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Since 2000, INS Digital Media has been helping insurance agents build their businesses by providing professional websites and tailored web marketing solutions.
We're here to help small to large agencies leverage the web to attain business goals and drive sales. This Insurance Agent Resource Center was developed to collect different information regarding the insurance business and provide it to you.
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Start an Insurance Agency Business
Become your own boss today by starting an Insurance Agency small business. Your firm will provide insurance products to both individuals and small businesses. Typical insurance products will include health (both individual and group), homeowners, life, general and professional liability and automotive coverage. Your primary source of income will be commissions on the insurance products you sell.
Keys To A Successful Insurance Agency Business
The insurance landscape can be a roller coaster ride at times. Cash flow peaks and valleys occur frequently as you build your bookings. Focus your efforts on higher commission products such as life insurance and group health coverage. Above all, make sure you are properly licensed in your state for the types of insurance products you sell. Marketing is key to attract new customers. In your first couple years, expect to spend 50% or more of your time attracting new business.
Expanding Your Insurance Agency Business
Add-on services to your insurance agency business may very well be your biggest key to success. By adding services such as bookkeeping, accounting and tax preparation, and financial planning services, you will help build multiple streams of income for your business. By having multiple sources of revenue, your business (and your nerves) will suffer much less in periods of insurance stagnation.
Insurance Agency Expense Averages
The following table lists expense averages for a Insurance Agency business.
Based on industry averages, you should expect to pay approximately 45% of
your gross revenue on expenses. In other words, if your business earns $100,000
in gross revenue, you could expect to pay around $45,000 in expenses. The
breakdown of these expenses is found in the chart below.
| Expense Category | Expense % | Expense $ |
| Cost of Goods or Services Sold | 8% | $3,600 |
| Advertising | 3% | $1,350 |
| Benefits | 2% | $900 |
| Automobile | 19% | $8,550 |
| Commissions | 4% | $1,800 |
| Contract Labor | 1% | $450 |
| Depreciation | 5% | $2,250 |
| Entertainmnet | 2% | $900 |
| Insurance | 3% | $1,350 |
| Mortgage Interest | 1% | $450 |
| Office Supplies | 5% | $2,250 |
| Professional Fees | 2% | $900 |
| Equipment Rentals | 1% | $450 |
| Non-Equipment Rentals | 4% | $1,800 |
| Repairs | 1% | $450 |
| Salaries | 11% | $4,950 |
| General Supplies | 3% | $1,350 |
| Taxes | 1% | $450 |
| Travel | 5% | $2,250 |
| Utilities | 4% | $1,800 |
| Office | 1% | $450 |
| Other | 14% | $6,300 |
The expense averages above should not be considered financial advice. This data is taken from multiple publicly available data sources including the IRS, Small Business Administration and US Business Census figures. We provide these averages to you only as a starting point in your budget planning process.
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States Serviced
We offer website design and marketing to insurance agents located in the following states.
