an insurance business plan

Insurance Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Insurance Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Insurance Agency Business Plan

You’ve come to the right place to create your own business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their insurance companies.

Essential Components of a Business Plan For an Insurance Agency

Below we describe what should be included in each section of a business plan for a successful insurance agency and links to a sample of each section:

• Executive Summary – In the Executive Summary, you will provide a high-level overview of your business plan. It should include your agency’s mission statement, as well as information on the products or services you offer, your target market, and your insurance agency’s goals and objectives.
• Company Overview – This section provides an in-depth company description, including information on your insurance agency’s history, ownership structure, and management team.
• Industry Analysis – Also called the Market Analysis, in this section, you will provide an overview of the industry in which your insurance agency will operate. You will discuss trends affecting the insurance industry, as well as your target market’s needs and buying habits.
• Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
• Competitive Analysis – This section will provide an overview of your competition, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your insurance agency from the competition.
• Marketing Plan – In this section, you will detail your marketing strategy, including your advertising and promotion plans. You will also discuss your pricing strategy and how you intend to position your insurance agency in the market.
• Operations Plan – This section will provide an overview of your agency’s operations, including your office location, hours of operation, and staff. You will also discuss your business processes and procedures.
• Management Team – In this section, you will provide information on your insurance agency’s management team, including their experience and qualifications.
• Financial Plan – This section will detail your insurance agency’s financial statements, including your profit and loss statement, balance sheet, and cash flow statement. It will also include information on your funding requirements and how you intend to use the funds.

Next Section: Executive Summary >

Insurance Agency Business Plan FAQs

What is an insurance agency business plan.

An insurance agency business plan is a plan to start and/or grow your insurance business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your insurance agency business plan using our Insurance Agency Business Plan Template here .

What Are the Main Types of Insurance Companies?

There are a few types of insurance agencies. Most companies provide life and health insurance for individuals and/or households. There are also agencies that specialize strictly in auto and home insurance. Other agencies focus strictly on businesses and provide a variety of liability insurance products to protect their operations. 

What Are the Main Sources of Revenue and Expenses for an Insurance Agency Business?

The primary source of revenue for insurance agencies are the fees and commissions paid by the client for the insurance products they choose.

The key expenses for an insurance agency business are the cost of purchasing the insurance, licensing, permitting, and payroll for the office staff. Other expenses are the overhead expenses for the business office, utilities, website maintenance, and any marketing or advertising fees. 

How Do You Get Funding for Your Insurance Agency Business Plan?

Insurance agency businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Other options for funding are outside investors, angel investors, and crowdfunding sources. This is true for a business plan for insurance agent or an insurance company business plan.

What are the Steps To Start an Insurance Business?

Starting an insurance business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Insurance Business Plan - The first step in starting a business is to create a detailed insurance business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your insurance business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your insurance business is in compliance with local laws.

3. Register Your Insurance Business - Once you have chosen a legal structure, the next step is to register your insurance business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your insurance business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Insurance Equipment & Supplies - In order to start your insurance business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your insurance business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful insurance business:

• How to Start an Insurance Business

Where Can I Get an Insurance Business Plan PDF?

You can download our free insurance business plan template PDF here . This is a sample insurance business plan template you can use in PDF format.

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Crafting an Effective Insurance Agency Business Plan

If you're an independent insurance agent, you know that success doesn't happen by chance. It requires strategic planning and a clear roadmap for the future. That's where an insurance agency business plan comes into play. 

In this guide, we'll explore what a business plan is, why it's essential, and how to create one tailored to your home insurance agency.

At a glance:

• Crafting a well-defined insurance agency business plan provides strategic direction and goal-setting for success.
• A comprehensive business plan allows for adaptability in an ever-evolving industry.
• Defining your brand, researching funding options, and staying compliant with regulations, are the ingredients that can transform your business plan into an effective tool for growth.

Benefits of having a business plan

Having a solid roadmap is like holding a compass in a dense forest. It not only guides you on how to become a successful insurance agency, but also ensures you stay on course.

Strategic direction

So let’s continue that analogy: you’re on a road trip without a map, compass, or GPS. You might eventually reach your destination, but it would be a long and uncertain journey. Similarly, running an insurance agency without a business plan is like traveling without a guide. A well-crafted plan provides a clear path and helps you stay focused on your goals.

Goal setting

Setting realistic and achievable goals is vital for any business. Your insurance agency business plan acts as a compass, allowing you to establish clear objectives. Whether you want to increase your client base, revenue, or expand your services, a business plan helps you chart the course.

Investor confidence

If you find yourself in a place to seek external funding, whether from investors or lenders, a comprehensive business plan is a must. It demonstrates that you've thought through your business strategy, increasing your chances of securing financial support.

Adaptability

The insurance industry is never stagnant, and as such adaptability is key. A business plan isn't set in stone; it's a living document that can be adjusted as circumstances change. If done correctly, it allows you to stay flexible and make informed decisions as market trends shift.

Key components of an insurance agency business plan

Your business plan is the document that transforms your vision into a tangible reality, ensuring your journey as an independent insurance agent is not only successful but prosperous too. 

Let’s explore the key components of an effective business plan, including the executive summary, company overview and more. 

Executive summary

The executive summary serves as the elevator pitch for your entire business plan. It's designed to capture the reader's attention and give them a quick, compelling overview of your insurance agency. You'll want to concisely highlight your agency's mission, vision, and goals. Think of it as distilling your agency's essence into a few powerful sentences. It's an invitation for the reader to learn more about your agency's journey.

Company overview

The company overview is your opportunity to introduce your insurance agency in detail. It's where you set the stage for the rest of your business plan. In this section, you’ll want to dive into the history of your agency, including its founding story, location(s), and size. You should also describe every type of insurance product you offer and provide a snapshot of what makes your agency unique.

Industry analysis

The industry analysis puts your industry knowledge to good use. It's all about understanding the broader insurance market, including its trends, challenges, and opportunities. In this section, you'll research and present data and insights into the insurance industry. Discuss market trends, regulatory changes, and any challenges that could impact your independent agency. Identifying opportunities within the industry allows you to position your agency effectively to take advantage of them.

Customer analysis

Understanding your target market is essential for tailoring your services and marketing efforts effectively. Create detailed buyer personas that encompass their needs, preferences, and pain points. This information is the foundation for developing products and services that resonate with your audience.

Competitive analysis

Knowing your competition is about gaining insights into their strengths and weaknesses. When performing your market analysis, or market research, be sure to look at factors like their market share, marketing strategy, pricing models, and customer service practices. Understanding how you stack up against the competition will help you develop a winning strategy that sets your agency apart.

Marketing plan

Your marketing plan is the strategic playbook for how you'll attract and retain clients. Specify your marketing channels, both online and offline; outline your budget and set measurable goals. Whether it's through digital advertising, content marketing, or print advertising, your marketing plan should maximize your independent insurance agency's reach and impact.

Operations plan

The operations plan is the behind-the-scenes blueprint for how your independent agency runs day-to-day. Detail your team structure, office setup, and technology requirements. It's about ensuring smooth workflow and efficient service delivery. This section gives a clear picture of how your agency operates on a daily basis.

Management team

Your management team is the engine that drives your agency. Introduce the key members of your management team and highlight their expertise. Explain how their skills and experiences contribute to the agency's success. 

Financial plan

The financial plan is the heart of your business plan. It's where you demonstrate that your agency is not just a vision but a financially viable venture. For any enterprise, including insurance agencies, it’s important to provide detailed financial projections in your business plan, including income statements, balance sheets, and cash flow statements. Set clear financial goals and explain how you intend to achieve them.

Tips for creating an effective insurance agency business plan

Creating an insurance agency business plan is akin to crafting that roadmap we talked about earlier. But here's the twist—this isn't just any road; it's twisting and on an ever-changing landscape. To navigate it successfully, you need more than just directions; you need insider tips and tricks.

Define your brand

Your brand is more than just a logo; it's who you are. Define your brand identity, including your mission statement, core values, and unique selling proposition. A strong brand will set you apart in a crowded market.

Research funding options

If you need capital to start or expand your agency, explore different funding options, which could include personal savings, loans, or investors. Your business plan should outline your funding needs and how you intend to secure the necessary capital.

Apply for licenses

Ensure that you comply with all regulatory requirements in your area. This includes obtaining the necessary licenses and insurance policies to operate legally. Failing to do so could jeopardize your agency's success.

Set goals and establish metrics

Your business plan should include specific, measurable, and time-bound goals. Track key performance indicators to measure your progress and adjust your strategy accordingly. Regularly reviewing and updating your plan keeps you on the path to success.

A strategic roadmap for success

For an independent insurance agency, a well-crafted business plan is not simply a document; it's a dynamic tool that provides strategic direction, fosters adaptability, and instills investor confidence. By defining your brand, understanding your market, and detailing your operational and financial strategies, your insurance agency business plan becomes the compass guiding you through the complexities of the industry. 

With clear goals, a solid management team, and a proactive approach to change, your agency can navigate the insurance industry effectively, ensuring not only agency survival but also sustainable growth

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About the Author

Alyssa Little | Senior Content Strategist

Alyssa is the Senior Content Strategist at Openly, collaborating with industry thought leaders to provide insightful and informative content in the home insurance space. With over 15 years experience in content marketing strategy, copywriting, and editing, Alyssa has refined her expertise through her work at such companies as Gartner, Nike, and Trupanion. Alyssa holds a BA in History from the University of Puget Sound and an MA in Museum Studies from Newcastle University.

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How To Write an Insurance Agency Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for insurance agencies that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every insurance agency owner should include in their business plan.

Download the Ultimate Insurance Business Plan Template

What is an Insurance Agency Business Plan?

An insurance agency business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an Insurance Agency Business Plan?

An insurance agency business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Insurance Agency Business Plan

The following are the key components of a successful insurance agency business plan:

Executive Summary

The executive summary of an insurance agency business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your insurance agency
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your insurance agency business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your insurance agency firm, mention this.

You will also include information about your chosen insurance agency business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of an insurance agency business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the insurance agency industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, customers of an insurance agency may include individuals, families and small businesses.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or insurance agency services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your insurance agency may have:

• In-depth knowledge of the insurance industry
• Broad product offering
• Customer focus and commitment to service
• Well-trained and experienced team
• Proven track record

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. 
• Or, you may promote your insurance agency via a mix of all the channels listed.  

Operations Plan

This part of your insurance agency business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an insurance agency include reaching $X in sales. Other examples include signing up a certain number of customers, expanding to a new location, or launching a new product or service.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific insurance industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Insurance Agency

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Insurance Agency

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup insurance agency .

Sample Cash Flow Statement for a Startup Insurance Agency

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your insurance agency . It not only outlines your business vision, but also provides a step-by-step process of how you are going to accomplish it. All in all, a business plan is a key to the success of any business.  

Finish Your Insurance Agency Business Plan in 1 Day!

Sample Insurance Business Plan

Writing a business plan is a crucial step in starting an insurance company. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring insurance company owners, having access to a sample insurance business plan can be especially helpful in providing direction and gaining insight into how to draft their own insurance business plan.

