insurance producer business plan

Insurance Agency Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 3,000 entrepreneurs and business owners create business plans to start and grow their insurance agencies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an insurance agency business plan template step-by-step so you can create your plan today.

Download our Ultimate Insurance Business Plan Template here >

What is an Insurance Agency Business Plan?

A business plan provides a snapshot of your insurance agency as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Insurance Agency

If you’re looking to start an insurance agency or grow your existing insurance agency you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your insurance agency in order to improve your chances of success. Your insurance agency business plan is a living document that should be updated annually as your agency grows and changes.

Source of Funding for Insurance Agencies

With regards to funding, the main sources of funding for an insurance agency are personal savings, credit cards, bank loans, and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate the business.

The second most common form of funding for an insurance agency is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund an insurance agency unless it is based on a unique, scalable technology.

Finish Your Business Plan Today!

Your insurance agency business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of insurance agency business you are operating and the status; for example, are you a startup, do you have an insurance agency that you would like to grow, or are you operating multiple insurance agency locations already.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the insurance agency industry. Discuss the type of insurance agency you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of insurance agency you are operating.

For example, you might operate one of the following types:

• Direct Writer / Captive : this type of insurance agency only sells one insurance company’s products – like Allstate or State Farm
• Independent Insurance Agent : this type of insurance agency is privately-owned, and sells policies with may different insurance companies

In addition to explaining the type of insurance agency you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new location openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the insurance business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the insurance industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards weather-related policy purchases, it would be helpful to ensure your plans call for flood insurance options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your insurance company business plan:

• How big is the insurance agency business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key insurance carriers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your insurance agency. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your insurance agency business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, households, businesses, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of insurance agency you operate. Clearly baby boomers would want different pricing and product options, and would respond to different marketing promotions than recent college graduates.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most insurance agencies primarily serve customers living in their same geographic region, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Insurance Business Plan in 1 Day!

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With Growthink’s Ultimate Insurance Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other insurance agencies.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes self pay and public (Medicare, Medicaid in the case of health insurance) insurance or directly working with an insurance carrier. You need to mention such competition to show you understand that not everyone who purchases insurance does so through an insurance agency.

With regards to direct competition, you want to detail the other insurance agencies with which you compete. Most likely, your direct competitors will be insurance agencies located in your geographic region.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior insurance agency products/services?
• Will you provide insurance agency products that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an insurance agency business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of insurance agency that you documented in your Company Analysis. Then, detail the specific products/services you will be offering. For example, in addition to P&C insurance, will you also offer life insurance?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your insurance agency. Document your location and mention how the location will impact your success. For example, is your insurance agency located next to the Department of Motor Vehicles, or a heavily populated office building, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your insurance agency marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your insurance agency’s front store extra appealing to attract passing customers
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations (e.g., auto dealerships or car rental stores)
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your insurance agency such as serving customers, procuring relationships with insurance carriers, negotiating with repair shops, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your 500th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your insurance agency’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the insurance agency business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in insurance agencies and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you acquire 20 new customers per month or 50? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your insurance agency location and/or website, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an insurance agency:

• Location build-out including design fees, construction, etc.
• Marketing expenses
• Website development
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Insurance Business Plan Summary

Putting together a business plan for your insurance agency is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the insurance agency business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful insurance agency.

Download Our Insurance Business Plan PDF

You can download our insurance business plan PDF here . This is a business plan template you can use in PDF format.

Insurance Business Plan FAQs

What is the easiest way to complete my insurance business plan.

Growthink's Ultimate Insurance Business Plan Template allows you to quickly and easily complete your Insurance Business Plan.

Where Can I Download an Insurance Business Plan PDF?

You can download our insurance business plan PDF template here . This is a business plan template you can use in PDF format.

Don’t you wish there was a faster, easier way to finish your Insurance business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing services .

Other Helpful Business Plan Articles & Templates

Insurance Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Insurance Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Insurance Agency Business Plan

You’ve come to the right place to create your own business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their insurance companies.

Essential Components of a Business Plan For an Insurance Agency

Below we describe what should be included in each section of a business plan for a successful insurance agency and links to a sample of each section:

• Executive Summary – In the Executive Summary, you will provide a high-level overview of your business plan. It should include your agency’s mission statement, as well as information on the products or services you offer, your target market, and your insurance agency’s goals and objectives.
• Company Overview – This section provides an in-depth company description, including information on your insurance agency’s history, ownership structure, and management team.
• Industry Analysis – Also called the Market Analysis, in this section, you will provide an overview of the industry in which your insurance agency will operate. You will discuss trends affecting the insurance industry, as well as your target market’s needs and buying habits.
• Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
• Competitive Analysis – This section will provide an overview of your competition, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your insurance agency from the competition.
• Marketing Plan – In this section, you will detail your marketing strategy, including your advertising and promotion plans. You will also discuss your pricing strategy and how you intend to position your insurance agency in the market.
• Operations Plan – This section will provide an overview of your agency’s operations, including your office location, hours of operation, and staff. You will also discuss your business processes and procedures.
• Management Team – In this section, you will provide information on your insurance agency’s management team, including their experience and qualifications.
• Financial Plan – This section will detail your insurance agency’s financial statements, including your profit and loss statement, balance sheet, and cash flow statement. It will also include information on your funding requirements and how you intend to use the funds.

Next Section: Executive Summary >

Insurance Agency Business Plan FAQs

What is an insurance agency business plan.

An insurance agency business plan is a plan to start and/or grow your insurance business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your insurance agency business plan using our Insurance Agency Business Plan Template here .

What Are the Main Types of Insurance Companies?

There are a few types of insurance agencies. Most companies provide life and health insurance for individuals and/or households. There are also agencies that specialize strictly in auto and home insurance. Other agencies focus strictly on businesses and provide a variety of liability insurance products to protect their operations. 

What Are the Main Sources of Revenue and Expenses for an Insurance Agency Business?

The primary source of revenue for insurance agencies are the fees and commissions paid by the client for the insurance products they choose.

The key expenses for an insurance agency business are the cost of purchasing the insurance, licensing, permitting, and payroll for the office staff. Other expenses are the overhead expenses for the business office, utilities, website maintenance, and any marketing or advertising fees. 

How Do You Get Funding for Your Insurance Agency Business Plan?

Insurance agency businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Other options for funding are outside investors, angel investors, and crowdfunding sources. This is true for a business plan for insurance agent or an insurance company business plan.

What are the Steps To Start an Insurance Business?

Starting an insurance business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Insurance Business Plan - The first step in starting a business is to create a detailed insurance business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your insurance business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your insurance business is in compliance with local laws.

3. Register Your Insurance Business - Once you have chosen a legal structure, the next step is to register your insurance business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your insurance business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Insurance Equipment & Supplies - In order to start your insurance business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your insurance business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful insurance business:

• How to Start an Insurance Business

Where Can I Get an Insurance Business Plan PDF?

You can download our free insurance business plan template PDF here . This is a sample insurance business plan template you can use in PDF format.

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Launch Your New Insurance Agency With This Business Plan Template

Whether you're a brand new agent or one with several decades of experience, the idea of opening a new insurance agency probably seems daunting—where do you start?

One of the first things you’ll need to do is come up with a business plan for your insurance agency. After all, you can walk into a bank or a potential investor’s office looking for funding, but you won’t get very far unless you have a robust insurance agency business plan that proves you’re on the right track toward turning a profit in the near future.

Follow the steps below when building out your insurance business plan to maximize your chances of securing funding and getting your new agency off to a strong start.

7 Steps To Build Your Insurance Agency Business Plan

1. develop your executive and business summaries..

In business plan terms, the executive summary is the driving force behind your other decisions. It should explain why you’re starting your agency. The business summary is similar, but it should narrow down your “why” into a list of “hows.”

Ask yourself:

• Why do you want to open an agency?
• What types of insurance do you wish to sell?
• What do you hope to accomplish?
• What return on investment do you expect to receive?
• How are you going to generate demand and ensure supply for your service?

Jot your answers down so you can refer back to them as you move forward.

2. Decide whether you want to be a captive agent or an independent agent.

Many large agencies, such as Allstate and Farmers, work with captive agents who can only sell insurance for that specific provider. Independent agents, on the other hand, can sell insurance for multiple providers, but they get locked out of working with the big-name captive carriers who only work with captive agents. (Read more about captive agents here and get a seasoned agent’s POV on both types of agents here. )

Before you can nail down the details of the rest of your business plan, you’ll have to make a choice between these two options.

3. Do a market analysis.

Though it might seem like a tedious process, conducting a thorough market analysis is crucial to your success. Analyzing your local market—including the backgrounds, shopping behaviors, and preferences of your target customers—gives you the insights you’ll need to attract these folks to your business.

Your market analysis will look a little different depending on whether you prefer to be a captive or an independent agent. The state you live in is another factor that will affect your analysis—in fact, it may even influence your decision to be captive or independent.

Take a close look at the demographics of your region.

• How many homeowners live in your state?
• What’s the average insurance premium per home?
• How many people live in each home, on average?
• How many drivers live in your state?
• How many vehicles does the average household own?
• Do you live in an area with an aging population ?
• How many families live in your region?
• What insurance carriers do locals in your state gravitate toward?
• In your area, what might be some successful strategies for retaining clients (rather than just acquiring them)?

These questions are all important, but pay particular attention to the last one. If you open an agency without a plan for client retention, you’re going to struggle. And, unfortunately, this is one of the most overlooked aspects of an insurance agency business plan.

4. Identify where you’ll find your first clients.

It’s one thing to know there are X number of potential clients living in your state, but it’s quite another to have a plan that will help you reach out to those folks and land your first policy sales.

Some investors will require a list of leads before they’ll even consider funding your agency. Even if it’s not a requirement, it’s always a good idea to have a pipeline ready to go. This is where getting set-up for purchasing warm leads from EverQuote can put you in a great position for success.

Plus, tackling this step before you even open your doors will help you better understand the costs you’ll incur—and therefore how much startup funding you will need.

You might also consider other options, such as placing ads in local newspapers, going to networking events, investing in digital marketing, sponsoring local Little League teams, or asking for referrals.

5. Create a financial plan.

Many new agencies fail because their owners overlooked something critical during startup. Do your best to look at your financial plans from every angle:

• Where will you find leads, and how much will they cost?
• What is your advertising budget?
• Does this budget line up with the going rates of local newspapers, billboards, or online ads?
• Do you plan to have 1099 employees or W2 employees selling insurance for your agency?
• How will you decide on a commission and benefits structure for these employees?
• What retention and loss ratios (for clients and employees) do you expect based on the numbers of other agencies in your area?
• How will you handle the delay between policy renewals and income hitting your bank account?
• If there are X amount of people shopping for insurance in your area, what percentage of those people are in a niche you can serve?
• From that percentage of potential clients, how many do you think you can successfully land?
• If you sell policies to these customers, how much will you earn from their premiums?
• How do your projected profits compare to your expected advertising costs, the cost to buy leads, office rent, and other expenses?

Take detailed notes of your calculations, and try to run the numbers a few different ways to obtain a conservative outcome, a likely outcome, and a “best case scenario.”

