGAs to cover the entire spectrum of businesses that he works with and refers to you.

 

[kgmom219]

I'd want to know what happens to my book if I get canned. They are HIS clients. So if he kicks you to the curb, what happens to the policies? He hires someone else and you wasted all this time and have to start from scratch building a book? Will the commissions be paid to the LLC?

I've been doing this too long.

I have trust issues.