Download our Ultimate Insurance Business Plan Template

Having a thorough business plan in place is critical for any successful insurance venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. An insurance business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The insurance business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your insurance company as Growthink’s Ultimate Insurance Business Plan Template , but it can help you write an insurance business plan of your own.

Insurance Business Plan Example – SafeGuard Assurance

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to SafeGuard Assurance, located in the heart of Fresno, CA. As a novel insurance provider, we are dedicated to understanding and serving the unique needs of our local residents and businesses. Our comprehensive array of products and services includes Insurance Coverage Evaluation, Policy Issuance and Management, Claims Processing and Settlement, alongside Risk Management Consulting and Customer Support and Education. With a foundation built on excellence and a deep understanding of the insurance landscape, we are committed to becoming the premier choice for those seeking reliable and comprehensive coverage. Our strategic positioning within Fresno allows us to make a significant impact in our community, setting us apart as an ideal partner for insurance solutions.

Our success is underpinned by several key factors. The invaluable experience of our founder, who has previously steered an insurance enterprise to success, provides us with a foundation of proven strategies and insights. Our superior insurance expertise enables us to deliver unmatched service and value to our clients, distinguishing us from our competitors. Since launching as an S Corporation on January 4, 2024, we’ve achieved significant milestones, including developing our brand identity, securing a prime headquarters location, and more. These accomplishments mark our journey towards becoming Fresno’s leading insurance provider.

The insurance industry in the United States, with total premiums exceeding $1.3 trillion in 2020, plays a crucial role in the economy and financial stability. Projected to grow at an annual rate of around 3.5% from 2021 to 2025, the industry’s expansion is driven by increasing awareness of insurance importance, technological advancements, and evolving customer needs. For SafeGuard Assurance, this growth presents an opportunity to leverage industry trends like digital platforms and personalized policies to offer tailored insurance solutions. Located in Fresno, CA, our company is well-positioned to capitalize on these developments, establishing a competitive presence in the expanding insurance market.

SafeGuard Assurance targets Fresno’s local residents and small to medium-sized businesses, aiming to meet their diverse insurance needs with comprehensive solutions. Our strategy focuses on creating customized offerings for young professionals, established families, agricultural businesses, and real estate investors, ensuring access to suitable coverage. By catering to specific niche markets within Fresno, we plan to address the unique insurance requirements of these segments, providing valuable protection and peace of mind, and building a strong, loyal customer base in the process.

Our main competitors in the Fresno area include Sara Sordi Insurance Services, known for personalized customer service and local market knowledge; Kurt Sieve – State Farm Insurance Agent, which combines local service with the backing of a national brand; and Gennock Insurance, recognized for its specialization and affordable pricing strategy. Despite the strengths of these competitors, SafeGuard Assurance’s unparalleled insurance expertise and commitment to leveraging the latest technology provide us with a competitive advantage. Our ability to offer customized solutions and a customer-centered digital approach sets us apart, ensuring we meet the evolving needs of our clients more effectively than our competitors.

SafeGuard Assurance provides a comprehensive suite of services, including Insurance Coverage Evaluation, Policy Issuance and Management, Claims Processing and Settlement, Risk Management Consulting, and Customer Support and Education. Our competitive pricing and commitment to excellence position us as a trusted partner in our clients’ financial security. Our promotional strategy encompasses a blend of online marketing, traditional advertising, email campaigns, community engagement, and referral programs. By leveraging these methods, we aim to attract and retain customers in Fresno, CA, and establish SafeGuard Assurance as a leader in the insurance industry.

To ensure our success, SafeGuard Assurance will focus on key operational processes including customer inquiries and support, policy management, claims processing, financial management, regulatory compliance, marketing and sales, human resources and training, and technology and data management. Our upcoming milestones include securing necessary licenses, establishing our product lines, launching the company, forming strategic partnerships, implementing a risk management system, recruiting a skilled team, achieving operational efficiency, reaching $15,000/month in revenue, establishing a strong customer service reputation, and evaluating and adjusting our business strategies accordingly.

Under the leadership of Grace Roberts, our President, SafeGuard Assurance boasts a management team with the expertise to successfully execute our business plan. Grace’s extensive experience in the insurance industry, marked by strategic growth and a commitment to customer satisfaction, provides us with the guidance needed to achieve our long-term objectives. Her deep understanding of market dynamics, regulatory compliance, and risk management is instrumental in fostering a culture of excellence and integrity within our organization.

Welcome to SafeGuard Assurance, a new insurance provider serving the vibrant community of Fresno, CA. As a local insurance company, we understand the unique needs of our residents and businesses, setting us apart in a region where high-quality local insurance options have been limited. Our commitment to excellence and deep understanding of the insurance landscape positions us as a premier choice for those seeking reliable and comprehensive coverage.

At SafeGuard Assurance, our array of products and services is carefully designed to meet the diverse needs of our customers. We specialize in Insurance Coverage Evaluation, ensuring our clients receive the most appropriate and cost-effective coverage. Our seamless Policy Issuance and Management processes are designed to provide peace of mind, while our Claims Processing and Settlement services are efficient and customer-focused. Recognizing the importance of proactive measures, we also offer Risk Management Consulting to help our clients minimize potential risks. Moreover, we are dedicated to Customer Support and Education, ensuring our clients are well-informed and confident in their insurance decisions.

Rooted in the heart of Fresno, CA, SafeGuard Assurance is strategically positioned to serve and make a significant impact within our local community. Our deep understanding of the local market dynamics, paired with our commitment to personalized service, makes us an ideal partner for individuals and businesses in Fresno.

Our ability to succeed is rooted in several key factors. Firstly, our founder brings invaluable experience from successfully running a previous insurance enterprise, ensuring that SafeGuard Assurance is built on a foundation of proven strategies and insights. Additionally, our superior insurance expertise distinctly sets us apart from our competitors, enabling us to provide unmatched service and value to our clients.

Since our inception on January 4, 2024, SafeGuard Assurance has made significant strides as a S Corporation. We’ve accomplished several key milestones, including the creation of our distinctive logo, the development of our brand name, and securing a prime location for our headquarters. These achievements mark the beginning of our journey towards becoming a leading insurance provider in Fresno, CA.

The insurance industry in the United States is a massive market, with total premiums reaching over $1.3 trillion in 2020. This figure represents the size and importance of the industry in the country, providing a wide range of coverage options for individuals, businesses, and organizations. With such a substantial market value, the insurance industry plays a crucial role in the overall economy and financial stability.

The insurance market in the United States is expected to continue growing in the coming years, with a projected annual growth rate of around 3.5% from 2021 to 2025. This growth is driven by various factors, including an increasing awareness of the importance of insurance coverage, technological advancements in the industry, and evolving customer needs. As the market expands, there will be more opportunities for insurance companies to offer innovative products and services to meet the changing demands of consumers.

Recent trends in the insurance industry, such as the rise of digital platforms, personalized policies, and a focus on customer experience, bode well for SafeGuard Assurance, a new insurance company serving customers in Fresno, CA. By leveraging these trends and offering tailored insurance solutions to meet the specific needs of individuals and businesses in the area, SafeGuard Assurance can position itself as a competitive player in the market. With the industry’s overall growth and evolving landscape, there is ample room for SafeGuard Assurance to thrive and establish a strong presence in the insurance sector.

Below is a description of our target customers and their core needs.

Target Customers

SafeGuard Assurance will target local residents in its initial customer base, focusing on providing comprehensive insurance solutions that meet the diverse needs of this community. The company will tailor its offerings to suit the unique requirements of Fresno’s residents, ensuring that everyone from young professionals to established families has access to suitable coverage. This strategy is central to building a strong, loyal customer base in the area.

Aside from local residents, SafeGuard Assurance will also aim to serve small and medium-sized businesses within Fresno. This segment represents a significant opportunity for growth, as these entities seek to protect their assets, employees, and potential liabilities. By offering customized insurance packages that cater specifically to the business sector, SafeGuard Assurance will position itself as a key partner in the local economy’s health and resilience.

Furthermore, SafeGuard Assurance will target specific niche markets within the broader Fresno community, such as agricultural businesses and real estate investors. These sectors have unique insurance needs that are not always adequately met by larger, more generic insurers. By developing specialized insurance products for these niches, SafeGuard Assurance will tap into underserved markets, offering them valuable protection and peace of mind.

Customer Needs

SafeGuard Assurance meets the critical needs of residents by offering high-quality insurance services designed to provide peace of mind and financial stability in times of need. Customers can expect personalized attention and products tailored to their unique circumstances, ensuring that their coverage matches their lifestyle and risk profile. This commitment to excellence sets the foundation for a trusted relationship between the insurer and the insured.

Moreover, SafeGuard Assurance goes beyond traditional insurance offerings by incorporating comprehensive support and guidance. Customers can rely on an experienced team of professionals who are readily available to assist with claims, answer questions, and provide advice on how to best protect their assets. This proactive approach to customer service ensures that individuals feel supported and valued throughout their insurance journey.

Additionally, the company addresses a broader spectrum of customer needs by ensuring ease of access to information and services. Through a user-friendly online platform and mobile application, customers can manage their policies, make payments, and access important documents with ease. This convenience empowers customers, allowing them to take control of their insurance experience in a way that fits their busy lifestyles.

SafeGuard Assurance’s competitors include the following companies:

Sara Sordi Insurance Services offers a comprehensive range of insurance products, including home, auto, life, and business insurance. They tailor their services to meet the unique needs of each client, ensuring personalized coverage options. Price points vary depending on the type and extent of coverage desired by customers, but they are competitive within the Fresno market. The firm operates primarily in the Fresno area, focusing on local residents and businesses. This geographic concentration allows them to develop strong relationships with their clients and understand the specific risks and needs associated with the region. Sara Sordi Insurance Services segments its customer base primarily by individual and small to medium-sized businesses, catering to a broad demographic that values personalized service and local expertise. A key strength of Sara Sordi Insurance Services is their personalized customer service and local market knowledge. However, their focus on Fresno may limit their appeal to customers outside this geographic area, representing a potential weakness in their business model.

Kurt Sieve – State Farm Insurance Agent specializes in a wide array of insurance products such as auto, home, property, business, life, and health insurance. They leverage the strong brand and comprehensive support services of State Farm to offer customers in Fresno reliable and diverse coverage options. Pricing is competitive and often bundled for customers seeking multiple types of insurance, providing cost-saving opportunities. The agency’s location in Fresno positions it well to serve the local community, but as part of the broader State Farm network, it can leverage national resources and expertise. This enables Kurt Sieve to serve a diverse range of customers, from individuals to families and businesses, catering to their varied insurance needs. A significant strength of Kurt Sieve – State Farm Insurance Agent is the blend of local personalized service with the backing of a nationally recognized brand. However, as part of a larger corporation, there might be less flexibility in customizing policies to the unique needs of certain clients, potentially a weakness for those seeking highly tailored insurance solutions.