6. Draw up a formal business plan using a proven format.

Your notes will be incredibly valuable as you move forward, but you’ll need a way to present them clearly and concisely in a way that looks attractive to investors.

Loan officers and investors don’t want to read long-form essays detailing your business background and your ideas for the future. Keep your format simple and straightforward, with clear sections that answer the questions investors will want to know.

We recommend a format similar to the following:

Executive Summary Overall mission Primary objectives Keys to success Financial plans Profit forecast for at least three years Business Summary Business overview Summary of startup costs Funding you’ll require Company executives/ownership Services Services you provide Market Analysis Overall business analysis Details of your competition Buying patterns of your competition Your planned buying patterns Market segmentation and analysis Target market strategies Include details for each market segment Strategy Your competitive edge Marketing strategy Sales strategy Yearly sales projections Key milestones Management Your plan for finding staff Financial Plan Funding you have accepted Funding you will need Detailed startup costs Calculations for your break-even point Projected profit Yearly profit Gross and net yearly profit Anticipated losses, if any Cash flow patterns Plans for balance sheet Calculations of important business ratios

7. Revise and adjust your plan over time.

You may not secure funding for your agency immediately. Even if you do, you’ll likely find that your real world numbers don’t match up exactly with your calculated projections. Plus, carriers frequently change their underwriting policies, and the economy itself is always in a state of flux.

Keep your business plan current by updating the information anytime circumstances change.

Start your journey with a full lead pipeline from EverQuote.

One of the scariest parts about starting a new agency is not being certain where and when you’ll be able to start making sales.

Skip the fear and the unknown and go right to making sales with warm real-time leads from EverQuote. Whether you’re still trying to find startup funding or your doors are already open, you can always boost your business and maximize your chances of a steady income by working with EverQuote.

Connect with us today.

Topics: Featured , Insurance Agency Growth

About the Author Chris Durling, VP of P&C Sales

Chris Durling is a visionary leader in P&C insurance sales and distribution, with over 10 years of experience in the industry.

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How To Write an Insurance Company Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for insurance companies that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every insurance company owner should include in their business plan.

Download the Ultimate Insurance Business Plan Template

What is an Insurance Company Business Plan?

An insurance company business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an Insurance Company Business Plan?

An insurance company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Insurance Company Business Plan

The following are the key components of a successful insurance company business plan:

Executive Summary

The executive summary of an insurance company business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your insurance company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your insurance company , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your insurance company firm, mention this.

You will also include information about your chosen insurance company business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of an insurance company business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the insurance industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of an insurance company may include individuals, families, small businesses, and large corporations.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or insurance company services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your insurance company may have:

• Specialized industry knowledge
• Proven track record
• Strong customer relationships
• Robust product offerings
• Innovative solutions

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. 
• Or, you may promote your insurance company business via word of mouth.

Operations Plan

This part of your insurance company business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an insurance company include reaching $X in sales. Other examples include expanding to a new geographic market, launching a new product or service line, or signing on new major customers.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific insurance industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Insurance Company

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Insurance Company

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup insurance company business.

Sample Cash Flow Statement for a Startup Insurance Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your insurance company . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it. All in all, a business plan is a key to the success of any business.  

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How to Start an Insurance Company

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1. Become a licensed insurance agent

2. write a business plan, 3. choose a business structure, 4. register and license your business, 5. get business insurance, 6. form relationships with insurance companies, 7. grow your client base.

Starting an insurance agency is a lot like starting any business . You’ll need to choose a business structure, register and license your business, get insurance and more.

But you’ll also need to become a licensed insurance agent and learn how to navigate a highly regulated field.

Here’s how to get started.

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Tell us where you're at in your business journey, and we'll direct you to the experience that fits.

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You can get an insurance agent license in a matter of weeks or months, depending on the requirements in your state. Here are the steps to follow:

Learn about your state’s licensing process. The National Insurance Producer Registry or your state’s branch of the Independent Insurance Agents and Brokers of America can help you understand those specific requirements.

Decide what type of insurance to sell. You can be licensed to sell several different “lines of authority” or types of insurance. The most extensive lines of authority include:

Accident and health or sickness.

The names of these lines of authority may differ in your state. You can be licensed to sell multiple lines of authority. Life and health are often offered as one package, as are property and casualty.

In general, most types of business insurance are property or casualty policies. With a property and casualty license, you can sell personal and commercial insurance . Most agents choose to specialize in one or the other, though.

Take a pre-licensing class. Your coursework should focus on the type of insurance you choose to specialize in. Courses can be done in person or online in most states.

Schedule your licensing exam. These are usually administered at testing centers run by third-party testing companies, which may immediately inform you of the results.

Apply for your license. Submit your licensing application to your state’s governing body. You’ll need to provide personal information, such as your Social Security number, date of birth and residency information, and pay any applicable fees. If your application is approved, you’ll be able to sell insurance products.

If you’re new to selling insurance, you may want to get some experience working for an insurance company or another brokerage before venturing out on your own.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Your business plan outlines what you want your business to look like and how you plan to get there. The process of writing it should force you to answer complex questions, like what unique value you’ll offer customers and how much money you’ll need to get started.

» MORE: NerdWallet's picks for the best business plan software

Your business structure determines how your business profits are taxed and how your personal and business assets are kept separate, among other things.

There’s also an insurance-specific question you’ll need to answer: Whether you want your insurance agency to work with one specific insurer or with many different providers.

Captive agents (agents who work with a particular insurance company) can benefit from brand recognition and don’t have to convince insurers to work with them. But, on the other hand, they can only sell a limited suite of insurance policies. For example, State Farm works with a network of independent contractor agents who run their agencies but only sell State Farm products.

Many other insurance agency owners are independent agents, selling products from multiple insurance companies. Independent agents might have to work harder to establish and market their brand to customers and insurers, but they can start relationships with many insurance providers.

Before running your business, you’ll need to register with your state, typically with the secretary of state’s office.

Most insurance businesses will probably need to apply for an employer identification number from the IRS. With an EIN, you can open a business checking account .

As part of this process, make sure to obtain a business license, a sales tax permit and any other documents your state or city requires.

Your business entity may also need a license from your state's insurance department. Check your state’s requirements to find out what you need.

» MORE: Everything you need to do to start a business

As an insurance agent, you already know how important it is for your customers to be fully insured. Get business insurance to protect your business assets.

Most insurance companies are likely to need professional liability insurance and general liability insurance . Depending on your agency’s size, location and day-to-day activities, you may also need commercial auto insurance, workers’ compensation insurance and other types of business insurance.

If you’re an independent agent, you’ll need to apply to work with any insurance companies whose products you want to sell. If they approve your application, they’ll grant you an appointment to sell their policies.

It can be challenging to start relationships with insurance companies directly without having several years of experience and a client base.

Joining a professional association, like the Independent Insurance Agents and Brokers of America, or an agent network like Smart Choice, can help you access insurance providers to sell their policies. These groups may also provide marketing materials, discounts on your business insurance policies, and other resources.

If you choose to start an independent agency, you may have to hustle for your first few clients. Start by joining your local Chamber of Commerce, attending networking events and advertising in your local market.

Having an online presence is essential, too. Make sure your website clearly outlines what kinds of insurance you sell and the customers you serve. Information about how to contact you should be easy to find.

If you start an agency affiliated with a particular insurance company, you might get referrals as customers seek out agents near them. However, you’ll probably need to do local marketing too.

On a similar note...

How to Create a Business Plan for an Insurance Agency

If the adage is true that even the greatest enthusiasm is no substitute for planning, independent insurance agents know that both are required in order for an agency to succeed.

An insurance agency business plan is therefore essential, especially for brand-new agencies in addition to established firms. A thoughtfully developed plan provides you direction for your efforts and structure for ongoing business development.

Without a plan, all you have is good intentions – and those won’t get you where you want to go. A map, on the other hand, will.

With this in mind, let’s dive into how to create a business plan for insurance agents and the things you’ll need to do to set your agency on the path to success.

Why is an agency business plan important?

A well-constructed insurance agency business plan helps you to set realistic goals, define your needs for specific resources, and focus your attention on the essential must-dos for accelerating your business.

As the principal, you must continually refine your vision for what you ultimately want to achieve: the type of business you want to run, its operations, its cash flow, its culture, and its workflows. Then, you can list the necessary steps to reverse-engineer the ideal agency that you’ve pictured.

Not only will the business plan for your insurance agency serve as a tool for internal management and decision-making, but it’s also extremely useful in conveying the vision for your business to other parties. Among these are investors, lenders, and potential partners – and new insurance carriers will often want to review your agency’s business plan before they’ll partner with you.

It’s worth noting that over time, the business plan for an insurance agency can and will change, and the agency owner must be flexible in both thought and execution as a new agency is forged. For example, you may envision writing a large portion of your agency’s book of business in a certain line, and later discover that market conditions or intense competition will encourage you to pivot to other lines that may also prove profitable.

What should be included in the business plan for an insurance agency

Agency principals will create a comprehensive summary that mindfully considers everything from the agency’s location and target markets to the products it will offer.

To get started, let’s review the various sections that make up a comprehensive business plan, and how each section contributes to the overall plan’s effectiveness.

Your insurance agency business plan should run about 5,000 words, outlining the following in detail:

• An executive summary detailing your “vision” for your agency
• Description of your company
• List of the insurance products your agency plans to offer
• Business analysis of your market
• Your agency’s marketing strategy
• Organizational structure
• Your agency’s financial plan
• Agency funding needs

If you’re already thinking, “I’m not a writer; I can’t do this,” fear not. You’re summarizing what you’re setting out to achieve and how you plan to get there – not writing a sonnet. Once you start writing, you’ll be surprised how far you’ll get.

The aforementioned word count, while a solid goal, isn’t set in stone. Don’t pad what you’re writing; stick to the facts. In the end, your business plan should be thorough, useful to you, and appealing to investors.

Let’s break down each of these sections one by one.

Executive summary

Think of this section as a concise overview of the overall business plan for your agency – your mission statement. Include highlights of your agency’s mission, goals, and its competitive advantage. Highlight your agency’s projected growth and potential profitability.

Be realistic and truthful in your assessments. It’s good to be optimistic, but not pie-in-the-sky level, especially for new agencies. Remember, you could find yourself answering to an investor sometime in the future.

Company description

Here’s where you explain what makes your agency special. Tell your story powerfully. What’s your vision for your organization? How would you describe your company culture ? How do you recruit new talent ?

What is your target market? What are your customer demographics? Who will be selling, and what are their strengths? How do you manage your relationships with your insurance carrier partners? What types of agency technology do you leverage in your customer service efforts?

Offer details on what you consider your unique selling proposition. Do you offer specialization in certain lines of business? If so, explain the inherent value in the expertise you possess.

Keep this question in mind as you write: What makes your firm exceptional, and why would someone want to invest in it?

List of products

The composition of your agency’s book of business is critical , and here you’ll lay out exactly what products you’re selling (or plan to sell). Provide a detailed breakdown of the insurance products and services offered by your agency, including a brief explanation of each product’s features and benefits.

In addition, include ideas for expanding your product lineup in years to come.

Market analysis

Investors and carriers alike want to know that you possess comprehensive knowledge of both your local insurance market and the forces influencing the wider industry. Offer analysis of your agency’s target market, including the demographics of your potential clients.

