What Are my Options to Work for Another Agency, but Own the Book of Business?

Discussion in 'General Insurance Agent Discussions' started by Comanche, Aug 10, 2017.

  1. Comanche
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    Comanche New Member

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    Hi there,

    I am wondering what my options are to work for another agency, but own the book of business?

    Right now, I'm a producer for a captive agency, recently got my 2-20 license, and I want to start preparing to open an independent agency. However, I have realized that getting a good number of appointments is difficult. Is it possible to work for another agency, and own my book? What would it look like? Would I be an employee? Or a non-paid "partner", only paid commissions direct from carriers? Would I form my own entity name? Carry my own E&O? Would the declarations have my name/entity name or the agency's name? If in the agency's name, instead of my own would that prevent me from getting direct appointments in the future, since the book is (not yet) in my name? Would I have get a non-producer direct appointment with the carriers my insureds are with, roll the book, and then apply for producers appointment? I don't know much about the appointment process, so maybe my questions don't even make sense.

    Any help, including links to more information, is appreciated.

    Thank you,
     
  2. VolAgent
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    VolAgent Well-Known Member

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    The answer to just about everyone of your questions is, it depends.

    All of that would need to be settled in a contract between you and the agency.

    The real question is, why would an agency agree to this? What is in it for them?

    Until you can answer that question such that an agency owner would want to partner with you, the rest is moot. And you want to be able to answer it such that an agency YOU want to partner with will see value in it.
     
  3. DHK
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    DHK Well-Known Member

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    Buy it from them.
     
  4. indienoise
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    indienoise Well-Known Member

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    Some very different ways to approach this.
    If you're looking for a salary, you will be an employee and doubtful you will have any ownership of your book.
    If you are a commission-only producer for an agency, you may be able to negotiate vesting, the ability to take your book with you, or ability to buy-out.
    In both of these cases you shouldn't need your own e&o or entity.
    However if you start an agency and just deal with wholesalers, you will own your book but will have no real guidance, need your own e&o, etc.
    You could also talk to clusters/groups of you want your own agency, but then you are essentially giving away some ownership (even though they will tell you that you're not)
     

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