Gennock Insurance provides specialized insurance products focusing on auto, home, and commercial insurance. They offer competitive pricing models that are designed to be affordable for a wide range of customers, including discounts for bundling multiple policies. Their services are aimed at ensuring clients receive the best possible coverage for their specific situation. Operating within the Fresno area, Gennock Insurance has a strong understanding of the local market dynamics and insurance requirements. This local focus allows them to serve individuals and businesses within Fresno effectively, tailoring their offerings to meet the community’s needs. The company’s key strength lies in its specialization and affordable pricing strategy, making it an attractive option for price-sensitive customers. However, their narrower focus on auto, home, and commercial insurance might limit their appeal to customers seeking a broader range of insurance products under one roof, which could be viewed as a weakness.

Competitive Advantages

Our competitive edge in the insurance market is significantly sharpened by our unparalleled insurance expertise. We understand that navigating through insurance policies can be overwhelming for our customers. That’s why we equip our team with extensive training and up-to-date knowledge about the insurance industry. This ensures that we not only guide our customers to the best options that suit their needs but also simplify the complex terms and conditions of insurance policies. Our expertise allows us to tailor unique solutions for our customers, making us a preferred choice over competitors who may offer generic services.

Additionally, our commitment to leveraging the latest technology in our operations bestows upon us another competitive advantage. By integrating advanced tech solutions, we can offer faster service, more accurate policy management, and enhanced customer service. This digital approach not only streamlines our processes but also provides our customers with an easy and efficient way to manage their policies, file claims, and get support. It’s this forward-thinking and customer-centered approach that sets us apart in the Fresno market, ensuring that our customers receive not just insurance, but assurance of safety and security. Our aim is to exceed expectations, providing a service that’s not just about policies, but about people.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

SafeGuard Assurance emerges as a key player in the insurance industry, offering a comprehensive suite of services designed to meet the diverse needs of its clientele. At the heart of its offerings is Insurance Coverage Evaluation, a critical service priced on average at $150. This service enables clients to understand their current insurance coverage comprehensively, ensuring they are neither underinsured nor overpaying for unnecessary coverage. This personalized evaluation aids in making informed decisions regarding insurance investments, aligning coverage with the client’s specific needs and risk profile.

Following the evaluation, SafeGuard Assurance excels in Policy Issuance and Management, with services starting at an average cost of $200. This encompasses the drafting, issuance, and ongoing management of insurance policies. Tailored to meet individual or business requirements, this service ensures that policies remain relevant and up-to-date with the client’s evolving needs, offering peace of mind and security against unforeseen events.

Claims Processing and Settlement is another critical service provided, with fees averaging around $100 per claim. This service streamlines the typically cumbersome process of filing and settling claims, offering clients a hassle-free experience. SafeGuard Assurance prioritizes efficiency and transparency in this process, ensuring clients receive the compensation they are entitled to in a timely manner, thus mitigating the financial impact of accidents, damages, or losses.

Risk Management Consulting is offered at an average price of $250, reflecting its comprehensive nature. This service involves a detailed analysis of the client’s exposure to potential risks, followed by the development of strategies to minimize or mitigate these risks. By identifying vulnerabilities and recommending protective measures, SafeGuard Assurance plays a crucial role in safeguarding the client’s assets and financial health against potential threats.

Lastly, Customer Support and Education stand as core components of SafeGuard Assurance’s offerings, with services provided at no additional cost. This encompasses ongoing support for any questions or concerns clients may have regarding their policies, as well as educational resources and workshops designed to enhance their understanding of insurance products, risk management, and best practices for securing their assets. This commitment to customer education and support underscores SafeGuard Assurance’s dedication to empowering clients, ensuring they are well-informed and confident in their insurance choices.

In conclusion, SafeGuard Assurance offers a broad spectrum of services tailored to protect and educate its clients, ensuring they are well-equipped to navigate the complexities of the insurance landscape. With competitive pricing and a commitment to excellence, SafeGuard Assurance positions itself as a trusted partner in securing the financial future of individuals and businesses alike.

Promotions Plan

SafeGuard Assurance takes a comprehensive approach to attracting customers through a variety of promotional methods, with a strong focus on online marketing. Understanding the digital landscape allows this company to effectively reach its target audience in Fresno, CA, and beyond. Online marketing tactics include search engine optimization (SEO) to ensure that SafeGuard Assurance appears at the top of relevant search results, making it easier for potential customers to find their services. Additionally, the company will leverage social media platforms to engage with the community, share valuable insurance-related content, and advertise their services directly to users based on their interests and demographics.

Beyond online marketing, SafeGuard Assurance will also invest in traditional advertising methods. This includes placing ads in local newspapers and magazines to reach those in the Fresno area who may prefer print media. Radio spots will also serve as an effective tool to reach a broader audience during peak listening times, conveying the value and reliability of SafeGuard Assurance’s offerings.

Email marketing campaigns will be another cornerstone of the promotional strategy. By collecting email addresses through their website and in-person interactions, SafeGuard Assurance will send out regular newsletters, special offers, and updates about their services. This direct line of communication will help to build and maintain relationships with current and prospective customers alike.

Community engagement is also a critical component of the promotional strategy. SafeGuard Assurance will participate in local events, sponsor community projects, and host informative seminars about insurance and financial planning. These efforts will not only increase brand visibility but also position SafeGuard Assurance as a trusted and integral part of the Fresno community.

Referral programs will incentivize current customers to refer friends and family, effectively turning satisfied customers into brand ambassadors. This word-of-mouth marketing is invaluable and will be supported by offering discounts or special offers for both the referrer and the referee.

In conclusion, SafeGuard Assurance employs a multi-faceted promotional strategy that combines the power of online marketing with traditional advertising, email campaigns, community engagement, and referral programs. These efforts are designed to not only attract customers in Fresno, CA, but also to build lasting relationships and establish SafeGuard Assurance as a leader in the insurance industry.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of SafeGuard Assurance, there are several key day-to-day operational processes that we will perform.

• Handle customer inquiries promptly via phone, email, and social media platforms to maintain high customer satisfaction.
• Provide detailed information on insurance products and services to potential and existing customers.
• Resolve any issues or complaints in a timely and efficient manner.
• Process new insurance applications, including verification of information and risk assessment.
• Update and modify existing policies as per customer requests or upon renewal.
• Ensure all policy documents are accurate and dispatched to customers promptly.
• Receive and review insurance claims to determine validity and coverage.
• Coordinate with assessors and claimants to gather necessary documentation and evidence.
• Process approved claims for payment and inform claimants of any decisions or requirements.
• Monitor daily financial transactions, including premium payments and claim disbursements.
• Prepare and analyze financial reports to ensure financial stability and profitability.
• Manage budgeting and forecasting to support strategic decision-making.
• Stay updated on insurance laws and regulations to ensure company compliance.
• Prepare and submit required reports and documents to regulatory bodies.
• Implement internal policies and procedures to meet or exceed regulatory standards.
• Develop and execute marketing strategies to attract new customers and retain existing ones.
• Conduct market research to identify customer needs and adjust product offerings accordingly.
• Collaborate with sales teams to set sales targets and strategies to achieve them.
• Recruit, hire, and onboard new staff to fill key positions within the company.
• Conduct regular training sessions for employees to enhance their skills and knowledge.
• Manage employee performance and development to maintain a motivated and efficient workforce.
• Implement and maintain IT systems to support operations, including customer management and financial systems.
• Ensure data security and privacy measures are in place to protect sensitive customer information.
• Analyze data to identify trends and insights for improving service delivery and business performance.

SafeGuard Assurance expects to complete the following milestones in the coming months in order to ensure its success:

• Obtain Necessary Licenses and Permits : Secure all required state and local licenses to legally operate as an insurance provider in Fresno, CA. This step is fundamental and ensures that the company operates within legal boundaries, establishing trust with potential customers and partners.
• Establish Insurance Product Lines : Finalize the types of insurance products SafeGuard Assurance will offer, such as auto, health, home, and life insurance. Tailoring product offerings to meet the specific needs of the Fresno community will be key to attracting and retaining customers.
• Launch Our Insurance Company : Officially open for business. This includes launching marketing campaigns to build brand awareness, opening the customer service lines, and ensuring the company’s website and digital channels are fully operational for quotes, purchases, and claims processing.
• Build Strategic Partnerships : Form alliances with local businesses, such as car dealerships, real estate agencies, and healthcare providers, to cross-promote services and products. These partnerships can enhance customer base growth and reinforce market presence.
• Implement a Robust Risk Management System : Develop a comprehensive system for assessing and managing the risks associated with the insurance policies offered. This will help in pricing products correctly, avoiding fraudulent claims, and ensuring financial stability.
• Recruit and Train a Skilled Team : Hire a team of professionals who are not only skilled in insurance but are also familiar with the Fresno market. Training should focus on customer service, claims processing, and compliance with insurance regulations to ensure a high level of service quality.
• Achieve Operational Efficiency : Streamline operations through technology and process improvements to reduce costs, improve customer experience, and enhance claim processing speed. Operational efficiency will be crucial for profitability and competitiveness.
• Get to $15,000/Month in Revenue : This financial milestone will be a strong indicator of market acceptance and the effectiveness of SafeGuard Assurance’s business strategies. Achieving this milestone will also provide the necessary cash flow to support ongoing operations and future growth initiatives.
• Establish a Strong Customer Service Reputation : Develop a reputation for excellent customer service by efficiently handling claims, inquiries, and complaints. Positive word-of-mouth and customer reviews can significantly influence new business and retention rates.
• Evaluate and Adjust Business Strategies : Regularly review business performance against goals, market trends, and competitive activities. Be prepared to adjust strategies, including marketing, product offerings, and customer service approaches, to ensure continued growth and success.

SafeGuard Assurance management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Grace Roberts, President

With a proven track record of steering companies towards success, Grace Roberts stands as a beacon of leadership and innovation within the insurance industry. Her tenure as the head of a previous insurance company is marked by strategic growth, operational excellence, and an unwavering commitment to customer satisfaction. Grace’s extensive experience in navigating the complex landscape of insurance has endowed her with a deep understanding of market dynamics, regulatory compliance, and risk management. These skills are not only pivotal in her role as President of SafeGuard Assurance but also instrumental in guiding the company towards achieving its long-term objectives and fostering a culture of excellence and integrity.

To reach our growth goals, SafeGuard Assurance requires $322,000 in funding. This investment will be allocated towards capital investments such as location buildout, furniture, equipment, computers, and non-capital investments including working capital, initial rent/lease, staff salaries for the first three months, initial marketing and advertising, supplies, and insurance. This funding is crucial for establishing our operations, ensuring we can effectively serve the Fresno community and achieve our objectives.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Insurance Business Plan Example PDF

Download our Insurance Business Plan PDF here. This is a free insurance business plan example to help you get started on your own insurance company plan.  

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Launch Your New Insurance Agency With This Business Plan Template

Whether you're a brand new agent or one with several decades of experience, the idea of opening a new insurance agency probably seems daunting—where do you start?

One of the first things you’ll need to do is come up with a business plan for your insurance agency. After all, you can walk into a bank or a potential investor’s office looking for funding, but you won’t get very far unless you have a robust insurance agency business plan that proves you’re on the right track toward turning a profit in the near future.