Then, provide a thorough analysis of the insurance industry’s current challenges and evolving exposures, with emphasis on how those trends affect the types of clients you serve. (This section doesn’t need to be exhaustive – again, don’t pad it – but it should reflect your macro perspective on the P&C market as well as how market forces will factor into your pricing and risk selection.)

Marketing strategy

How do you market your agency to prospects? Do you utilize digital marketing, social media, or create content that will resonate with potential customers? Community engagement is key in endearing your business to local prospects, as are networking events.

Detail your marketing strategy, and explain which types of outreach you’ve found most effective.

Note: As an agency owner it’s especially important to be flexible with your plans in this area, as certain approaches may prove less effective over time. When they do, you’ll need to pivot.

Organization and management

Effective leadership and a clear organizational chart will contribute greatly to your agency’s success. In this section, lay out your agency’s organizational structure – the hierarchy of your leaders. Include profiles of key team members, highlighting their various expertise.

Financial plan

Here’s where you begin to get more detailed on dollars and cents. Offer your realistic financial projections for your agency, taking into account expenses, revenue, and projected profitability.

Your projections should include a breakdown of any and all financial forecasts and possible variables taken into consideration. Contingency plans to address potential financial challenges should likewise be included.

Agency funding

Your agency’s financial needs are assessed in detail here. Apply your knowledge of what you want your agency to achieve, versus what it will cost. This includes (but is not limited to) rent, payroll, utilities, phone service, and business insurance.

Include the purpose behind each expenditure, and demonstrate how funding for your firm will be used to cultivate growth.

By the time this section is complete, you’ll have an informed understanding of exactly what it will cost to fund your organization – and how much you may need to borrow to manifest your vision. Provide an outline of potential sources of funding, including personal investments, loans, or investors.

What is the Best Business Structure for an Insurance Agency?

There are several business structures you can consider for your agency, each with various benefits. These include:

• Sole proprietorship
• Partnership
• Corporation

There are various legal, financial, and operational factors to consider in selecting the structure that’s best for you, which we’ll explore in greater detail in a future blog.

How your insurance agency business plan will evolve

As your agency evolves over time, so too will your firm’s business plan. It’s best to revisit and refine your overall plan at least every seven to 12 months, in order to chart your progress and adopt new strategies that will help to continuously drive revenue.

The path to agency success is long and at times extremely difficult, but thoughtful planning will aid your firm’s execution and growth for years to come.

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How insurance agencies can benchmark their success, how independent insurance agents can raise the bar on customer service, 4 strategies for growing your independent insurance agency.

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Crafting an Effective Insurance Agency Business Plan

If you're an independent insurance agent, you know that success doesn't happen by chance. It requires strategic planning and a clear roadmap for the future. That's where an insurance agency business plan comes into play. 

In this guide, we'll explore what a business plan is, why it's essential, and how to create one tailored to your home insurance agency.

At a glance:

• Crafting a well-defined insurance agency business plan provides strategic direction and goal-setting for success.
• A comprehensive business plan allows for adaptability in an ever-evolving industry.
• Defining your brand, researching funding options, and staying compliant with regulations, are the ingredients that can transform your business plan into an effective tool for growth.

Benefits of having a business plan

Having a solid roadmap is like holding a compass in a dense forest. It not only guides you on how to become a successful insurance agency, but also ensures you stay on course.

Strategic direction

So let’s continue that analogy: you’re on a road trip without a map, compass, or GPS. You might eventually reach your destination, but it would be a long and uncertain journey. Similarly, running an insurance agency without a business plan is like traveling without a guide. A well-crafted plan provides a clear path and helps you stay focused on your goals.

Goal setting

Setting realistic and achievable goals is vital for any business. Your insurance agency business plan acts as a compass, allowing you to establish clear objectives. Whether you want to increase your client base, revenue, or expand your services, a business plan helps you chart the course.

Investor confidence

If you find yourself in a place to seek external funding, whether from investors or lenders, a comprehensive business plan is a must. It demonstrates that you've thought through your business strategy, increasing your chances of securing financial support.

Adaptability

The insurance industry is never stagnant, and as such adaptability is key. A business plan isn't set in stone; it's a living document that can be adjusted as circumstances change. If done correctly, it allows you to stay flexible and make informed decisions as market trends shift.

Key components of an insurance agency business plan

Your business plan is the document that transforms your vision into a tangible reality, ensuring your journey as an independent insurance agent is not only successful but prosperous too. 

Let’s explore the key components of an effective business plan, including the executive summary, company overview and more. 

Executive summary

The executive summary serves as the elevator pitch for your entire business plan. It's designed to capture the reader's attention and give them a quick, compelling overview of your insurance agency. You'll want to concisely highlight your agency's mission, vision, and goals. Think of it as distilling your agency's essence into a few powerful sentences. It's an invitation for the reader to learn more about your agency's journey.

Company overview

The company overview is your opportunity to introduce your insurance agency in detail. It's where you set the stage for the rest of your business plan. In this section, you’ll want to dive into the history of your agency, including its founding story, location(s), and size. You should also describe every type of insurance product you offer and provide a snapshot of what makes your agency unique.

Industry analysis

The industry analysis puts your industry knowledge to good use. It's all about understanding the broader insurance market, including its trends, challenges, and opportunities. In this section, you'll research and present data and insights into the insurance industry. Discuss market trends, regulatory changes, and any challenges that could impact your independent agency. Identifying opportunities within the industry allows you to position your agency effectively to take advantage of them.

Customer analysis

Understanding your target market is essential for tailoring your services and marketing efforts effectively. Create detailed buyer personas that encompass their needs, preferences, and pain points. This information is the foundation for developing products and services that resonate with your audience.

Competitive analysis

Knowing your competition is about gaining insights into their strengths and weaknesses. When performing your market analysis, or market research, be sure to look at factors like their market share, marketing strategy, pricing models, and customer service practices. Understanding how you stack up against the competition will help you develop a winning strategy that sets your agency apart.

Marketing plan

Your marketing plan is the strategic playbook for how you'll attract and retain clients. Specify your marketing channels, both online and offline; outline your budget and set measurable goals. Whether it's through digital advertising, content marketing, or print advertising, your marketing plan should maximize your independent insurance agency's reach and impact.

Operations plan

The operations plan is the behind-the-scenes blueprint for how your independent agency runs day-to-day. Detail your team structure, office setup, and technology requirements. It's about ensuring smooth workflow and efficient service delivery. This section gives a clear picture of how your agency operates on a daily basis.

Management team

Your management team is the engine that drives your agency. Introduce the key members of your management team and highlight their expertise. Explain how their skills and experiences contribute to the agency's success. 

Financial plan

The financial plan is the heart of your business plan. It's where you demonstrate that your agency is not just a vision but a financially viable venture. For any enterprise, including insurance agencies, it’s important to provide detailed financial projections in your business plan, including income statements, balance sheets, and cash flow statements. Set clear financial goals and explain how you intend to achieve them.

Tips for creating an effective insurance agency business plan

Creating an insurance agency business plan is akin to crafting that roadmap we talked about earlier. But here's the twist—this isn't just any road; it's twisting and on an ever-changing landscape. To navigate it successfully, you need more than just directions; you need insider tips and tricks.

Define your brand

Your brand is more than just a logo; it's who you are. Define your brand identity, including your mission statement, core values, and unique selling proposition. A strong brand will set you apart in a crowded market.

Research funding options

If you need capital to start or expand your agency, explore different funding options, which could include personal savings, loans, or investors. Your business plan should outline your funding needs and how you intend to secure the necessary capital.

Apply for licenses

Ensure that you comply with all regulatory requirements in your area. This includes obtaining the necessary licenses and insurance policies to operate legally. Failing to do so could jeopardize your agency's success.

Set goals and establish metrics

Your business plan should include specific, measurable, and time-bound goals. Track key performance indicators to measure your progress and adjust your strategy accordingly. Regularly reviewing and updating your plan keeps you on the path to success.

A strategic roadmap for success

For an independent insurance agency, a well-crafted business plan is not simply a document; it's a dynamic tool that provides strategic direction, fosters adaptability, and instills investor confidence. By defining your brand, understanding your market, and detailing your operational and financial strategies, your insurance agency business plan becomes the compass guiding you through the complexities of the industry. 

With clear goals, a solid management team, and a proactive approach to change, your agency can navigate the insurance industry effectively, ensuring not only agency survival but also sustainable growth

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Alyssa Little | Senior Content Strategist

Alyssa is the Senior Content Strategist at Openly, collaborating with industry thought leaders to provide insightful and informative content in the home insurance space. With over 15 years experience in content marketing strategy, copywriting, and editing, Alyssa has refined her expertise through her work at such companies as Gartner, Nike, and Trupanion. Alyssa holds a BA in History from the University of Puget Sound and an MA in Museum Studies from Newcastle University.

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Insurance Agency Business Plan

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Quaestor Services

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Quaestor Services is in the process of being formed as a sole proprietorship owned and operated by Sheila Claflin. This plan is written as a guide for financing, start-up and management of this new business and will also serve as the basis for measurement. The following is a summary of the main points of this plan.

• The objectives of Quaestor are to generate a profit, grow at a challenging and manageable rate, and to be a good citizen in the community.
• The mission of Quaestor is to provide products and services with high quality, protection and value pricing.
• The keys to success for Quaestor are variety of business services and products, personal contact, timely and accurate service, development of one-to-one relationships, and a reputation of honesty and integrity. 
• The primary products offered will be from Whelnoan Insurance Company, and the added value to small businesses will be the accounting and financial services offered.
• The local market for this business is wide open. Whelnoan Insurance Company has captured 23% of the market share and is considered the second largest insurance company in Plainstate. 
• In the first year of operation, a customer base is being established. Over 85% of the new and established insurance business will renew each year creating compounding growth in sales of over 200% with limited increase in operational expense.

In conclusion, as shown in the highlights chart below, this plan projects rapid growth over the next three years with a profit forecasted in the second year of operation and continuing into future years of operation. Implementing this plan, will ensure that Quaestor Services becomes a profitable venture.

1.1 Objectives

The main objectives of Quaestor Services are:

• Profit – to create enough prosperity for the owner and employees to have a secure and comfortable lifestyle.
• Growth – to grow the business at a rate that is both challenging and manageable.
• Citizenship – to be a social asset to the community and contribute to others who are less fortunate.

1.2 Mission

Quaestor Services is dedicated to providing insurance products and business services that provide high quality, protection, and value pricing. We wish to establish a successful partnership with our clients that respects their interests and goals.

Success will be measured by our clients choosing us because of their belief in our ability to meet or exceed their expectations of price, service, and expertise.  

1.3 Keys to Success

The keys to the success for Quaestor Services are:

• A wide variety of business services and insurance products that are affordable, available and understandable.
• Personal contact and service that meets or exceeds the expectations of our clients.
• Services and products that are delivered with accuracy and timeliness.
• Relationships with our clients that fosters renewal business.
• A reputation in the community for it’s honesty and integrity.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Quaestor Services is a start-up company located in Smileyville, Plainstate, a suburb of Niceburg, providing both accounting and full-charge bookkeeping services and insurance and retirement products to individuals, families, and small businesses.

