How to Start an Insurance Agency (Even From Home): Licences, Carriers, Costs and Getting Clients

To start an insurance agency: choose your lines (property & casualty, life & health, commercial) and model (independent, captive/franchise, or joining a network/aggregator for carrier access), obtain the required licences, form a business entity and agency licence, buy errors & omissions (E&O) insurance, secure carrier appointments, set up an agency management system, and launch a website and lead generation plan. Many agents start from home to keep costs low.

Step 1: Choose lines and model

(What an insurance marketing organisation (IMO) is: a wholesale distributor, common in life and annuities, that provides carrier contracts, training and support to agents.)

Step 2: Licensing

Pre-licensing education and exams for each line (e.g., P&C, life & health), agency/business entity licence where required, continuing education.

Step 3: Business setup

Entity, tax registration, bank account, E&O insurance, office or home office, compliance procedures and data security.

Step 4: Carrier appointments

Apply to carriers directly or through networks/aggregators; carriers often look for experience and production potential.

Step 5: Technology

Agency management system (AMS), comparative rating software, CRM, e-signature, quoting tools, phone system and automation for renewals and follow-ups (see How to use a CRM).

Startup costs

Licensing and exams, E&O insurance, entity and agency licensing fees, technology subscriptions, website and marketing, and working capital (commission income takes time to build).

Starting from home

Allowed in many places; check local zoning and licensing rules, and use virtual meeting tools and a professional mailing address if needed.

Step 6: Website and lead generation

Website with lines offered, quote request forms, reviews and local pages; Google Business Profile; referrals and partnerships (see How to get insurance leads).

Step 7: Grow

Retention, cross-selling and hiring producers (see How to grow an insurance agency).

Frequently asked questions

How do I start an insurance agency?

Choose lines and a model, get licensed, form an entity with an agency licence, buy E&O insurance, secure carrier appointments, set up an agency management system and market your agency.

Can I start an insurance agency from home?

Often yes, subject to local zoning and licensing rules.

How much does it cost to start an insurance agency?

Costs include licensing, E&O insurance, technology, marketing and working capital; home-based agencies can start relatively lean.

How do new agencies get carrier appointments?

Directly from carriers or through networks/aggregators that provide access in exchange for revenue sharing.

What is an insurance marketing organization (IMO)?

A distributor that contracts with carriers and provides agents with product access, training and support, especially in life and annuities.

How long does it take to start an insurance agency?

Typically a few months to complete licensing, setup and carrier appointments.