Follow the steps below when building out your insurance business plan to maximize your chances of securing funding and getting your new agency off to a strong start.

7 Steps To Build Your Insurance Agency Business Plan

1. develop your executive and business summaries..

In business plan terms, the executive summary is the driving force behind your other decisions. It should explain why you’re starting your agency. The business summary is similar, but it should narrow down your “why” into a list of “hows.”

Ask yourself:

• Why do you want to open an agency?
• What types of insurance do you wish to sell?
• What do you hope to accomplish?
• What return on investment do you expect to receive?
• How are you going to generate demand and ensure supply for your service?

Jot your answers down so you can refer back to them as you move forward.

2. Decide whether you want to be a captive agent or an independent agent.

Many large agencies, such as Allstate and Farmers, work with captive agents who can only sell insurance for that specific provider. Independent agents, on the other hand, can sell insurance for multiple providers, but they get locked out of working with the big-name captive carriers who only work with captive agents. (Read more about captive agents here and get a seasoned agent’s POV on both types of agents here. )

Before you can nail down the details of the rest of your business plan, you’ll have to make a choice between these two options.

3. Do a market analysis.

Though it might seem like a tedious process, conducting a thorough market analysis is crucial to your success. Analyzing your local market—including the backgrounds, shopping behaviors, and preferences of your target customers—gives you the insights you’ll need to attract these folks to your business.

Your market analysis will look a little different depending on whether you prefer to be a captive or an independent agent. The state you live in is another factor that will affect your analysis—in fact, it may even influence your decision to be captive or independent.

Take a close look at the demographics of your region.

• How many homeowners live in your state?
• What’s the average insurance premium per home?
• How many people live in each home, on average?
• How many drivers live in your state?
• How many vehicles does the average household own?
• Do you live in an area with an aging population ?
• How many families live in your region?
• What insurance carriers do locals in your state gravitate toward?
• In your area, what might be some successful strategies for retaining clients (rather than just acquiring them)?

These questions are all important, but pay particular attention to the last one. If you open an agency without a plan for client retention, you’re going to struggle. And, unfortunately, this is one of the most overlooked aspects of an insurance agency business plan.

4. Identify where you’ll find your first clients.

It’s one thing to know there are X number of potential clients living in your state, but it’s quite another to have a plan that will help you reach out to those folks and land your first policy sales.

Some investors will require a list of leads before they’ll even consider funding your agency. Even if it’s not a requirement, it’s always a good idea to have a pipeline ready to go. This is where getting set-up for purchasing warm leads from EverQuote can put you in a great position for success.

Plus, tackling this step before you even open your doors will help you better understand the costs you’ll incur—and therefore how much startup funding you will need.

You might also consider other options, such as placing ads in local newspapers, going to networking events, investing in digital marketing, sponsoring local Little League teams, or asking for referrals.

5. Create a financial plan.

Many new agencies fail because their owners overlooked something critical during startup. Do your best to look at your financial plans from every angle:

• Where will you find leads, and how much will they cost?
• What is your advertising budget?
• Does this budget line up with the going rates of local newspapers, billboards, or online ads?
• Do you plan to have 1099 employees or W2 employees selling insurance for your agency?
• How will you decide on a commission and benefits structure for these employees?
• What retention and loss ratios (for clients and employees) do you expect based on the numbers of other agencies in your area?
• How will you handle the delay between policy renewals and income hitting your bank account?
• If there are X amount of people shopping for insurance in your area, what percentage of those people are in a niche you can serve?
• From that percentage of potential clients, how many do you think you can successfully land?
• If you sell policies to these customers, how much will you earn from their premiums?
• How do your projected profits compare to your expected advertising costs, the cost to buy leads, office rent, and other expenses?

Take detailed notes of your calculations, and try to run the numbers a few different ways to obtain a conservative outcome, a likely outcome, and a “best case scenario.”

6. Draw up a formal business plan using a proven format.

Your notes will be incredibly valuable as you move forward, but you’ll need a way to present them clearly and concisely in a way that looks attractive to investors.

Loan officers and investors don’t want to read long-form essays detailing your business background and your ideas for the future. Keep your format simple and straightforward, with clear sections that answer the questions investors will want to know.

We recommend a format similar to the following:

Executive Summary Overall mission Primary objectives Keys to success Financial plans Profit forecast for at least three years Business Summary Business overview Summary of startup costs Funding you’ll require Company executives/ownership Services Services you provide Market Analysis Overall business analysis Details of your competition Buying patterns of your competition Your planned buying patterns Market segmentation and analysis Target market strategies Include details for each market segment Strategy Your competitive edge Marketing strategy Sales strategy Yearly sales projections Key milestones Management Your plan for finding staff Financial Plan Funding you have accepted Funding you will need Detailed startup costs Calculations for your break-even point Projected profit Yearly profit Gross and net yearly profit Anticipated losses, if any Cash flow patterns Plans for balance sheet Calculations of important business ratios

7. Revise and adjust your plan over time.

You may not secure funding for your agency immediately. Even if you do, you’ll likely find that your real world numbers don’t match up exactly with your calculated projections. Plus, carriers frequently change their underwriting policies, and the economy itself is always in a state of flux.

Keep your business plan current by updating the information anytime circumstances change.

Start your journey with a full lead pipeline from EverQuote.

One of the scariest parts about starting a new agency is not being certain where and when you’ll be able to start making sales.

Skip the fear and the unknown and go right to making sales with warm real-time leads from EverQuote. Whether you’re still trying to find startup funding or your doors are already open, you can always boost your business and maximize your chances of a steady income by working with EverQuote.

Connect with us today.

Topics: Featured , Insurance Agency Growth

About the Author Chris Durling, VP of P&C Sales

Chris Durling is a visionary leader in P&C insurance sales and distribution, with over 10 years of experience in the industry.

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How to Create a Business Plan for an Insurance Agency

If the adage is true that even the greatest enthusiasm is no substitute for planning, independent insurance agents know that both are required in order for an agency to succeed.

An insurance agency business plan is therefore essential, especially for brand-new agencies in addition to established firms. A thoughtfully developed plan provides you direction for your efforts and structure for ongoing business development.

Without a plan, all you have is good intentions – and those won’t get you where you want to go. A map, on the other hand, will.

With this in mind, let’s dive into how to create a business plan for insurance agents and the things you’ll need to do to set your agency on the path to success.

Why is an agency business plan important?

A well-constructed insurance agency business plan helps you to set realistic goals, define your needs for specific resources, and focus your attention on the essential must-dos for accelerating your business.

As the principal, you must continually refine your vision for what you ultimately want to achieve: the type of business you want to run, its operations, its cash flow, its culture, and its workflows. Then, you can list the necessary steps to reverse-engineer the ideal agency that you’ve pictured.

Not only will the business plan for your insurance agency serve as a tool for internal management and decision-making, but it’s also extremely useful in conveying the vision for your business to other parties. Among these are investors, lenders, and potential partners – and new insurance carriers will often want to review your agency’s business plan before they’ll partner with you.

It’s worth noting that over time, the business plan for an insurance agency can and will change, and the agency owner must be flexible in both thought and execution as a new agency is forged. For example, you may envision writing a large portion of your agency’s book of business in a certain line, and later discover that market conditions or intense competition will encourage you to pivot to other lines that may also prove profitable.

What should be included in the business plan for an insurance agency

Agency principals will create a comprehensive summary that mindfully considers everything from the agency’s location and target markets to the products it will offer.

To get started, let’s review the various sections that make up a comprehensive business plan, and how each section contributes to the overall plan’s effectiveness.

Your insurance agency business plan should run about 5,000 words, outlining the following in detail:

• An executive summary detailing your “vision” for your agency
• Description of your company
• List of the insurance products your agency plans to offer
• Business analysis of your market
• Your agency’s marketing strategy
• Organizational structure
• Your agency’s financial plan
• Agency funding needs

If you’re already thinking, “I’m not a writer; I can’t do this,” fear not. You’re summarizing what you’re setting out to achieve and how you plan to get there – not writing a sonnet. Once you start writing, you’ll be surprised how far you’ll get.

The aforementioned word count, while a solid goal, isn’t set in stone. Don’t pad what you’re writing; stick to the facts. In the end, your business plan should be thorough, useful to you, and appealing to investors.

Let’s break down each of these sections one by one.

Executive summary

Think of this section as a concise overview of the overall business plan for your agency – your mission statement. Include highlights of your agency’s mission, goals, and its competitive advantage. Highlight your agency’s projected growth and potential profitability.

Be realistic and truthful in your assessments. It’s good to be optimistic, but not pie-in-the-sky level, especially for new agencies. Remember, you could find yourself answering to an investor sometime in the future.

Company description

Here’s where you explain what makes your agency special. Tell your story powerfully. What’s your vision for your organization? How would you describe your company culture ? How do you recruit new talent ?

What is your target market? What are your customer demographics? Who will be selling, and what are their strengths? How do you manage your relationships with your insurance carrier partners? What types of agency technology do you leverage in your customer service efforts?

Offer details on what you consider your unique selling proposition. Do you offer specialization in certain lines of business? If so, explain the inherent value in the expertise you possess.

Keep this question in mind as you write: What makes your firm exceptional, and why would someone want to invest in it?

List of products

The composition of your agency’s book of business is critical , and here you’ll lay out exactly what products you’re selling (or plan to sell). Provide a detailed breakdown of the insurance products and services offered by your agency, including a brief explanation of each product’s features and benefits.

In addition, include ideas for expanding your product lineup in years to come.

Market analysis

Investors and carriers alike want to know that you possess comprehensive knowledge of both your local insurance market and the forces influencing the wider industry. Offer analysis of your agency’s target market, including the demographics of your potential clients.

Then, provide a thorough analysis of the insurance industry’s current challenges and evolving exposures, with emphasis on how those trends affect the types of clients you serve. (This section doesn’t need to be exhaustive – again, don’t pad it – but it should reflect your macro perspective on the P&C market as well as how market forces will factor into your pricing and risk selection.)

Marketing strategy

How do you market your agency to prospects? Do you utilize digital marketing, social media, or create content that will resonate with potential customers? Community engagement is key in endearing your business to local prospects, as are networking events.

Detail your marketing strategy, and explain which types of outreach you’ve found most effective.

Note: As an agency owner it’s especially important to be flexible with your plans in this area, as certain approaches may prove less effective over time. When they do, you’ll need to pivot.

Organization and management

Effective leadership and a clear organizational chart will contribute greatly to your agency’s success. In this section, lay out your agency’s organizational structure – the hierarchy of your leaders. Include profiles of key team members, highlighting their various expertise.

Financial plan

Here’s where you begin to get more detailed on dollars and cents. Offer your realistic financial projections for your agency, taking into account expenses, revenue, and projected profitability.

Your projections should include a breakdown of any and all financial forecasts and possible variables taken into consideration. Contingency plans to address potential financial challenges should likewise be included.

Agency funding

Your agency’s financial needs are assessed in detail here. Apply your knowledge of what you want your agency to achieve, versus what it will cost. This includes (but is not limited to) rent, payroll, utilities, phone service, and business insurance.