2.1 Company Ownership

Quaestor Services  is a sole proprietorship, owned by Sheila Claflin. Born and raised in the Pacific Northwest with Native American Indian heritage, Sheila was relocated to Plainstate in 1994 by her employer. 

She has over 30 years of experience in Finance, Accounting, Management, and Consulting and recently received her Plainstate insurance agent license for Life, Health, Property and Casualty insurance.

In the near future she intends to receive her Series 6 Securities license and take H & R Block Income Tax Course.

2.2 Start-up Summary

Quaestor Services start-up costs include:

• Marketing/Lead Services: marketing and lead generation services to establish client base
• Website Development: professionally developed business website on the Internet
• Logo: professionally developed business logo for business recognition in the market place
• Stationary: the printing of letterhead and envelopes with the company logo
• Business Cards: the printing of business cards with company logo
• Brochures: development and printing of brochures for marketing the business
• Cell Phone and Pager: business cell phone and pager for communication with the clients at all times
• Office Supplies: supplies necessary to set up an office
• Training/Licensing: costs associated with the three state licenses required for insurance business
• Business Associations: membership into several business associations such as Chamber of Commerce

Quaestor Services long-term assets include:

• Laptop Computer: used in meetings with clients for printing insurance quotes and on-line applications
• PC Computer/Monitor: used in office for accounting services and record of business transactions
• Printer/Copier/Scanner: used in office for business transactions       

Start-up costs come to $30,000 of which $15,000 is being financed by a direct owner investment. In the first six months of operation $15,000 financing is being sought after for the start-up costs. In mid-Year 1 an additional $10,000 in financing will be required to ensure business operations, marketing and stability during the first year of operation.

Quaestor Services provides accounting and full-charge bookkeeping services, insurance and retirement products to individuals, families, and small businesses.

As a representative of Whelnoan Insurance Company the following product and services are offered:

• Personal Lines – auto, renters, home, motorcycle, boat/yacht, snowmobile, jet ski
• Commercial Lines – businesses, workers compensation, surety bonds
• Life & Disability Products – term, whole, universal and variable life, long-term care, disability
• Retirement Products – fixed, equity indexed, and variable annuities, mutual funds
• Retirement Plans – IRA, Roth IRA, pension plans, SEP plans, SIMPLE plans
• Life Planning Concepts – mortgage protector, business continuation, buy/sell agreements
• Value Added Products

In the future we intend to offer the following independent products and services:

• Health Insurance
• Pet Care Insurance

Accounting and Full-Charge Bookkeeping Services are available at either the client’s location or in our offices on a regular, permanent basis with a schedule that accommodates the client’s needs. Rates are based on the needs of the business. These services include:

• Accounts Payable
• Accounts Receivable
• Credit/Collection
• Reconciliations
• General Ledger Maintenance
• Financial Statements

In the future we intend to offer the following accounting service:

• Income Tax Preparation

Market Analysis Summary how to do a market analysis for your business plan.">

The market area for Quaestor Services will be focused on three counties, Pleasant, Niceburg and Contented, in Plainstate. These counties are experiencing a combined average growth in population over the 2000 census of 6.45%.

As of 2004, the Whelnoan Insurance Company is the second largest insurance company in Plainstate with 23% of the market share. The overall market for Quaestor is wide open. This business plan has identified over 1.3 million  individuals and business as potential clients in the market area.

4.1 Market Segmentation

Quaestor Services has targeted the following market segments:

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The available market share of 77% represents the market that Whelnoan Insurance has not captured at this time. Although,the entire state is an available marketing area, the tri-county area will be the focus marketing area at this time. The total population of the tri-county area available for marketing is 29% of the total available population in Plainstate. 

The first and most important market segment is population broken down by age groups. This can be used for determining the market for personal lines of insurance such as auto and various recreational vehicles, life and life planning products.

Note that the population of 15 to 24 year olds has been separated from the available population as a market segment in itself for determining the possibility of high risk auto insurance policies.

The second market segment is housing units broken down by owner occupied and renters. This can be used for determining the market for personal lines of insurance such as home, townhouses, condominium, renters and mortgage protection.

The third market segment is small businesses with less than 20 employees. This can be used for determining the market for accounting and bookkeeping services and commercial lines of insurance including property and casualty, retirement and workers compensation.

Strategy and Implementation Summary

• Emphasize value instead of price . Quaestor is dedicated to working closely with each client and educating them on the importance of value over price.
• Build long term relationships . Quaestor is dedicated to establishing a successful partnership with each client, respecting their interests and goals by cultivating a long term relationship to enhance client retention.
• Focus on increasing market share . Quaestor will focus on personal and business clients that have been identified in the targeted markets.

5.1 Competitive Edge

Quaestor’s competitive edge is our positioning as strategic ally with our clients, who are clients more than customers. By building a business based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they need it.

5.2 Marketing Strategy

The marketing strategy is the core of Quaestor’s main strategy:

• Develop specific programs for each target market segment

5.3 Sales Strategy

Quaestor’s sales strategy will be based on systematic person-to-person contacts through referrals, direct mail, telemarketing and the Internet. A list of potential prospects has already been compiled and will serve as a launching pad for marketing the products and services.

5.3.1 Sales Forecast

The important elements of the sales forecasts are summarized on three line items, Accounting Services, Insurance Sales, and Miscellaneous Revenue. The summary of the initial sales forecast indicates a first year revenue of $39,500 increasing to over $108,310 by the end of the second year, then $122,110 by the end of the third year. It should be noted that although sales triple in the second year, all revenue has been forecasted very conservatively for the three year forecast. Forecasted sales increases are overstated by the Whelnoan Insurance subsidies or Miscellaneous sales. Actual sales growth for the second year is 160% due to adding a producer for continued sales growth and exponential growth of insurance renewals. The third year of sales reflects an actual growth of 76% due mostly to the increase in insurance renewals. Each element will be discussed separately and in its entirety below: 

Accounting Services – it has been determined in order to be conservative for this forecast, that the average accounting client requires services at approximately $500 a month, or 25 hours (x) $20 hour. Obviously this can vary depending on the needs of the client, but for forecasting purposes this is the standard used in determining the monthly revenue. In addition, it is assumed that once our services are sold to the accounting client, they will continue to generate a monthly revenue until replaced. Income tax preparation which will yield a substantial increase in revenue as a future service, but is not considered in this forecast. The illustration below, shows two clients are forecasted for the second year and three clients are forecasted for the third year. Accounting clients can sometimes require substantial time at first, until the clients’ needs are defined and set up. Limited clients are being forecasted due to the time required growing the client base for insurance.

Insurance Sales – are comprised of two categories, 1) insurance-new sales and 2) insurance-renewals. The insurance products used to forecast new sales are, auto and high risk auto (renews every six months), property structures such as homes, townhouses, condominiums, renters and landlord insurance, commercial, life and all other types of recreation vehicle insurance, (renews annually).  It should be noted that in order to be conservative, not all insurance products that are offered were forecast, such as health, retirement products and plans. Whelnoan Insurance Company District Office supplied the necessary documentation needed for the formulation of the insurance sales and renewals. Sales are based on actual results (averaged) created for the first three years of a new Whelnoan Insurance agency. All numbers have been reviewed and approved by them before the forecast was entered into this business plan.  

What makes insurance sales different from other sales are the renewals. In most cases, without an increase in monthly production, the monthly income will almost double due to renewals. It has been determined by Whelnoan Insurance that customer loyalty in the first year is 87%, second year is 85% and third year is 89%. Other than auto, which renews every six months, all other insurance products renew on an annual basis. Because of renewals, it is possible to double sales revenue without increasing production costs. The following is the monthly forecast:

Miscellaneous – the amounts forecasted in Miscellaneous are Whelnoan Insurance subsidies offered at pivotal times throughout the first two years to financially support the insurance agency during the development stage. The subsidies are broken down into four categories, and require that milestone production levels be achieved before the subsidy is made available, 1) commissions on new sales 2) marketing leads, 3) office space, and 4) staff. At the end of two full years of operations as a career agent, subsidies are no longer available. The total subsidies forecasted in the first year is $13,875, in the second year $41,700, and $4,800 in third year, for a total of $60,375. 

5.4 Milestones

The table below lists important program milestones, with dates and managers in charge. The milestone schedule indicates Quaestor’s emphasis on planning for implementation and the measurement of these activities. In addition, each milestone is important to achieving the financial forecast used in this business plan. The following is a brief description of each milestone:

• 12/01/04-01/31/05-Business Financing – obtain the very important start-up financing necessary for the first year of operation.
• 01/01/05-03/31/05-Career Agent – the Whelnoan Career Agent Program starts when a new agent has completed their training, received the required insurance licenses and in the last 90 days sold 30 policies including three life insurance policies. 
• 01/01/05-02/28/05-Accounting Services (1st Client) – obtain the first monthly client for accounting services.
• 03/01/05-06/30/05-Accounting Services (2nd Client) – obtain the second monthly client for accounting services.
• 04/01/05-09/30/05 -Career Agent (6 months)  – the first milestone in the Whelnoan Career Agent Program. A Career Agent receives $1,500/monthly for the first six months. At the end of six months, a Career Agent’s production is checked for the number of policies issued-and-paid to determine subsidy level. Required level per financial forecast is 80 property and casualty policies and eight life policies which allows a subsidy match of commission dollar for dollar on new business commissions up to $2,000/month and a lead subsidy of $100/month.
• 05/01/05-06/30/05-Business Financing – obtain additional financing to ensure business operations, marketing and stability during the first year of operation.
• 11/01/05-12/31/05-Hire Agent – hire and train new agent for a start date of 1/01/06.
• 04/01/05-03/31/06 -Career Agent (12 months) – the second milestone in the Whelnoan Career Agent Program. At the end of twelve months, a Career Agent’s production is checked for the number of policies issued-and-paid to determine a new subsidy level. Required level per financial forecast is 180 property and casualty policies and 18 life policies which allows an additional subsidy for staff at $1,500/month and office space of $750/month.

Whelnoan Insurance Subsidies are available for 24 months only or 4/1/05-03/31/07

• 04/01/05-03/31/07 -Run to Daylight (24 months) – the third milestone in the Whelnoan Career Agent Program. At the end of twenty-four months, a Career Agent’s production is checked for the number of policies in force to determine waiver of one third of the subsidies paid to the agent. In order to be eligible, an agent must have 400 property and casualty policies and 40 life policies in force.
• 04/01/05-03/31/08 -Run to Daylight (36 months) – the fourth milestone in the Whelnoan Career Agent Program. At the end of thirty-six months, a Career Agent’s production is checked for the number of policies in force to determine waiver of second third of the subsidies paid to the agent. In order to be eligible, an agent must have 540 property and casualty policies and 54 life policies in force.
• 04/01/05-03/31/09 -Run to Daylight (48 months) – the fifth milestone in the Whelnoan Career Agent Program. At the end of forty-eight months, a Career Agent’s production is checked for the number of policies in force to determine waiver of last third of the subsidies paid to the agent. In order to be eligible, an agent must have 660 property and casualty policies and 66 life policies in force.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The management philosophy of Quaestor Services is based on respect for every client, and individual responsibility. For the first year the only employee will be the owner, Sheila Claflin. In January of 2006 the financial forecast supports the hiring of an insurance agent to help increase the growth of the business. 

