How to Start an Insurance Agency in Texas
The insurance industry is very profitable, and that's one reason many people desire to start their own insurance agency. Opening an insurance company requires formulating a solid business and marketing plan. It is a sales-driven business, and individuals desiring success in insurance sales must have excellent communication skills. You must have the ability to connect customers with your product and services. Starting an insurance company in Texas requires following specific state laws. Knowing the steps to starting an insurance company in Texas will help you build a successful agency.
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Instructions
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Choose the type of insurance you want to sell. If you have experience with a particular insurance line, you'll know whether you want to open an insurance agency in that specialty. Common insurance lines include life, automobile, health and property insurance. Some insurance agencies offer more than one line of insurance to their clients.
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Apply for an insurance agent license with the Texas Department of Insurance. Inquire with the Texas Department of Insurance whether or not your insurance specialty requires examination. Each specialty has its own requirements. Mail your application and current application fee to the Licensing Division.
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Schedule an exam time. The Texas Department of Insurance use Prometric as its license vendor. Submit a fingerprint card and a Prometric insurance license application. Show up to the testing site on your scheduled day to take the exam. Once you are a licensed insurance agent in Texas, you must take continuing education courses every two years.
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Partner with a reputable insurance agency. Work with an experience insurance agent to help you build credibility in the field. You can take advantage of their marketing tools and back office resources. Contact the insurance agency you're interested in partnering with and explain your business and marketing strategies.
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Acquire funding for your insurance agency. Insurance agents depend heavily on commissions, meaning you will need enough capital to cover your business costs until you start earning a profit. Contact a local bank in Texas and the Small Business Administration about applying for a loan. Consider partnering with private investors to raise capital.
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Purchase liability insurance for your company. Check with insurance companies offering business insurance for Texas insurance agencies. Liability insurance will protect you if you're ever found liable for violating Texas insurance laws when offering your services to clients. Most insurance agencies carry errors and omissions insurance.
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Tips & Warnings
Attend conferences and workshops to stay current with what is happening in the industry.
Don't make false promises to clients in an attempt to make a sale. You can suffer severe penalties.
References
Resources
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