Include the purpose behind each expenditure, and demonstrate how funding for your firm will be used to cultivate growth.

By the time this section is complete, you’ll have an informed understanding of exactly what it will cost to fund your organization – and how much you may need to borrow to manifest your vision. Provide an outline of potential sources of funding, including personal investments, loans, or investors.

What is the Best Business Structure for an Insurance Agency?

There are several business structures you can consider for your agency, each with various benefits. These include:

• Sole proprietorship
• Partnership
• Corporation

There are various legal, financial, and operational factors to consider in selecting the structure that’s best for you, which we’ll explore in greater detail in a future blog.

How your insurance agency business plan will evolve

As your agency evolves over time, so too will your firm’s business plan. It’s best to revisit and refine your overall plan at least every seven to 12 months, in order to chart your progress and adopt new strategies that will help to continuously drive revenue.

The path to agency success is long and at times extremely difficult, but thoughtful planning will aid your firm’s execution and growth for years to come.

About Renaissance

Powered by a differentiated suite of technology products and services, Renaissance drives organic, profitable revenue growth for your insurance agency.

Keep Reading

How insurance agencies can benchmark their success, how independent insurance agents can raise the bar on customer service, 4 strategies for growing your independent insurance agency.

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NON-DISCLOSURE TERMS AND CONDITIONS

These Non-Disclosure Terms and Conditions (“ Agreement ”) govern the provision of information by Renaissance Alliance Insurance Services, LLC (“ Renaissance ”) to a prospective agency member (“ Recipient ”). Renaissance and Recipient Renaissance and Recipient are hereinafter referred to together as the “ Parties ,” and each may be referred to separately as a “ Party .”

The Parties acknowledge that Renaissance may disclose to Recipient certain of Renaissance’s confidential, sensitive and/or proprietary information including, but not limited to, business, financial or technical information, in connection with the potential establishment and/or conduct of a business relationship or transaction between the Parties (the “ Transaction ”). In connection therewith, for good and valuable consideration, the receipt and sufficiency of which consideration are hereby acknowledged by Recipient, and as a condition of the provision of Confidential Information (as defined below) to Recipient, Recipient hereby agrees as follows:

• Confidential Information. “ Confidential Information ” means any and all information provided by Renaissance to Recipient in any form, and at any time (including prior to or following the execution of this Agreement), including but not limited to any such information that (a) is related to Renaissance’s business, finances, financial information, pricing, business plans, profitability, projections, business or financial opportunities, investment strategies, other strategies, data, products, services, concepts, contacts, personnel, customers, vendors, prospects, intentions, formulas, methods, processes, practices, models, tools, computer programs, software, discoveries, inventions, know-how, negative know-how, business relationships, agreements (including this Agreement), intellectual property, trade secrets (whether or not patentable or copyrightable), trade secrets, or other confidential or proprietary information, (b) contains or is related to any communications, negotiations or proposals regarding the Transaction; (c) Recipient has either been informed, or reasonably should know, is confidential in nature; or (d) consists of or contains names, addresses or other information of any description relating to any of Renaissance’ member agencies or any of such member agencies’ customers or clients. Confidential Information shall also include any analyses, compilations, studies or other documents or materials prepared by Recipient or by any of its Representatives, that contain, rely upon, are derivative of or otherwise reflect any Confidential Information as described in the preceding sentence. The foregoing notwithstanding, Confidential Information shall not include any information which, at the time it is provided to Recipient; (i) is already known to Recipient, (ii) is then or later becomes available to the general public without violation of any requirement of confidentiality.
• Providing of Confidential Information. Renaissance may provide to Recipient any Confidential Information, in such manner and at such times as Renaissance may determine, to assist Recipient in evaluating, negotiating and carrying out the Transaction, but shall have no obligation to provide any, or any particular, Confidential Information to Recipient. Renaissance makes no, and disclaims any, representations or warranties regarding any Confidential Information it may provide, except as may be provided in any definitive documentation relating to a Transaction.
• Non-Use and Non-Disclosure; Representatives. Recipient agrees not to use any of Renaissance’s Confidential Information for any purpose other than for or in connection with the evaluation, negotiation, entering into or carrying out of a Transaction. Recipient agrees not to disclose any of Renaissance’s Confidential Information to any third party other than Recipient’s directors, officers, employees, affiliates, counsel, consultants, advisers, representatives and agents (collectively, “ Representatives ”) who have a reasonable need for the same in connection with the uses thereof permitted under this Agreement. Any such Representatives who are provided with any Confidential Information shall be instructed to maintain the same in confidence, and not to make any use or disclosure of the same other than as permitted under this Agreement. Recipient shall be responsible for any breach of this Agreement by any of its Representatives, to the same extent as though Recipient had committed such breach personally. Recipient agrees to use the same level of care in protecting the Confidential Information from unauthorized disclosure as it uses to protect its own confidential or proprietary information, and in any case will use no less than a commercially reasonable level of care in protecting all Confidential Information from unauthorized disclosure. The foregoing notwithstanding, Recipient shall be permitted to disclose so much of the Confidential Information as has been authorized for release by Renaissance in writing, to the persons and upon the conditions so authorized by Renaissance, in connection with the carrying out of the Transaction. Recipient shall not circumvent or seek to circumvent Renaissance’s negotiations with any third party, either by entering into discussions directly with such third party otherwise than on behalf of Renaissance, or otherwise. For purposes of this Section, each Party shall act in good faith and deal fairly with the other Party.
• No License; Return of Confidential Information. Recipient will not acquire any license or other rights whatsoever with respect to any of the Confidential Information by virtue of its disclosure to Recipient pursuant to this Agreement, or by virtue of any use thereof permitted hereunder. Recipient agrees to destroy or to return all Confidential Information to Renaissance, including both originals and all copies thereof (other than copies created as part of the routine backup of Recipient’s servers, or copies retained pursuant to a requirement of a governmental or regulatory authority, all of which retained copies shall be held confidential for so long as such materials are so retained), and to confirm the completion of such return or destruction to Renaissance in writing, promptly upon demand by Renaissance within the term of this Agreement. The term of this Agreement shall be for a period of five (5) years, commencing on the Effective Date set forth above. Either Party may terminate this Agreement at any time, upon written notice to the other Party, provided that the obligations of Recipient hereunder shall nevertheless survive for the period above stated, with respect to all Confidential Information provided prior to such termination.
• Orders Requiring Production. In the event Recipient receives a court subpoena, request for production of documents, court order or other requirement of a governmental agency to disclose any Confidential Information (a “ Disclosure Requirement ”), Recipient shall (unless prohibited by law) give prompt written notice to Renaissance thereof so that Renaissance may seek to challenge or limit the Disclosure Requirement. Recipient agrees to cooperate reasonably in any effort of Renaissance to limit or prevent any required disclosure of Confidential Information, provided that Recipient shall: (i) not be required to incur any expense in connection with such cooperation, and (ii) not be required to disobey any Disclosure Requirement. Recipient shall not be deemed in violation of this Agreement if it complies with any such Disclosure Requirement either after having provided Renaissance with notice thereof and a reasonable opportunity to contest the same, or if such notice is not permitted. Recipient agrees to (a) exercise reasonable efforts to disclose only the minimum amount of Confidential Information that Recipient is compelled to disclose, in the opinion of its legal counsel, and (b) request that confidential treatment (if legally permissible) will be accorded to the Confidential Information being disclosed.
• Injunctive Relief. Recipient acknowledges that the Confidential Information is confidential, and that disclosure or use of said information in violation of the terms of this Agreement would result in substantial and irreparable harm to Renaissance, the actual dollar amount of which damage would be impossible to determine. Accordingly, Recipient agrees that, in addition to any other remedies that may be available, in law, in equity or otherwise, Renaissance shall be entitled to seek injunctive relief against the actual or threatened breach of this Agreement or the continuation of any such breach by Recipient, without the necessity of proving actual damages and without posting bond. This provision shall not limit the right of Renaissance to seek actual damages or any other legal or equitable remedy for any breach hereof.
• Miscellaneous. This Agreement shall be construed in accordance with and governed by the laws of the State of Illinois, without regard to its conflicts of laws principles. Any action or proceeding against either Party relating in any way to this Agreement shall be brought and enforced only in the Federal (to the extent appropriate jurisdiction exists) and State courts located in Cook County in the State of Illinois, and the Parties irrevocably submit to the jurisdiction of such courts in respect of any such action or proceeding, and irrevocably waive any objection to venue in such courts, including but not limited to any objection that such venue is inconvenient. This Agreement embodies the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings, oral or written. No amendment to this Agreement and no waiver of any provision hereunder shall be effective unless it is in writing and signed by an authorized officer of the Party against whom such amendment or waiver is asserted. No invalidity or unenforceability of any provision of this Agreement shall affect the validity or enforceability of the remaining portions hereof. This Agreement shall be binding upon, and shall inure to the benefit of, each of the Parties and their respective successors and assigns. There are no intended third-party beneficiaries of this Agreement. This Agreement does not in any way bind either Party to enter into or continue any type of business relationship with the other. Nothing in this Agreement shall prevent Renaissance from at any time disclosing any of its Confidential Information to others or negotiating with others for any purpose whatsoever. Nothing contained in this Agreement shall be construed to constitute the Parties as partners, joint venturers, co-owners or otherwise as participants in a joint or common undertaking. Recipient’s indication of assent to this Agreement via electronic means shall be equally binding and effective as an original signature hereon, and shall be deemed duly and effectively delivered if so transmitted or provided.

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Insurance Agent Business Plan

If you have an aptitude for convincing people and can identify what insurance works for different customers, then an insurance agency business might work for you.

An insurance agency is not only profitable, but also requires lesser skills to get started. But at the same time, it attracts a lot of competition. Moreover, it is also a work that involves a lot of responsibility for managing insurance portfolios properly.

You can do all of the above and more smoothly, with the help of an insurance agent business plan .

If you are planning to be an insurance agent, the first thing you will need is a business plan. Use our sample insurance agent business plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan , spend as much time as you can reading through some samples of insurance & finance-related business .

Industry Overview

The insurance industry stood at a massive value of 1.28 trillion dollars in 2020 and isn’t about to slow down any time soon.

Life and home insurance make up the majority of the market share. The growth of the industry can be attributed to the increase in buying houses and getting the same insured.

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Things to Consider Before Writing an Insurance Agent business plan

Choose your legal structure.

Different legal structures come with different pros and cons. Also, each legal structure solves different purposes for a business. From the taxes, you’ll pay to the liability on your assets, the legal structure of your business decides everything.

Hence, you should go through all of your options and pick the one that fits your business needs the best.

Build brand identity and image

Having a brand identity that makes you memorable to your customers is important. Constant marketing and branding efforts can help you achieve that.

Moreover, your brand image should give your customers a sense of reliability. It is of utmost importance to your business.

Get your licenses and permits

Figuring out what licenses and permits you need as per the laws of your country and state is very important before getting started in the insurance industry.

But at the same time, keeping track of all the legal requirements can be difficult. Hence, it is a good practice to have a checklist at hand before you get started.