Quaestor’s intention is to hire only those who demonstrate the qualities necessary for working in a professional environment, and the willingness to move forward in continuing education. We will be hiring the ultimate “people persons” to provide world class service.

6.1 Personnel Plan

The Personnel Plan reflects the staffing levels required to create, and establish the customer base needed to achieve the revenues projected and reach profitability.

All insurance sales and business service personnel salaries are considered a direct cost of sales, and are listed as such in the financials .

Financial Plan investor-ready personnel plan .">

Quaestor Services’ financial plan is based on obtaining a loan by January of 2005 of $15,000 to cover the start-up expenses. In July of 2005 an additional $10,000 in financing will be required to ensure business operations, marketing and stability during the first year of operation. For financial forecasting the loan is a seven year loan at an interest rate of 9.09%. Quaestor will achieve profitability in the second year.

The fiscal year is a calendar year, January through December.

7.1 Start-up Funding

Start-up costs come to $30,000 of which $15,000 is being financed by a direct owner investment. Before the first six months of operation, $15,000 financing is being sought for the start-up costs. In July of 2005 an additional $10,000 in financing will be required to ensure business operations, marketing and stability during the first year of operation.

7.2 Important Assumptions

The key underlying assumptions of Quaestor financial plan shown in the following general assumption table are:

• We assume access to financing of $30,000 to support our financial plan.
• We assume our financial progress is based on a very conservative sales forecast supported by data received and reviewed by Whelnoan Insurance.
• We assume that all sales milestones have been achieved.

7.3 Break-even Analysis

The following table and chart show our Break-even Analysis. The first year due to start-up costs and expenses will not be included in the break-even analysis.

7.4 Projected Profit and Loss

Based on the realistic sales projections and efficient cost control measures in place, Quaestor will achieve profitability in the second year of operation. Monthly profitability is first achieved in November 2005, but due to developing a customer base, the first months of operations reflect a loss.

In the second year of operation, sales increased $68,810 or 174%, resulting in a net profit. Significant changes in the second year are the hiring of an agent in January 2006, resulting in additional costs to the direct cost of sales of $34,500 and the set-up of an office outside of the owner’s home and Whelnoan Insurance District 15 office, resulting in additional operating costs of $7,120.

7.5 Projected Cash Flow

Due the fact that Quaestor is a new start-up company, the cash flow for FY2005 is somewhat exaggerated by the instant influx of new capital. Subsequent years however show a healthy growth in cash flow, mainly due to the 84-month repayment of the start-up loan and increased sales.

7.6 Projected Balance Sheet

The table below presents the balance sheet for Quaestor Services. This table reflects a positive cash position throughout the period of this financial plan. The negative net worth is created in the first year due to the start-up costs showing as a negative retained earnings. As the balance sheet shows, Quaestor will not have any difficulty meeting their debt obligations as long as the conservative revenue projections are met.

7.7 Business Ratios

The table below presents common business ratios as a reference. Industry Profile comparisons are for Standard Industrial Classification code 6411.0000, Insurance Agents, Brokers and Service as the majority of our revenue comes from insurance sales. However, since the combined business of accounting/bookkeeping services and insurance sales does not fall underneath any predefined Industry dataset, the Industry ratios are not wholly accurate nor representative for Quaestor Services.

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Insurance Agent Business Plan

If you have an aptitude for convincing people and can identify what insurance works for different customers, then an insurance agency business might work for you.

An insurance agency is not only profitable, but also requires lesser skills to get started. But at the same time, it attracts a lot of competition. Moreover, it is also a work that involves a lot of responsibility for managing insurance portfolios properly.

You can do all of the above and more smoothly, with the help of an insurance agent business plan .

If you are planning to be an insurance agent, the first thing you will need is a business plan. Use our sample insurance agent business plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan , spend as much time as you can reading through some samples of insurance & finance-related business .

Industry Overview

The insurance industry stood at a massive value of 1.28 trillion dollars in 2020 and isn’t about to slow down any time soon.

Life and home insurance make up the majority of the market share. The growth of the industry can be attributed to the increase in buying houses and getting the same insured.

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Things to Consider Before Writing an Insurance Agent business plan

Choose your legal structure.

Different legal structures come with different pros and cons. Also, each legal structure solves different purposes for a business. From the taxes, you’ll pay to the liability on your assets, the legal structure of your business decides everything.

Hence, you should go through all of your options and pick the one that fits your business needs the best.

Build brand identity and image

Having a brand identity that makes you memorable to your customers is important. Constant marketing and branding efforts can help you achieve that.

Moreover, your brand image should give your customers a sense of reliability. It is of utmost importance to your business.

Get your licenses and permits

Figuring out what licenses and permits you need as per the laws of your country and state is very important before getting started in the insurance industry.

But at the same time, keeping track of all the legal requirements can be difficult. Hence, it is a good practice to have a checklist at hand before you get started.

Look into your funding requirements

The cost of setting up an insurance company depends upon the location and size of your business. Hence, look into what would be your financial requirements to set up your firm and if you’ll need any funds or not.

There are several funding options like angel investors, bank loans, etc. You can pick the option that works best for you.

Chalking out Your Business Plan

Reading sample business plans will give you a good idea of your aim. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample insurance agent business plan for you to get a good idea about how a perfect insurance agent business plan should look like and what details you will need to include in your stunning business plan.

Insurance Agent Business Plan Outline

This is the standard insurance agent business plan outline which will cover all important sections that you should include in your business plan.

• Keys to Success
• 3 Year profit forecast
• Startup Cost
• Funding Required
• Company Ownership
• Competition and Buying Patterns
• Market Analysis
• Target Market Segment Strategy
• Competitive Edge
• Marketing Strategy
• Sales Forecast
• Sales Yearly
• Personnel Plan
• Startup Funding
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample insurance agent business plan into your business plan and modify the required information and download your insurance agent business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

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Download a sample insurance agent business plan

Need help writing your business plan from scratch? Here you go;  download our free insurance agent business plan pdf  to start.

It’s a modern business plan template specifically designed for your insurance agent business. Use the example business plan as a guide for writing your own.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to write a business plan for an insurance broker?

Creating a business plan for an insurance broker is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating an insurance broker business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for an insurance broker?

• What information is needed to create a business plan for an insurance broker?
• What goes in the financial forecast for an insurance broker?
• What goes in the written part of an insurance broker business plan?
• What tool can I use to write my insurance broker business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write an insurance broker business plan in the first place.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your insurance broker is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your insurance broker, you'll have to:

• Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
• Determine the pace at which the business needs to progress to meet its objectives as scheduled,
• Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small insurance broker runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your insurance broker's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your insurance broker business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your insurance broker's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed insurance broker business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your insurance broker has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for an insurance broker, let's take a look at what information is needed to create one.

Information needed to create a business plan for an insurance broker

Drafting an insurance broker business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for an insurance broker

Before you begin writing your business plan for an insurance broker, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your insurance broker.

Your market research might reveal that customers may be more likely to select insurance plans with additional coverage options, such as pet insurance or identity theft coverage. It could also indicate that there may be a growing demand for digital insurance services, like online payment systems or automated customer support.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your insurance broker.

Developing the sales and marketing plan for an insurance broker

As you embark on creating your insurance broker business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of an insurance broker

As you embark on starting or expanding your insurance broker, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

The staffing costs for an insurance broker might include salaries for a team of insurance agents, administrative staff, and customer service personnel.

Additionally, your insurance broker might also need to pay for additional staffing costs such as training, benefits, and payroll taxes. The equipment costs for an insurance broker might include computers, software, printers, scanners, and other office supplies.

Your broker may also need to purchase specialized equipment such as laptops, tablets, and mobile phones in order to provide the best customer service. Finally, your broker may need to pay for additional costs such as internet access, phone lines, and other office expenses.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your insurance broker's financial forecast?

The financial forecast of your insurance broker will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a insurance broker are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

Your insurance broker forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established insurance broker will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your insurance broker

The projected balance sheet of your insurance broker will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your insurance broker projected balance sheet provides an understanding of your insurance broker's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your insurance broker's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your insurance broker has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your insurance broker business plan.

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

• Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
• Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
• Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your insurance broker business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting an insurance broker.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

Having this table helps understand what costs are involved in setting up the insurance broker, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of an insurance broker business plan is understood, let's focus on what goes into the written part of the plan.

The written part of an insurance broker business plan

The written part of an insurance broker business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of an insurance broker business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your insurance broker's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your insurance broker's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

In your insurance broker business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your insurance broker, you could emphasize the potential for growth in the area. You may discuss the fact that there are plenty of resources and opportunities in the surrounding area that could help to increase the profitability of the business. Additionally, you could point out that the area could potentially provide access to a wider customer base, allowing for greater success in the future.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your insurance broker might offer auto insurance for customers needing coverage for personal vehicles, home insurance for customers needing coverage for their homes, and business insurance for customers needing coverage for their businesses.

These products and services can provide customers with financial protection against unexpected events such as theft, property damage, and liability claims.

4. The market analysis

When outlining your market analysis in the insurance broker business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your insurance broker, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your insurance broker targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include young married couples. This segment is likely to be looking for a comprehensive insurance plan that offers good value for money. They are likely to be tech savvy and looking to do research online and compare prices.

In the competition subsection, introduce your main competitors and explain what sets your insurance broker apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your insurance broker.

5. The strategy section

When crafting the strategy section of your business plan for your insurance broker, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your insurance broker may face the risk of a client making a fraudulent claim. This could lead to a costly investigation and the broker may face legal and financial repercussions.

Additionally, the broker may face the risk of a cyber attack that could lead to the exposure of sensitive information. This could result in a loss of trust from customers and a damaged reputation.

6. The operations section

The operations of your insurance broker must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your insurance broker - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as customer databases and client records that could contain sensitive information. Additionally, your insurance broker might have intellectual property such as proprietary knowledge or business processes that could be valuable to the company.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your insurance broker business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my insurance broker's business plan?

In this section, we will be reviewing the two main solutions for creating an insurance broker business plan:

• Using specialized online business plan software,
• Outsourcing the plan to the business plan writer.

Using an online business plan software for your insurance broker's business plan

The modern and most efficient way to write an insurance broker business plan is to use business plan software .

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your insurance broker's business plan

Outsourcing your insurance broker business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your insurance broker business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your insurance broker's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your insurance broker business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your insurance broker business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
• Having an up-to-date business plan is the only way to keep visibility on your insurance broker's future cash flows.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your insurance broker. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

• In-depth business plan structure
• Key steps to write a business plan?
• Free business plan template

Know someone who owns or wants to start an insurance broker? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Insurance Broker Business Plan Template & Guidebook

Starting an insurance broker business doesn’t have to be a daunting task. By leveraging the #1 Insurance Broker Business Plan Template & Guidebook, you can get your new business off the ground quickly and easily. This comprehensive resource provides step-by-step guidance for developing a comprehensive business plan that will ensure success for your new venture. Read on to learn more about how to craft a winning business plan that will help you take your insurance broker business from concept to reality.

