How to Become a Crop Insurance Agent

Becoming a crop insurance agent can lead you to a career that is both exciting and very lucrative. The process is similar to becoming any other type of insurance agent. Crop insurance agents are simply more focused and better trained to market and sell a specific type of insurance to farm owners that will help protect against destroyed or unsold crops. Crop insurance agents should familiarize themselves with the financial intricacies of a farmer’s life. According to the National Crop Insurance Services, “a thorough understanding of agricultural economics and the agrarian lifestyle is extremely beneficial.”

Things You'll Need

• Insurance producer's license
• Agent appointment paperwork

Instructions

1. Educate yourself about your community’s farming history, paying particular attention to any trends related to the success or failure of local farmers. Learn the basic fundamentals of how crops are grown, harvested, packaged, and sold. By understanding the challenges and financial risks faced by today’s farmer, you will be able to relate to prospective clients, and make more sound recommendations regarding relevant crop insurance policy options.

2. Get your insurance license. Before you can legally sell an insurance policy, you must be properly licensed by your resident state. To get properly licensed, you must pass a state-approved exam that tests your knowledge of the insurance rules and regulations set by your state. Some states allow prospective insurance producers to study for this exam on their own, but others may require you to attend an in-person class.

3. Get appointed with an insurance company. After you obtain your state’s insurance producer's license, you must get appointed with insurance companies that provide crop insurance. Choose insurance companies you would feel comfortable representing and contact their agent contracting departments. Request that a new agent appointment kit be mailed to your home. When you receive the package, complete and return the appointment documents along with a copy of your new insurance license.

4. Learn the product. Once you are appointed with your chosen insurance carrier, contact the sales department to request marketing material for the crop insurance products. Examine the material to become familiar with the specific coverage provided by the policy, as well as any limitations contained within the contract.

5. Prepare to sell. Considering your available marketing budget and local resources and decide on the best way to begin marketing and advertising your carrier’s crop insurance product line. Prepare and memorize a sales script that you can use with potential clients, as well as a telephone calling script that you can use for cold-calling prospects.

Tips & Warnings

• Many insurance carriers have pre-approved marketing material for your advertising efforts. Also, some insurance companies will allocate a certain amount of money that new agents can use to help pay for marketing campaigns. Ask your carrier’s agent support team if any marketing assistance is available.

• It is illegal to advertise or solicit the sale of insurance products without being properly licensed by your resident state. Severe penalties may be imposed if you are caught selling insurance without an active license.

References

• National Crop Insurance Services: Skills Necessary to Succeed
• United States Department of Agriculture: Crop Policies
• Journal of Extension: Continuing Education Needs of Crop Insurance Agents

Resources

• John Deere: Become a crop insurance agent