Look into your funding requirements

The cost of setting up an insurance company depends upon the location and size of your business. Hence, look into what would be your financial requirements to set up your firm and if you’ll need any funds or not.

There are several funding options like angel investors, bank loans, etc. You can pick the option that works best for you.

Chalking out Your Business Plan

Reading sample business plans will give you a good idea of your aim. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample insurance agent business plan for you to get a good idea about how a perfect insurance agent business plan should look like and what details you will need to include in your stunning business plan.

Insurance Agent Business Plan Outline

This is the standard insurance agent business plan outline which will cover all important sections that you should include in your business plan.

• Keys to Success
• 3 Year profit forecast
• Startup Cost
• Funding Required
• Company Ownership
• Competition and Buying Patterns
• Market Analysis
• Target Market Segment Strategy
• Competitive Edge
• Marketing Strategy
• Sales Forecast
• Sales Yearly
• Personnel Plan
• Startup Funding
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample insurance agent business plan into your business plan and modify the required information and download your insurance agent business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample insurance agent business plan

Need help writing your business plan from scratch? Here you go;  download our free insurance agent business plan pdf  to start.

It’s a modern business plan template specifically designed for your insurance agent business. Use the example business plan as a guide for writing your own.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Insurance Agency Business Plan Guide + Free Example

July 6, 2023

Adam Hoeksema

The insurance agency industry offers substantial potential for growth and success. While some may perceive managing an insurance agency as a simple task, involving only policy sales and customer interactions, it actually requires careful planning and precise execution to thrive. Therefore, having a well-structured business plan is crucial for achieving success in this industry.

Our primary expertise lies in creating insurance agency financial projections . However, we understand that some of our clients seek comprehensive business plans. That's why we've taken the initiative to delve into this topic and cover the following aspects in our comprehensive insurance agency business plan guide and sample plan: 

Why write a business plan for an insurance agency?

What to include in an insurance agency business plan, insurance agency business plan outline, what type of insurance agency to start, how to analyze the competition for an insurance agency, how to create financial projections for an insurance agency, example insurance agency business plan, insurance agency business plan faqs.

Creating a well-structured business plan is crucial for insurance agency owners seeking financial support from investors, banks, or financial institutions. This plan should encompass a comprehensive evaluation of the insurance market, a clear and strategic approach, and a thoughtful assessment of potential risks and rewards. By showcasing your in-depth understanding of the insurance industry, your growth strategies, and your capability to navigate challenges, a robust business plan increases the likelihood of attracting the necessary funding for your insurance agency venture.

An insurance agency business plan should present persuasive reasons why clients will choose your agency's services, demonstrate why you or your team are the ideal operators for the insurance agency, and provide a robust financial projection to assure potential investors and lenders of the investment's viability. Below is a comprehensive outline of our complimentary insurance agency business plan template.

We suggest the following sections for your Insurance Agency business plan:

Executive Summary

Company Description

Market Analysis

Product and Service Offerings

Marketing Plan & Customer Acquisition

Operating Plan

Financial Plan

Choosing the right type of insurance agency will depend on your interests, expertise, and the market demand in your area. Here are some common types of insurance agencies you could consider starting:

General Insurance Agency:

A general insurance agency deals with a wide range of insurance products, including auto insurance, home insurance, business insurance, liability insurance, and more. This type of agency offers a diverse portfolio of insurance products to cater to a broad customer base.

Specialized Insurance Agency:

Instead of offering a wide range of insurance products, you can focus on a specific niche or industry. For example, you could start a health insurance agency, life insurance agency, or a commercial property insurance agency. Specializing can allow you to become an expert in a particular area and build strong relationships with clients in that niche.

Independent Insurance Agency:

Independent agencies work with multiple insurance carriers, giving them the flexibility to offer a variety of insurance products from different companies. This model allows you to compare coverage options and find the best policies for your clients' needs.

Captive Insurance Agency:

A captive agency represents a single insurance company and sells only that company's policies. While you have less flexibility in terms of product offerings, captive agencies often benefit from the support and training provided by the parent insurance company.

Online Insurance Agency:

With the rise of digital technology, you could consider starting an online insurance agency. This model allows you to reach a broader audience and provide insurance services through a website or app. It can be a cost-effective way to start and operate an agency.

Insurance Brokerage Firm:

Instead of focusing on selling insurance policies directly to clients, you could start an insurance brokerage firm. As a broker, you would act as an intermediary between clients and insurance companies, helping clients find the best coverage at competitive rates.

Before deciding on the type of insurance agency to start, conduct thorough market research to assess the demand for different types of insurance in your area. Also, consider your own skills, knowledge, and passion for specific insurance sectors. Having a clear understanding of your target market and your own expertise will guide you in making the right decision for your insurance agency. Additionally, make sure to comply with all legal and licensing requirements for insurance agencies in your region.

When it comes to analyzing the competition in the insurance agency industry, there are a few valuable tools you can use, with one of the most useful being Ahrefs.

Ahrefs is a powerful SEO tool that enables you to research and dissect your competitor insurance agencies' online presence. By inputting a competitor's website into Ahrefs, you can gain valuable insights into their organic traffic and the specific keywords responsible for driving that traffic.  For example, in Indianapolis we can see that Carson Insurance Agency is receiving roughly 100 monthly visitors from organic traffic.  

The tool provides valuable data on your competitor's organic traffic and highlights the keywords that are leading visitors to their website.

By understanding the keywords and SEO strategies employed by your insurance agency competitors, you can tailor your content and marketing strategies to effectively compete in the same areas or identify niche segments that may be underserved. This knowledge can help enhance your insurance agency's online visibility, attract more customers through search engines, and position your business for success in the competitive insurance industry.

SWOT Analysis: While not a digital tool SWOT analysis can be incredibly helpful in analyzing competition. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. By comparing these aspects between your agency and your competitors, you can identify areas where you might have a competitive edge or areas where you need to improve. Many business websites and educational institutions offer free SWOT analysis templates and guides that can be easily adapted for an insurance agency.

In the insurance agency industry, financial projections are influenced by distinct factors such as client acquisition rates, policy pricing, seasonal demand, and operational expenses. Using an insurance agency financial projection template can simplify the process and boost your confidence. However, accurate financial projections serve a greater purpose than just showcasing revenue potential; they paint a clear picture of the path to profitability and the achievement of your insurance business goals. By considering these crucial elements, you can create a solid financial plan that guides your agency towards success and ensures the realization of your objectives.

To create precise projections, follow these key steps:

Estimate startup costs for your insurance agency, including office space, technology infrastructure, licensing and certifications, marketing, and initial staff training.

Forecast revenue based on projected client acquisition rates, average policy premiums, and potential growth in your customer base.

Project ongoing operational costs , such as staff salaries, rent, technology maintenance, marketing expenses, and administrative overhead.

Estimate costs related to providing insurance policies and services, such as commission payouts to agents, underwriting expenses, and claims management.

Calculate the capital needed to launch and sustain your insurance agency, covering initial expenses and providing working capital for continued growth.

While financial projections are essential for your insurance agency's business plan, seek guidance from experienced professionals in the insurance industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about insurance market trends and evolving customer preferences to ensure your financial plan aligns with your goals and positions your insurance agency for long-term success.

Explore our comprehensive Insurance Agency Business Plan below. For your convenience, a downloadable Google Doc version of this insurance agency business plan template is available, allowing you to personalize and tailor it to your specific needs. Additionally, a helpful video walkthrough is provided, guiding you through the process of customizing the business plan to perfectly align with your unique insurance agency concept.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

Briefly introduce the company's background, products or services, and target market.

      -  Example: SecureRide Auto Insurance Agency is a leading provider of auto insurance solutions in Atlanta, Georgia. We specialize in offering comprehensive coverage options tailored to meet the unique needs of drivers in the area.

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example: Establish SecureRide as the go-to auto insurance agency in Atlanta, capturing a significant market share and achieving a 40% increase in policyholders within the first year. 

        - Example: Long-term: Expand our presence in Georgia and neighboring states while maintaining a high level of customer satisfaction.

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example: At SecureRide, our mission is to provide reliable and affordable auto insurance coverage to drivers in Atlanta. We are committed to ensuring our customers have the peace of mind they deserve on the road by delivering exceptional service and tailored insurance solutions.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example: Delivering competitive pricing and flexible coverage options tailored to our customer's needs. We prioritize superior customer service, ensuring responsiveness, transparency, and personalized support

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: SecureRide Auto Insurance Agency was established by Mark and Emily Roberts, who have a combined experience of over 20 years in the insurance industry. Mark brings expertise in risk assessment and underwriting, while Emily has a strong background in sales and customer relations.

   2.2. Legal Structure

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: SecureRide Auto Insurance Agency operates as a limited liability corporation (LLC)

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: SecureRide sets itself apart by offering customizable auto insurance coverage tailored to each client's specific needs. Our advanced technology allows for quick and accurate quotes, efficient claims processing, and a seamless customer experience.

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: Focuses on serving the residents of Atlanta, Georgia, and its surrounding areas. Our primary target market includes drivers of all ages and backgrounds who seek reliable, affordable, and comprehensive auto insurance coverage.

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The auto insurance industry in Atlanta, Georgia, is a thriving and competitive market, driven by the high number of vehicles on the road and the state's insurance requirements. With a growing population and an increasing emphasis on vehicle safety, the demand for reliable auto insurance coverage is expected to continue rising.

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: Atlanta Auto Insurance Company: A national insurance company with a branch in Atlanta, providing a wide range of auto insurance policies. 

        - Example: Indirect competitors:  EasyInsure Online: An online insurance platform that allows customers to compare and purchase auto insurance policies from various providers. 

3.3. Target Market Analysis

Explores the company's target customers, their demographics, preferences, and pain points.

        - Example: SecureRide’s target market in Atlanta, Georgia consists of young professionals, families and homeowners, commuters and business professionals, high-value vehicle owners, and retirees and seniors. 

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: SecureRide can seize market opportunities by leveraging digital marketing strategies to reach a broader audience, offering innovative coverage options such as usage-based insurance, and establishing partnerships with local car dealerships and auto repair shops. 

• Example 1: Conduct a survey among Atlanta residents to assess their knowledge of auto insurance providers and their satisfaction with existing options. This will help identify gaps in the market and potential opportunities for SecureRide. (e.g., 65% of surveyed residents are unaware of any specialized auto insurance agencies in Atlanta, indicating a potential market niche)
• Example 2: Analyze the market share and customer satisfaction ratings of established auto insurance companies in Atlanta to understand the competitive landscape and areas for differentiation. (e.g., Company X holds a 30% market share but receives consistently low customer ratings for claims handling, suggesting an opportunity for SecureRide to excel in customer service)
• Example 3: Keyword search volume to see growth in demand or specific types of boutique insurance needs

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: SecureRide offers a comprehensive range of auto insurance coverage options, including liability insurance, collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, and additional specialized coverage for high-value vehicles or specific driver profiles.

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: SecureRide adopts a competitive pricing strategy based on market analysis, offering affordable premiums and flexible payment options to ensure accessibility and value for customers.