Get worry-free services and support to launch your business starting at $0 plus state fees.

How to Write a Insurance Broker Business Plan in 7 Steps:

1. describe the purpose of your insurance broker business..

The first step to writing your business plan is to describe the purpose of your insurance broker business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a insurance broker business:

Our mission is to provide our clients with personalized insurance solutions that meet their individual needs in a knowledgeable, reliable, and friendly manner. We strive to be a trusted partner, delivering the best customer experience each and every time. We are committed to building strong relationships with our customers while helping them protect their assets, families, and future.

2. Products & Services Offered by Your Insurance Broker Business.

The next step is to outline your products and services for your insurance broker business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your insurance broker business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your insurance broker business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your insurance broker business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a insurance broker business?

• Business license
• General liability insurance
• Insurance broker license
• Computer with internet access
• Phone and fax machine
• Prepaid legal plan subscription
• Marketing materials (brochures, business cards, etc.)
• Accounting software for tracking client information and bookkeeping

5. Management & Organization of Your Insurance Broker Business.

The second part of your insurance broker business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your insurance broker business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Insurance Broker Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a insurance broker business varies based on many different variables, but below are a few different types of startup costs for a insurance broker business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your insurance broker business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your insurance broker business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your insurance broker business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Insurance Broker Business Plans:

Why do you need a business plan for a insurance broker business.

A business plan for an insurance broker business is essential because it offers guidance and serves as a road map for you to follow as you establish and grow your company. A well-constructed plan can provide key information such as the analysis of your target market, an overview of the services you offer, a comprehensive financial plan, a marketing and sales strategy, detailed operations plans, and an overall mission statement. This information will help you visualize your company's goals and objectives, develop strategies to reach those goals, and identify potential risks. Additionally, having a business plan will also be important if you are looking for investments from outside sources. Investors or lenders need to see that you have researched your industry thoroughly and have a viable long-term plan in place.

Who should you ask for help with your insurance broker business plan?

An insurance broker who specializes in business plan development and/or a professional business consultant can provide the most helpful advice when crafting your insurance broker business plan. Additionally, local small business support resources such as the Small Business Administration (SBA) as well as your local chamber of commerce may also be able to provide advice and support.

Can you write a insurance broker business plan yourself?

Writing a business plan can be a complex process, and it is highly recommended that you seek professional assistance when writing a business plan for your insurance broker business. A professional business plan consultant can help you create an effective plan to achieve your business goals and objectives. They can help you identify financial objectives, analyze market trends, assess competition, develop marketing strategies, and more. Additionally, depending on the complexity of your business model, a professional may be able to offer additional services or advice regarding the legal aspects of running an insurance brokerage business.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Insurance Agency Business Plan Sample

DEC.22, 2016

Insurance Agency business plan for starting your own business

If you worry about how to start Insurance services, you must create a detailed Insurance agent business plan. It will not only guide you in the initial phases of your startup but will also help you later. Business plans for Insurance Agency are good instruments to assess the success of the business and track its progress. Insurance agencies require financial expertise and a highly accurate finance business plan . 

Since the insurance industry is classified as a due diligence service, you may be confused about how to start independent Insurance Agency. You can refer to this template set out for a firm called Lifelong Insurance for detailed guidance.

Executive Summary

Lifelong Insurance will be located in Texas. The business will provide life, health, travel, and vehicle insurance to its customers.  If you want to start this business but are confused about where to start, this Insurance Agency business plan template can act as your reference point.

2.1 The Business

As per this Insurance Agency business plan sample, Lifelong Insurance will be the newest and brightest independent Insurance Agency in Texas. It will be owned by Goerge and Martha Bell. They both have experience serving in the sector for 15 years. Lifelong Insurance was established in line with the following business continuity plan .

2.2 Management of Insurance Agency

The owners, Goerge, and Martha Bell are both Certified Financial Planners. They will hire certified and experienced employees to run the business. It is because matters related to insurance are of huge legal and financial importance and a lack of experience and knowledge can incur huge costs. In this business plan for Insurance company, we will provide a list of employees who will be hired to manage the operations of the agency. 

2.3 Customers of Insurance Agency

Irrespective of whether you are following an Insurance Agency business plan or thinking of starting a credit repair business , you need to know who your target audience is. Lifelong Insurance has the following customer groups as its target market:

• Aspiring Young Families
• Young Adults
• Exurbanites
• Local Businesses

2.4 Business Target

As per this sample business plan for Insurance Agency, the business target for Lifelong Insurance is to raise the bar in the insurance industry by providing excellence and utilizing the highest principles and standards in every aspect of the business. Lifelong Insurance wants to empower its clients, employees, and community while employing these practices.  

You may download this Insurance Agency business plan sample pdf from our official website.

Company Summary

3.1 company owner.

George Bell and Martha Bell came up with this new insurance agent business plan after working on it for months. It was despite their combined 15 years of experience in the industry.

3.2 Why the Insurance Agency is being started

The Bells were always interested in the insurance niche. Their education and experience turned them into excellent financial analysts. They also acquired legal expertise over 15 years. Therefore, as soon as they could manage the resources, they decided to start their own business.

George and Martha deserve credit for coming up with a unique Insurance Agency business model that prioritizes convenience.

3.3 How the Insurance Agency will be started 

The insurance agency can be started by following these steps ..

Step1: Become a licensed insurance agent

You can get an insurance agent license in a matter of weeks or months, depending on the requirements in your state. Since George and Martha introduced this business plan of an insurance company after almost two decades of experience in this sector, they already had a license. 

Step2: Write your business plan

Your business plan outlines what you want your business to look like and how you plan to get there. The process of writing it should force you to answer complex questions, like what unique value you’ll offer your customers and how much money you’ll need to get started. You can get this Insurance Agency business plan template free download to get an overview of how to write a plan for your firm.

Step3: Choose a business structure

Your business structure determines how your business profits are taxed and how your personal and business assets are kept separate, among other things. There’s also an insurance-specific question you’ll need to explore and that relates to if you want your Insurance Agency to work with one specific insurer or with many different providers. 

Step4: Form relationships with insurance companies

If you’re an independent agent, you’ll need to apply to work with insurance companies who you would represent. In the later sections of this insurance company business plan pdf, we will explain how establishing long-term relations with insurance companies can help you get more sales.

Step5: Grow your client base

If you choose to start an independent agency, you may have to hustle for your first few clients. Start by attending networking events and advertising in your local market. 

Download this free insurance business plan template to help get a head start on writing a personalized business plan.

Services of Insurance Agency

Different insurance agents offer different types of insurance schemes. Insurance business proposal offered by Lifelong Insurance provides a wide range of services to cater to a wide range of clients. Some of those are mentioned below:

• Life Insurance

We will offer life insurance to our clients by which we will pay a death benefit to the beneficiaries after the insurer’s death. The paid amount will be derived from the regular, premium payments.

In the market segmentation section of this life insurance business plan, we will explain who is expected to avail of this of our services.

• Reinsurance 

We will offer reinsurance services whereby we will transfer portions of risk portfolios to other parties by some form of agreement. This will help in reducing the likelihood of paying a large obligation resulting from an insurance claim. Such transfers are a little risky to handle and require attention from the business plan insurance broker. 

• Travel Insurance

The business plan for Lifelong Insurance also provides the service of travel insurance to its customers. Our travel insurance plans will cover medical emergencies, trip cancellation, trip interruption, delays, medical evacuation, and lost, damaged, or stolen luggage.

• Vehicle Insurance

Additionally, this  Insurance Agency sample business plan also offers vehicle insurance for  cars ,  trucks ,  motorcycles , and other road vehicles. Its primary use will be to provide financial protection against physical damage or bodily injury resulting from  traffic collisions . 

It is recommended that you read multiple insurance business plan templates like these to decide what services you want to offer.

Marketing Analysis of Insurance Agency

Great work.

Had the pleasure of working with Alex on a business plan for a new venture. The end result looks very professional. His communication is always prompt and he was very patient with my detailed requests. I would definitely work with this company in the future.

You must understand the market thoroughly before you step into it. It will help you understand the level of competition, potential untapped markets, pricing trends, and changing consumer preferences. You may go over different Insurance Agency business plan examples to get an overview of the current market trends.

5.1 Market Trends

The market size of insurance brokers and agencies in the United States reached almost $182 billion in 2020 and was expected to further increase in 2021. Hence, this is the right time to work on your insurance company business model and introduce it in the market. You can reach out to a marketing plan Insurance Agency to help you understand the changing marketing trends.

5.2 Marketing Segmentation

Common characteristics of a market segment include interests, lifestyle, age, gender, etc. It is essential to identify them to determine your target market. Every <sample> sample business plan for insurance company identifies different customer groups. In this marketing plan for insurance company pdf, Lifelong Insurance Agency specifies the following as its potential customers:

5.2.1 Aspiring Young Families

Young families have varying insurance needs. They need to avail themselves of life insurance policies, health insurance, and auto insurance. We will serve them in all these aspects. They will sign up for vehicle insurance as per this insurance sales business plan.

5.2.2 Young Adults 

Lifelong Insurance will target this group with its competitive auto insurance rates and insurance of technology gadgets such as smartphones and computers.  

5.2.3 Exurbanites

This target market will need help with life insurance and long-term care. This group is also expected to get their vehicles insured by us.

5.2.4 Local Businesses

Small businesses have a myriad of insurance needs. At Lifelong Insurance, our representatives will meet each business owner and individually determine their insurance needs.

5.3 Business Target

• Capture 30% of the market share within 1.5 years of operations.
• Maintain a CSAT score of more than 96 throughout the operational years.
• Negotiate with local businesses to expand our client base.
• Increase returns on interest by 15%.

5.4 Product Pricing

As per this business plan insurance company, Lifelong Insurance will keep its prices a bit higher than its competitors. It is because we have hired the most expert and competent employees. Moreover, we are providing several benefits as compared to our competitors.

Marketing Strategy of Insurance Agency 

No matter how better you are performing as compared to your competitors, you cannot manage to get more sales unless you advertise with compelling arguments. In your business plan, you must define a sales strategy by which you intend to reach out to more and more customers.

To get ideas, you can read the business plans for insurance agencies that are available to you. You can go through similar business plans such as a bookkeeping business plan to understand how an influencing yet unobtrusive sales strategy is developed.

6.1 Competitive Analysis

• As per this business plan for an independent Insurance Agency , Lifelong Insurance will strive to be the best and quickest insurance services provider . 
• Lifelong Insurance will go through clients’ requirements thoroughly before developing a customized insurance package for them.
• As mentioned in this sample business plan for Insurance Agency, we will hire people who are the most qualified, expert, and experienced for the post.
• We will build long-lasting relationships with our clients through constant communication. 

6.2 Sales Strategy

This insurance agent marketing plan template includes the following sales strategies:

• Utilize social media platforms and online web presence.
• Utilize customer ranking websites such as yelp.com.
• Request referrals from satisfied customers.
• Collaborate with local safety institutes.
• Arrange seminars to spread awareness about insurance packages.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

All the costs associated with human resources are accounted for in this business plan for an insurance agent.

