Agency Appointment/ Agent Certification

[Trainee]

Here is the scenerio. A relative of mine has a sizable business dealing with a wide variety of residential housing/renting. I would like to be able to become an independent agent just to place this one account as a side business to my current job. Would it be possible to do this?

My main thoughts:
Could someone with one account obtain an agency appointment to place just one account?
For this type of risk would I even be placing the account with someone that I would need an appointment with?

Any advice would be appreciated. Thank you.

[themaplewoodgroup]

Call me if you like. We have helped a number of start up and captive agents develop their businesses through our markets and programs. Steve

[gforaker]

Probably much easier for you to get your agent's license and then negotiate with an agency with a contract with the placing company to pay you commission as a producer on the account. No need for handling your own taxes, E&O, Workers Comp.,etc. Make sure you negotiate ownership of the account.

[AgencyEquity]

Running an agency or being an agent is not a free ride, there is so much involved and so much of an investment, it's not for amatures. Unless the account is over 1m in annual premiums, you will lose on the deal. Even if it is over 1m in premiums, you will still have a huge uphill battle. Insurance Agencies are not for part-timers, their is way too much liability, also insurance carriers will not give you the light of day, it's a waste of their money to work with someone with one account, let alone 20 accounts (unless they are huge accounts). You will also need to purchase E&O insurance and do a number of others things. Also, who is going to do you certicates, etc etc? It’s not a business you can start with the click of light switch by any stretch. Don't waste you time looking at the commission you will make, you will drown before you even make it. I don't say this to get you upset, I say it because it is reality as well as to save you from all the headaches.

[Island Girl Agent]

Not sure about your state, but in my state, the insurance laws prohibit an agent from setting up shop merely to handle family business...better check your laws first, but also agree with the other posts about getting carrier appointments. They aren't handed out to just anyone, and some carriers flat out won't appoint small shops.