4.3. Sales Strategy

  Explains how the company plans to generate sales and build

customer relationships.

        - Example: SecureRide will leverage a multi-channel sales approach, utilizing a combination of online platforms, direct sales efforts, and strategic partnerships with car dealerships and automotive service providers.

 Describes the methods through which the company will deliver its products or services to customers.

        - Example: SecureRide primarily operates through its physical office location in Atlanta, Georgia. Additionally, the company will have an online presence through a user-friendly website and mobile app allowing customers to conveniently access information, request quotes, and manage their policies.

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example: SecureRide will implement targeted digital advertising campaigns, including search engine marketing, social media advertising, and online display ads, to increase brand visibility and attract potential customers.

• Example 1: Develop partnerships with local car dealerships and auto repair shops to offer exclusive discounts on insurance policies to their customers. This can generate initial traction and referrals. (e.g., SecureRide establishes partnerships with three prominent car dealerships, resulting in 50 policy sales within the first month)
• Example 2: Launch a targeted digital marketing campaign that emphasizes SecureRide's competitive rates, personalized customer service, and quick claims processing. This can attract potential customers seeking a more customer-centric auto insurance experience. (e.g., The campaign generates 500 leads and converts 20% of them into policyholders within the first quarter)
• Example 3: Build a social following or Youtube channel that simplifies auto insurance for everyday people that can serve as a possible customer base when the business launches.

5. Operations and Management

5.1. facility location and layout.

 Specify the agency’s physical business location and refers to the internal arrangement and organization of the space.

        - Example: SecureRide is strategically located in a prime area of Atlanta, Georgia, ensuring easy accessibility for clients and proximity to major transportation routes. The facility is designed with a customer-centric approach, providing a welcoming reception area, private consultation rooms, and a well-organized layout that promotes efficient workflow and privacy for sensitive discussions

5.2. Staffing and Expertise: 

Ensures the agency can effectively serve its clients and provide comprehensive insurance solutions.

        - Example: SecureRide has a team of experienced insurance professionals who possess in-depth knowledge of the auto insurance industry, including underwriting, claims processing, risk assessment, and customer service. 

5.3. Customer Service:

 Involves the process of providing support to policyholders and potential customers throughout their insurance journey.

        - Example: Customer satisfaction and retention are key objectives for SecureRide. The agency strives to deliver personalized assistance to clients, addressing their insurance needs, offering guidance in policy selection, and providing prompt and efficient claims assistance. 

• Example: SecureRide's founding team brings a wealth of industry experience, ensuring a deep understanding of the auto insurance landscape and customer needs. For example, Mark Roberts, the CEO, has over 15 years of experience in the insurance industry, specializing in auto insurance. Sarah Roberts, the COO, has a background in risk management and claims handling, ensuring efficient operations and superior customer service.

5.4. Technology and Systems:

Refers to the utilization of advanced technological tools, software systems, and digital platforms .

        - Example: SecureRide leverages advanced insurance management systems and technology solutions to streamline operations, enhance efficiency, and improve customer experience. These systems enable seamless policy management, online quoting and applications, secure data storage, claims processing, and effective communication with clients. 

All of the unique Insurance Agency projections you see here were generated using ProjectionHub’s Insurance Agency Facility Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

  Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to breakdown how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of SecureRide. We estimate needing around $190,000 to cover our startup costs as well as cover losses until we become cash flow positive. $90,000 will come from personal investment & a small equity investment from another partner, and then we are seeking a $100,000 business loan.

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  SecureRide projects $359,000 in revenue in the first year. The company anticipates steady growth in revenue over the initial five-year period.

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: SecureRide's expenses include property lease, accounting, advertising, commissions, utilities, and software costs.

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: SecureRide’s expects to achieve profitability within the first few years of operation.

 Outlines the company's projected cash inflows and outflows.

        - Example: SecureRide cash flow projections account for fluctuations & onboarding additional agents.

  Determines the point at which the company's revenue equals its expenses.

        - Example: SecureRide anticipates reaching its break-even point in year 3 but the industry is very low margin.

Watch how to create financial projections for your Insurance Agency

Key Point  4 

• Example 1: Benchmark SecureRide's projected premium rates against industry averages and adjust accordingly to remain competitive while ensuring profitability. (e.g., SecureRide's projected average premium rate aligns with the industry average, indicating a realistic pricing strategy)
• Example 2: Conduct a thorough analysis of loss ratios and claim settlement ratios in the auto insurance industry to estimate SecureRide's potential expenses for claims payouts. (e.g., SecureRide projects a 70% claim settlement ratio, based on industry benchmarks, to ensure adequate reserves for potential claims)
• Example 3: Evaluate potential risks and their financial implications, such as increased competition, supply chain disruptions, or changing market conditions. (e.g., A 5% increase in the price of coffee beans could lead to a 2% decrease in CozyCorner's net profit margin)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

• Example: SecureRide's founders demonstrate their commitment to the business by investing a significant portion of their personal funds into the company's initial capital. They are also willing to personally guarantee loans and secure necessary insurance licenses and certifications, showcasing their dedication and belief in SecureRide's success.

How do I start an insurance agency?

To start an insurance agency, you'll need to obtain the necessary licenses and certifications, develop relationships with insurance carriers, determine your target market and insurance specialties, establish an office or online presence, create a marketing strategy, and hire and train staff.

How can I attract clients to my insurance agency?

To attract clients, develop a strong online presence and professional website, network with other professionals and businesses in related industries, offer valuable content through blog posts or educational resources, utilize social media platforms, and provide exceptional customer service.

What types of insurance should my agency offer?

The types of insurance your agency should offer may vary based on your target market and expertise. Consider offering common insurance lines such as auto, home, life, health, business, and specialty coverages based on the specific needs of your clients.

How can I stay updated with the latest insurance trends and regulations?

Stay updated with the latest insurance trends and regulations by joining industry associations, attending relevant conferences or seminars, participating in continuing education programs, subscribing to industry publications, and actively engaging with insurance carriers and professional networks.

How can I build trust and credibility as an insurance agency?

Build trust and credibility by providing transparent and reliable insurance information, maintaining strong relationships with reputable insurance carriers, offering personalized coverage recommendations, being responsive to client needs and inquiries, and being actively involved in the community you serve.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

Other Stories to Check out

How to know if your financial projections are realistic.

It is important for financial projections for a small business or startup to be realistic or else an investor or lender may not take them seriously. More importantly, the founder may make a financial mistake without a reliable plan.

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In this article we are going to walk through how to finance a small business acquisition and answer some key questions related to financing options.

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Agency Performance Partners

What Goes Into An Insurance Agency Business Plan

Posted on November 10, 2023 by Kelly Donahue Piro

Looking to understand what goes into an insurance agency business plan?

🎙️ New Podcast Episode Alert! 🎙️

📋 Episode Title: “What Goes Into An Insurance Agency Business Plan?”

Attention all forward-thinking insurance agency owners! 🚀 If you want to take your insurance business to new heights and achieve unprecedented success, this episode is tailor-made for you! Tune in as we delve into the intricacies of crafting a winning insurance agency business plan that will set the course for your agency’s growth and profitability.

In this enlightening episode, we bring you invaluable insights and expert tips from seasoned industry professionals who have navigated the ins and outs of the insurance landscape. Whether you’re an established agency owner looking to refine your strategy or an aspiring entrepreneur aiming to launch your own insurance venture, this episode is your ultimate guide to creating a roadmap for triumph in the insurance industry.

📝 What to Expect: – Understanding the Significance of a Solid Business Plan: Discover why a well-structured business plan is the bedrock of a thriving insurance agency, acting as a compass to steer your business toward prosperity.

📈 Elements of a Winning Business Plan: Learn about the key components that make up an effective insurance agency business plan, from market analysis and target demographics to competitive analysis and growth projections.

💼 Navigating Through Challenges: Gain valuable insights on anticipating and overcoming challenges that insurance agency owners commonly encounter, ensuring you stay ahead in the game.

🔍 Unveiling Opportunities: Explore untapped opportunities within the insurance sector that can give your agency a competitive edge and propel it to the forefront of the industry.

Whether you’re a newcomer or a seasoned player in the insurance arena, having a well-thought-out business plan is paramount to realizing your agency’s full potential. So, hit that subscribe button and join us for this eye-opening episode. Arm yourself with the knowledge and tools you need to build a flourishing insurance agency that stands the test of time!

🔔 Don’t forget to subscribe and hit the notification bell to stay updated on our latest episodes! Your success starts here! 🌟

🔔Check out the blog associated with this video: Insurance Agency Business Plan: How to Get Started

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Types of Business Insurance

How to choose the right business insurance plan, how to get business insurance.

• Frequently Asked Questions

The Bottom Line

• Business Insurance

Types of Business Insurance Plans: How to Decide Which Is Right for You

Insurance can help you protect your business from a variety of risks. Some of the most common types of business insurance plans include:

• General liability insurance
• Commercial property insurance
• Business income insurance
• Professional liability insurance
• Workers’ compensation insurance
• Employment practices liability insurance
• Product liability insurance
• Commercial auto insurance
• Commercial umbrella insurance
• Cybersecurity insurance

Understanding how each type of business insurance (also referred to as commercial insurance ) works can help you determine which coverage options you may need.

Key Takeaways

• Business insurance is designed to protect business owners from financial losses associated with a range of covered events.
• Different types include general liability, commercial property, and workers’ compensation insurance.
• Like other types of insurance, business insurance can require you to pay premiums as well as deductibles.
• There are several different varieties of business insurance that you could use to protect your business.
• Purchasing a package policy that includes several different types of coverage is one way to save money on business insurance.

The figures listed above represent the average monthly cost of various small business insurance products, according to Insureon, an online marketplace for small business insurance. The actual cost of insuring a small business may be lower or higher, depending on your unique situation and needs.

1. General Liability Insurance

General liability insurance provides liability coverage if your business is sued. This type of coverage is fairly comprehensive and can protect you against claims stemming from a number of different circumstances.

What risks does it protect against? General liability insurance protects you against lawsuits filed by people outside of your company, such as suppliers or customers.

What costs does it cover? This type of policy can cover the costs of a lawsuit, including settlements paid to claimants and medical expenses related to personal injury claims.

Forgoing general liability insurance could leave your business open to significant losses if you’re sued.

2. Commercial Property Insurance

Commercial property insurance protects your business property against a wide variety of losses. For example, if your property is damaged as a result of a natural disaster or civil unrest, your policy could pay to repair or replace affected assets. A civil authority provision addresses business closures as a result of government actions after a disaster or life-threatening event.

What risks does it protect against? Commercial property insurance covers damage resulting from fire, smoke, wind, hail, civil disobedience, and vandalism .

3. Business Income Insurance

Business income insurance is a type of coverage designed to supplement commercial property insurance. This kind of policy protects you if your business income is interrupted due to property damage .

What risks does it protect against? Business income insurance protects you against missing income associated with the slowdown or suspension of business resulting from damage to property.

What costs does it cover? This type of policy helps to replace lost income from operations.