7.1 Company Staff

Under this Insurance Agency business proposal, these positions will be hired for:

• 5 Bookkeepers
• 2 CFP Agents
• 1 Admin Manager
• 1 Customer Care Executive

7.2 Average Salary of Employees

Financial plan of insurance agency .

As per this business plan for Insurance Agency template, Lifelong Insurance’s idea is to increase the premium charges on its different services over time to have greater profit margins. This business target stems from the fact that a skilled workforce and a sustainable business cannot be established without monetary resources.

As per this business plan Insurance Agency, the Bells will take several initiatives to boost their sales. If you are entering this venture you must analyze the financial feasibility of your startup by drafting the expected cash flow diagrams, and calculating gross margins.

To see what you must include in your financial plan, you can refer to the Insurance Agency business plan samples available on our website. Moreover, you can also take help from the financial plan documented below.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios, tips on how to establish a successful insurance agency.

If you are taking a gander to initiate an insurance agency, it is necessary to do an intensive background research to get a good understanding of the insurance sector before getting your feet wet. For instance, before you start offering a particular policy, it is exigent to get to the ground and identify the desideratum of the target customers. It is also a requirement to have a strong business plan that you can employ to run and make decisions in the insurance agency. Check out the samples of insurance agency business plans posted online to know how to design yours.

Having a professional business tactics template will save you on time that you would have spent creating your plan of activities from scratch. If you fancy a customized plan, consider seeking professional insurance agency business plan writing services . As mentioned earlier, one of the bankroll remonstrances of scribbling a contrivance is the amount of time and research that is required. Luckily, there are many professional insurance writers, who operate offline as well as online who can help you write insurance agency business plan samples . The charge for this service might be high, but it is better to spend money on a quality service than scribble a mediocre contrivance that will spell doom for your firm.

Results of a SWOT Analysis

Notictious Insurance Agency is focusing on the identification of the multifarious strengths and weaknesses that could promote the organization or lead to its downfall. As a result, we sort the ministrations of a crackerjack business-consulting organization that did a comprehensive SWOT assay. The results of this analysis will succor tract the concourse for success.

Our team was actively convoluted in the analysis and worked with the counsels to warrant that their recommendations were accurate and in line with the goals.

We take the results of the assay very seriously, and we are committed to making sure that we bring into playing the proposed organization recommendations to the letter.

For any business to succeed in the surpassingly vying and digitalized current business world, it needs to identify its core strengths. Business strength is something that sells to the target customers. Our insurance concourse’s core strength is its workforce, which is our insurance faction. Since our inception, we have engaged a team of experts who are committed and determined to warrant that customers get quality services. We have positioned our insurance organization to inveigle millions of prospects who need insurance agency business plans from the first-day operations. We have also invested in a modern application or software that allows us to streamline our insurance concourses and get in touch with our insurance prospects at any time of the day and without spending a fortune.

As a new insurance concourse in the nation, we will desideratum to generate an effective plan to penetrate the market and succeed in getting customers. We understand the insurance sector is very competitive, but we are sure that we have what it takes to tussle in the business with the other insurance concourses that offer similar policies that we plan to offer.

Opportunities

There are unlimited business scopes for our insurance concourse in the market today. We are prime to make sure that we take ascendancy of all business opportunities that come our way and this will greatly help to warrant that we start and uphold to conceive lucre for decades if not centuries.

A weak and unpredictable mercantile is one of the primary threats that could hogtie the surge of our insurance concourse and the insurance business at large. Every business faces its divvy of presage in spite of the verity that it might have a robust system of tackling the demurs. This is the main reason why institutions and the insurance concourses that we plan to rival in the market carries out risk assessment studies regularly to warrant that the concourse is conscious of the business changes in the market.

Another business fulmination that we are keen on responding to as we progress is the establishment of similar insurance agencies in New York. It is our hope that when that happens, we will have invested in business teams that will generate unique and unrivaled policies, which will keep customers streaming into the company.

Needless to say, the many realistic, implementable and winning business strategies that we have been capable to create and establish as credible ways of interacting with customers will surely give us a higher cutting-edge in the market. By providing quality insurance services to our chumps, we will be capable to expand and surge the business fast and warrant that it continues to reign supreme.

It is also importunate to point out that just like any other business or venture entity; the unstable financial markets are a significant threat. Similarly, economic changes and downturns, climate calamities, as well as government policies that do not favor the institutions are ostensible to affect our insurance provision services, but we are prime to handle them all and warrant that the concourse remains profitable.

Payment Options

By payment options, we are referring to the various channels that our customers will use to pay for premiums that they select. Notictious Insurance Agency takes pride in that we have a solid plan created by our finance department. This plan makes sure the prompt receipt of payments without compromising the safety of our clients.

Below are some of the deposit choices that our customers will have to apply to make payments to us on a monthly or yearly basis.

• Deposit by via bank transfer
• Deposit through online bank transfer
• Deposit through check
• Deposit through bank draft
• Deposit with cash
• Deposit through mobile cash platforms

Culmination of the settlement choices listed above will be through credible and reliable banking platforms as well as organization systems to eliminate any errors from occurring.

Advertising and Promotion Strategy

Although our insurance intermediary is different from the others on the earth, we do plan to make sure that we use media stations to advertise it. We are conscious of the fact that most people make a decision to apply the services of a particular insurance agency business plan given their referrals and reputation. Therefore, we will sweat on creating a good credibility and reputation score in the market to contend with the auxiliary insurance companies.

During the promotion of our insurance products, we intend to leverage in both computerized and print media. Our research has shown us that using this medium will save us hundreds of dollars that we can invest in other activities that will further promote the augmentation of the insurance institution.

Here is a list of the primary platforms that we are going to be using to create a brand acquaintanceship of our insurance company and promote the insurance products to our customers.

• We will advertise our organization through countrywide television stations, gazettes, magazines, and AM-FM stations
• We will have our organization TV program that will be discussing the policies that we provide
• We also going to be actively involved in community-based programs
• We will employ social media networks such as Twitter and Facebook to advertise our insurance products and organization
• We will invest in quality billboards that will be installed around the city and in auxiliary areas of the nation that we intend to open the organization offices
• We will consummate road shows from time to time to showcase our insurance policies to our customers
• We will disseminate dodgers and pamphlets to our customers on a monthly basis
• We will expedite rudimentary letters to Diaspora institutions, consulates, and conglomerates to warrant that they too are cognizant of our insurance policies and hopefully they will take up a few
• We will invest in branded vehicles and also brand the commercial buses
• We will encourage our loyal customers to market our products to their peers, friends, and colleagues by offering incentives such as discounts.
• What is the easiest way to complete my insurance business plan?

The easiest way to come up with a business plan is to take one step at a time. Start with developing an executive summary, get an idea of what your company looks like, and take down the ways you can execute your idea. You can hire professional services to get a business plan for a financial advisor . If you know the field, you may also write your business plan after going through a sample business plan template for an Insurance Agency.

• Where can i download an insurance business plan pdf?  

There are multiple websites where you can find free PDFs for business plans. Whether you are looking for a  holding company business plan or an Insurance Agency sample business plan, you can find the samples by doing a little resear

Download Insurance Agency Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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CIB Group - Little Silver NJ

Commercial Insurance Careers | Recruiters

90-Day Producer Plan

January 19, 2018 By The CIB Group

If you’re a commercial insurance broker (producer) struggling or dissatisfied with your prospect pipeline — or you manage someone in this situation — it’s a great time for a reboot. As in, let’s get going NOW in a better direction before 2018 gets away. For most producers, the prospecting well runs dry periodically. I’ve never heard a producer complain that they have too many great, qualified prospects. Struggling with a thin pipeline, producers tend to overwork unqualified prospects that won’t turn into clients. That wastes everybody’s time and effort and creates a doom loop of frustration and failure for the producer.

How can a producer with a thin pipeline kick-start their prospecting?

We recommend that a producer prepare a 90-day producer plan. Why 90 days? It’s a tight, manageable time frame. Not too short. Not too long. If you steer wrong or go off course, you fix it next quarter. It’s about 1% strategy and 99% tactical. Separate the strategy and the tactical. Spend one day (today would be a great day) to strategize. Then spend the next 89 days, doing what you planned. The format is not important. It’s your thought process. You need a straightforward game plan for how you will prospect to fill your pipeline with qualified prospects that ultimately can become clients (and grow your book of business and your agency/brokerage).

90-Day Producer Plan Breakdown

We recommend your 90-day producer plan contain 4 elements:

• Target Markets: Focus on 3 niche markets – What niches will you prospect? It’s easier to be successful when you focus on specific industries. Identify industries where you want to build a clientele and be known as a risk management and insurance expert. Find industries you like to work with, where you already know people, where your firm has proven success and that are widely available in your local market.
• Target Accounts: 26 Prospects – 13 weeks – you need to meet with 2+ prospective clients each week. Who are the target accounts that you will meet in the next 90 days? This is laser-focused and tactical — name the specific businesses you will meet with this quarter. If you can continuously set 2+ qualified new business appointments per week, you’re going to be well on your way to success as a producer.
• Centers of Influence: 13 people in your sphere of influence – explore one relationship each week. Who are the people that can give me leveraged referrals to prospects? List the names of people you’re going to contact. Think: accountants, lawyers, bankers, local networking group members, niche industry association group members, your LinkedIn connections. Talk to your COIs about mutual shared success.
• Prospecting Campaign: You have 90 days. What strategies are you going to use to open doors? Be a prospecting animal. No prospecting method works perfectly but everything works so don’t over-analyze. The phone is still the most ruthlessly efficient. Make warm calls if you can; make cold calls if you must. Face-to-face canvassing may work too for some types of business and it’s a nice change of pace from phone work. For sure, use LinkedIn, the social media power tool for business development. Harvest referrals from clients. Participate in or host local events or seminars. Be active in local business networking or niche industry association groups. Do direct mail or email campaigns.

A successful producer develops the discipline to continuously self-generates prospects and sets first appointments. That’s what the 90-day plan focuses you on doing. Work a 90-day plan and start the habit of building one every quarter. Don’t surrender on 2018 if you’re off to a slow start. Crank up the sales prospecting engine and fill your pipeline.

We are always looking for talented individuals

apply now to be considered for a commercial insurance career

(973) 271-4458 [email protected]

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Agency Performance Partners

Posted on November 7, 2022 by Kelly Donahue Piro

Setting insurance producer sales goals can be overwhelming. Many agencies aren’t sure where to start. You don’t want to set a low goal and be unprofitable or set a lower-than-ideal expectation for producers.

On the flip side, you don’t want to put the insurance producer sales goal too high and make it too hard to attain.

There’s also another consideration when setting sales goals. Producers will likely have different roles and responsibilities. Some may service and sell, some only sell, and some producers only target opportunities over a certain threshold.

In this blog, we want to review how every agency can set insurance producer sales goals by having a clear roadmap that works for you. 

Setting Insurance Producer Sales Goals

As you start your journey in setting goals, you want to have a few things ready for review. This checklist identifies several factors that will help you establish successful sales goals. We’ll also share our recommendations for personal lines vs. commercial lines sales goals.

What Percentage of Their Time Is Spent On Sales

Insurance producers may wear many hats in many agencies. Some of these items include:

• Servicing and selling
• Servicing their book
• Being a mentor to other agents
• Handling renewals
• Handling remarkets or reshops
• Other roles and responsibilities

Prospecting vs. Inbound Leads

There is a difference between agencies that provide leads and expected prospect agents. Generally, inbound opportunities tend to be smaller, and outbound tend to be fewer in quantity but more significant in premium. In many agencies, the expectation is a combination of both prospecting and inbound. 

Insurance Agent Experience

When you are a new producer, it can take some time to build your pipeline (but it can’t take too much time!) Insurance producer sales goals should be readjusted every year. Their sales goals should be adjusted as agents grow and build a pipeline and relationships. 

Profitability

Producers must pay for themselves! While this can take a bit of time (generally 3-4 years), you must ensure that the producer is on track for profitability each year. We do recommend that this is an open and transparent conversation. 

Alignment With Company Growth

Many agency owners miss the opportunity to tie producer goals directly into the agency growth goals. For example, if you wanted to grow your agency by 10%, you would need to identify the following:

• Retention Rate
• Estimated Premium Increases
• Your sales team needs goals that will fill the gap 

If these goals are too high, you may need to look at investing in another producer or spreading the sales between the service team (cross-selling) and producers focused on new business. 

Identifying A Target Client

Desperate sales agents bring in desperate clients. We do strongly recommend that agencies identify their target client. Some considerations include:

• Minimum Premium
• Minimum Coverage
• Policy Count 
• It’s ok to say no to customers who aren’t the best fit for your agency!

We want to encourage every agency to find sales goals that work for you! When you take off-the-shelf sales goals you may be missing the mark. 

“Setting goals is the first step in turning the invisible into the visible.” -Tony Robbins

How To Set Personal Lines Producer Sales Goals

When creating personal lines insurance producer goals, you want to consider the type of opportunities you are targeting. For many agencies they identify:

• Lender referrals
• Client referrals
• Any other lead sources you may work on

In reality, paid and lender leads can have very different closing ratios. We do strongly recommend that every agency engages in tracking their closing ratios. You want to ensure that your department always runs a substantial profit margin! 

Here is the reality, a producer that only focuses on new business (or mainly does!) should be hitting $45,000 in new premium sales every month. We, in fact, have many agencies hitting $60,000 or top months at $100,000 in new business premiums. We find many agencies can find these numbers shocking. However, these numbers are possible when you find the right person, process, and work to manage your time! These stats don’t happen by accident, but they do happen by intention. 

In order to get to these numbers you may need to help scale the department. You may have someone who is handling file prep, quoting, post-binding, etc. In addition, the agents hitting these numbers have all invested in a CRM tool that helps them track, manage and automate their sales. 

Setting Realistic Goals

When we work with agencies, we like to help them set realistic goals that they can work toward. Remember, there are a lot of factors we have listed on how to set goals. As part of our Agency Growth Program , we work with every agency to set realistic goals – with the idea that we will keep increasing the goals as the agency’s sales team strengthens. 

Here is how we start the process:

• Determine the average retention rate
• Select a standard rate increase (this is often an estimate)
• Do the math – find what you would need to sell to hit the annual growth target
• How much do you want to grow in each department 
• The service team should have a cross-selling goal or a “tee up” goal for sales
• Just a note, everyone can generate an opportunity and get it into the hands of a sales agent!
• Once you have your number you want to identify who your sales agents are. Remember each one may have different tenure or types of leads they are working on! You can set your goals based on what the sales agents did last year and be sure to increase that number. 

In personal lines, identify a few sales goals to focus on:

• The number of Quotes Per Month: personal lines start with opportunity. Personal insurance producers tend to be more inbound, but they should also be working on unsold quotes, lost customers, and referrals. Every personal sales agent should have control and the ability to add to their pipeline. 
• Closing Ratio Goal: In sales, there are only two challenges: closing ratio and enough leads. The sales agent can control the closing ratio! Sales agents can control their closing ratio when they have the right process. Success for personal lines tends to be in the follow-up and asking for the agency’s business process. The challenge we see is that far too many agencies have a quoting process but no sales process. Our Agency Growth Training helps to fix this. 
• New Business Sales Goal: I love setting revenue goals for all sales agents. However, if you are new to setting goals, revenue may be over complicated. In personal lines, commission rates can be all over the map. Premium is simple, but revenue is better! You want to set a monthly goal to hit for everyone . 

Examples of Personal Insurance Producer Sales Goals

We wanted to share with you a sample of a monthly personal lines producer goal:

• Monthly Premium Goal: $45,000
• Closing Ratio: 50%
• Quotes: 75 Policy Quotes (this is 3.75 policy quotes per day!)

How To Set Commercial Lines Producer Sales Goals

Commercial line sales really should be split between inbound (call-in business) and producer-generated. Many agencies have producers also take calls in business, but we find that producers tend to aggressively wait for the phone to ring. This means they stop prospecting and become dependent on calls in business which tends to be lower in premium. We always recommend that agencies define their producer roles and lead types. For call-in business, you can follow the above personal lines goal strategy. 

While many agencies struggle to find outbound commercial producers (they can tend to be as rare as unicorns), there are many great b2b sales professionals in many communities. You have to get creative, find them from other industries, and train them on insurance. The reality is you need someone who can generate opportunity – the agency can always help them with insurance. 

For commercial sales agents, you may often have to invest in a decent base salary to attract them to your agency. Your commercial producer team needs to contribute to your overall agency goals, but most importantly, they need to be on track to generate an ROI. Early on (6 months), we recommend heavily focusing on activity goals.

It will be fine if a sales agent can get appointments and expiration dates! If they get stuck behind the desk, it’s generally a sign that the leader needs to address the producer to get them in alignment with activity goals. 

“Motivation will almost always beat mere talent.” -Norman Ralph Augustine

For producers that are prospecting, we recommend that you set a premium or revenue minimum that they focus on. You do not want your producer farming business that you could quite possibly call in. Outbound producers need to be focused on generating opportunities from larger targets. For every region and agency, this target may be different. Agencies can generally start with $2500 in commission. 

For commercial producers to be valuable to agencies they need to have a monthly goal of $7200 in commission revenue per month. Many agents are targeting higher than that. Newer producers generally need to be worked up to this level as they grow and build their pipeline. 

In commercial lines, identify a few sales goals to focus on:

• Number of Appointments per Month: Commercial production is all about appointments. Commercial insurance producers need to generate activity. With appointments come expiration dates. Expiration dates fill the producer’s pipeline for the future. In most of the larger businesses, you need to work several weeks in advance. A ripe and rich pipeline is where every producer needs to focus. 
• Application Goals: Once you have the expiration date, you need to work on them to submit the application. If you can work towards a target goal of applications to submit every month, hitting your monthly sales goal should not be an issue! If your commercial producers need sales training take a look at the APP Commercial Sales Course . 
• New Business Sales Goal: Commercial sales agents should be targeting a revenue goal. The main reason is that states with Workers’ compensation policies those policies can be large but also have low commissions. You want your team looking to hit a dollar amount. In addition, commercial agents should really like money. Their commission is tied to revenue, not premium. Now, depending on the size of commercial agents you are targeting, you may want to lean on a quarterly goal. If they are whale hunting, they may not find a whale every month! 

How To Handle When Producers Are Not Hitting Their Sales Goals

We see many agencies that hold on to non-producing producers for too long. Agencies love having producers and often struggle with accountability. For many agencies, the non-producing producers have strong ties in the community, and there is a fear that letting them go will leave a negative mark on the agency.

The reality is that producers must produce. It’s a math equation. Where many agencies struggle is a lack of transparency in expectations and tracking. To ensure you have the right producer team, you need to set clear goals, and starting with this blog; you can do that!

But what do you do if you have the tracking and clear goals and it’s just not working? Don’t fear accountability. Remember, clarity is kind – do not sugarcoat the situation! We believe in a three-strike rule. Every goal missed is a strike at any point in time in a rolling 12 months.

There is a three-strike rule; after each strike, there is a written warning and action plan that the agency works on with the producer. The goal is to alert them they are off track and invest in them to bring them on track. After three strikes, they should be on a performance improvement plan that could lead to termination. 

While these discussions are challenging, they are critical. Producers who aren’t producing are taking up valuable agency resources, and agencies need to address this upfront and sooner than later. 

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How to Choose a Health Insurance Plan for Your Small Business

A s a small business owner, you're no doubt aware that it's important to not only attract solid talent, but do what you can to retain talented employees. And a good way to do that is to make sure you're offering a nice benefits package. That package might include a retirement savings plan you help contribute to, paid vacation time, and health insurance.

Now, you should know that if you run a business with fewer than 50 full-time employees, you're technically not required to provide health insurance. But that doesn't mean you shouldn't.

Healthcare can be an astronomical expense in the absence of insurance. And even if you're willing to raise salaries in lieu of providing insurance, you may find that prospective employees are turned off by the prospect of having to go out and purchase health coverage themselves.

Of course, choosing a health plan for your business isn't exactly an easy thing to do. Here are some tips for navigating the process.

1. Decide how much you're willing and able to spend

Within the realm of small business health insurance, there's a range of plans. As you might imagine, costlier plans tend to offer superior coverage, while those that are less expensive don't offer as much to participants.

It's important to be realistic about how much you can afford to spend on health insurance. As a smaller operation, you can't benefit from the bulk rates a company with 12,000 employees might snag. So you'll need to take a look at your banking records and see what's realistic, keeping in mind that you'll likely be picking up a large share of those premium costs.

2. Figure out if you want a high-deductible insurance plan

High-deductible health insurance plans can be burdensome for participants -- especially those with family members who tend to get sick often. But the costs for these plans can be more reasonable, as plans with higher deductibles tend to come with lower premiums. That's something to keep in mind if you'll be covering those premiums at 100%.

Also, if you offer a high-deductible plan, it may allow you to offer a health savings account in conjunction with that plan. That could make it easier for your employees to cover their medical costs while reaping tax savings.

3. Consider partnering up with an insurance broker

As a small business owner, you may not be all that well-versed on health insurance options. But it's the job of an insurance broker to walk you through your options and do research on your behalf, so you can focus on running your business. Not only might an insurance broker help you find the right plan, but they can generally help you get set up so you don't find yourself lost in a sea of paperwork.

Whether a health insurance plan is something you're looking to offer because it's a requirement or because it's a benefit you want to provide, it's important to find the best plan for your company. Take your time in making that decision so you and your employees wind up happy with it.

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Written by:

Laura D. Adams

Insurance & Finance Analyst

Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...

Reviewed by:

Daniel Walker

Licensed Insurance Agent

Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...

UPDATED: Nov 3, 2014

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Malakut Insurance Brokers LLC

Tel: +74959331373 FAX: +7 4959331370 Email: [email protected] Web: www.malakut.com

HQ Address: 12, Malaya Sukharevskaya Sq., Moscow, 127051, Russia

International Practice Group Address: 12, Malaya Sukharevskaya Sq., Moscow, 127051, Russia

Legal form ofthe company (plc etc. ): LLC

Registration number of the regulatory authority: 4004

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Corporate P&C

Personal lines and EB

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Marine and Energy

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Tatiana Razuvaeva

+7 495 933 1373 +7 916 473 7884 +7 495 933 13 70 [email protected]

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