4. Professional Liability Insurance

Professional liability insurance is liability coverage for losses resulting from perceived mistakes that you made in doing your job. You may purchase this type of insurance to supplement any events not covered by a general liability policy.

What risks does it protect against? Professional liability insurance can protect against lawsuits that may arise as a result of negligence, malpractice , or errors.

What costs does it cover? This type of policy can pay out benefits to cover lawsuit settlements and legal fees.

5. Workers’ Compensation Insurance

Workers’ compensation insurance is a type of liability coverage that protects your business if one of your employees gets injured on the job. State law can determine what types of businesses are required to have workers’ compensation coverage.

What risks does it protect against? Workers’ compensation insurance is designed to cover on-the-job injuries.

What costs does it cover? This type of policy can pay medical bills for injured employees and provide them with income replacement until they’re able to return to work.

6. Employment Practices Liability Insurance

Employment practices liability insurance is intended to protect your business from lawsuits stemming from claims relating to unlawful hiring or employment practices. If you’re sued, your policy could pay legal fees or settlements to claimants.

What risks does it protect against? Employment practices liability insurance can cover a range of situations, including lawsuits filed in connection with wrongful termination , discrimination, sexual harassment, and retaliation.

What costs does it cover? This type of policy can cover legal fees and settlements.

7. Product Liability Insurance

Product liability insurance protects businesses that manufacture or produce tangible products. Specifically, this coverage insures against claims for defective products that cause injury or bodily harm.

What risks does it protect against? Product liability insurance protects your business when someone sues you over a defective product that has caused injury, bodily harm, or death.

8. Commercial Auto Insurance

Commercial auto insurance works similarly to personal car insurance, but it’s designed to protect business vehicles. The type of coverage you need and the coverage limits required can vary from state to state.

What risks does it protect against? Commercial auto insurance protects you against damage related to accidents, vandalism, or theft of company vehicles.

What costs does it cover? This type of policy can cover repair costs, medical bills, legal fees, and settlements.

9. Commercial Umbrella Insurance

Commercial umbrella insurance is designed to cover risks not covered by other types of business insurance. For example, if you’re sued and you’ve maxed out the coverage limits of your general liability policy, an umbrella policy could help to fill the gaps.

What risks does it protect against? Commercial umbrella insurance can help you to minimize financial losses stemming from lawsuit settlements that exceed other business insurance coverage limits. 

What costs does it cover? This type of policy covers legal fees and settlements. 

10. Cyber Liability Insurance

Cyber liability insurance, also known as cybersecurity insurance, is designed to cover liability and property losses relating to the electronic transfer or sharing of data. This type of insurance is becoming increasingly important as more businesses are targeted by hackers and identity thieves online.

What risks does it protect against? Cybersecurity insurance can protect your business if any electronic or digital data is stolen or otherwise compromised.

What costs does it cover? This type of policy can provide liability protection related to lawsuits or cover the cost of upgrading or restoring cybersecurity systems.

Choosing the right business insurance is important because you don’t want to leave certain aspects of your business unprotected or overpay for coverage. Asking the right questions can help you better evaluate your needs.

Some of the most important questions to answer include:

• How many employees does the business have?
• Does the business have a physical location, or does it operate online only?
• Is there any business equipment that will need to be insured?
• What types of liability risks does the business face?
• Are there any vehicles that will need to be covered?
• What would happen if the business is interrupted by a natural disaster or another situation that’s beyond my control?
• Will I need insurance to cover special situations? For example, will it be necessary to buy key person insurance if I plan to sell or transfer the business to my heirs?

It’s also a good idea to weigh other factors when choosing insurance options. For example, you’ll likely need to think about how much liability coverage is appropriate or what type of premiums your business can afford to pay.

Also, consider what types of coverage may be required based on state law or the industry in which you operate. For example, individuals who work in financial services may be required to have professional liability insurance.

Joining a professional association in your field may allow you to unlock business insurance discounts.

If you’re ready to purchase business insurance, it helps to know what to expect. The process isn’t that different from buying other types of insurance. Here’s how to buy business insurance, step by step.

1. Assess Your Business Risk

The types of risk factors that affect your business can determine which types of business insurance you might need.

For example, say that you run an HVAC repair business. You have 10 employees, eight of whom drive work vans to customers’ homes or businesses. In that case, it would make sense to have a commercial automobile policy in place to insure those vehicles.

What if you have no employees and run your business solo? You may not need an auto policy if you drive your own vehicle for work and are covered by personal car insurance. And workers’ compensation coverage may not be necessary, either.

Looking at your business through the lens of risk can help you narrow the types of insurance coverage that may be appropriate and what you can do without.

2. Understand What’s Covered

By now, you should be familiar with the different types of business insurance. When putting together a policy, it’s helpful to know two things:

• What’s covered
• What’s excluded

You don’t want to be taken by surprise if you need to file a claim , only to find out that there’s a gap in your coverage. Reviewing the details of a business insurance policy with the help of an agent or broker can help you pinpoint any potential holes in your plan that could leave your business vulnerable.

3. Compare Quotes for Business Insurance

Many companies offer business insurance, and all of them price their policies differently. The main pricing considerations for business insurance include what you’ll pay in premiums and what you’ll shell out for a deductible , should you need to file a claim.

Providing as much information as possible about your business, including the number of employees, annual revenue, and value of business property, can help you get the most accurate insurance quotes.

Getting one quote is a good start, but it’s helpful to have other quotes to compare it with. At a minimum, it may be a good idea to get at least three quotes for business insurance so you have a better idea of the price range you’re working with.

If you’re buying multiple policies to cover different things, get quotes for each. You may want to take quotes for individual policies and compare them with pricing for bundled business insurance to see if bundling might save you any money.

When do I need business insurance?

Generally, you need to have business insurance if you’re concerned about the possibility of financial losses stemming from liability claims or other events. If you don’t have the proper insurance in place, you could take a sizable financial hit if you’re sued for damages. Business insurance may also be necessary if it’s mandated by law in the state where you operate.

Should I buy stand-alone policies or a bundled business insurance package?

If you only need one or two types of business insurance, then it could make sense to choose stand-alone policies. On the other hand, if you’re looking for more comprehensive coverage, then you may benefit more from purchasing a business insurance package or bundle. Buying bundled insurance potentially could be more cost-effective if you’re able to get multiple policies at discounted rates.

What types of business insurance would I need if I work from home?

Working from home doesn’t negate the need to have business insurance. At a minimum, it may be advisable to have general liability insurance in place. You also may want to purchase insurance to cover any business property that you use while working from home if it’s essential to your business operations.

Business insurance can be invaluable if you find yourself in a worst-case scenario and need to file a claim. Taking time to compare the different types of business insurance can help you determine which policy or policies are best suited to your needs. Once you know what coverage you need, you can take the next step and compare quotes from the best small business insurance companies .

Insureon. “ Product Liability Insurance .”

North Carolina Department of Insurance. “ Types of Insurance for Your Business: General Liability .”

U.S. Small Business Administration. “ Get Business Insurance: Six Common Types of Business Insurance .”

IRMI (International Risk Management Institute). “ Business Income Coverage (BIC) .”

North Carolina Department of Insurance. “ Workers Compensation .”

IRMI (International Risk Management Institute). “ Employment Practices Liability Insurance (EPLI) .”

North Carolina Department of Insurance. “ Types of Insurance for Your Business: Automobile .”

North Carolina Department of Insurance. “ Types of Insurance for Your Business: Excess and Umbrella .”

North Carolina Department of Insurance. “ Emerging Coverages: Cyber Liability Insurance ,” select “What might a Cyber Liability Insurance Policy cover for a business?”

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Best Small-Business Insurance 2024: Compare Companies and Coverage

Rosalie Murphy

Assigning Editor | student loans, student loan repayment plans, and education financing

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

⏰ Estimated read time: 13 minutes

Best business insurance companies

• Chubb: Best online business owner’s policy
• Next: Best comprehensive online business insurance
• Progressive: Best commercial auto insurance
• Thimble: Best for short-term coverage
• The Hartford: Best for getting a quote online, then working with an agent
• Travelers: Best for a wide variety of coverages
• Nationwide: Best for additional business services, like retirement plans

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Simple online shopping experience that most businesses can likely complete in a few minutes.

BOP includes business interruption and extra expense coverage.

Received fewer commercial property insurance complaints to state regulators than expected for a company of its size.

If you have more than $2 million in annual revenue, you'll need to talk with an agent or shop elsewhere.

• General liability insurance.
• Business property insurance.
• Business interruption insurance.
• Professional liability insurance.
• Umbrella insurance.
• Workers’ comp. 
• Cyber insurance.

Next Insurance

Up to 10% discount if you buy more than one policy.

Provides a digital certificate of insurance that you can share with anyone who needs it.

Received fewer commercial property and commercial auto insurance complaints to state regulators than expected for a company of its size.

Can’t file claims over the phone, only online.

• Commercial property insurance.
• Commercial auto insurance.
• Tools and equipment insurance.
• Liquor liability insurance.
• Product liability insurance.
• Contractor license bonds.

Progressive

Fewer than expected commercial auto insurance complaints filed with state regulators between 2018 and 2021 based on its market share — which is the largest by a wide margin, according to the Insurance Information Institute.

Specialized insurance products for truckers, including owner-operators, motor carriers and driver carriers.

Commercial auto insurance includes roadside assistance, including the cost of towing.

Other types of coverage are written by different insurance companies, which means you’ll have to work with those companies (not Progressive) to file claims.

You’ll have to contact a customer support agent to get a copy of your COI or add an additional insured.

• Workers’ comp.
• Employee health insurance.

Policies available one job, month or year at a time.

Policyholders can access their COI online and add an additional insured anytime. If you manage contractors, you can use Thimble’s Certificate Manager tool to ensure that everyone has compliant coverage.

Thimble’s unique “event insurance” policies include liquor liability and general liability coverage.

For customer support, you’ll have to submit a ticket online. There’s no phone-based assistance.

Thimble sells policies underwritten by other insurance companies, which means you’ll have to work with those companies (not Thimble) to file claims.

Commercial auto insurance isn’t available.

• Event insurance, which includes liquor liability coverage. 
• Business equipment insurance.

The Hartford

Available to tack onto a BOP: data breach, professional liability, workers’ comp, commercial auto and business income for off-premises utility service coverage.

You can file claims online or over the phone, then track your claims online.

Wide variety of coverage types available, all underwritten by The Hartford or its subsidiaries, so most customers won’t have to juggle multiple claims processes.

State regulators received more complaints about The Hartford’s general liability and commercial property coverage than would be expected for a company of its size.

You’ll have to request a copy of your COI online and wait for it to be emailed to you.

• Business income insurance.
• Commercial flood insurance.
• Data breach insurance.
• Employment practices liability insurance.
• Inland marine insurance.
• Management liability insurance.
• Surety bonds.

Offers many types of commercial insurance, including specialized coverage like key person insurance and surety bonds.

You can access your certificate of insurance and track your claims through an online portal.

Received fewer commercial property insurance complaints and far fewer commercial auto insurance complaints to state regulators than expected for a company of its size.

You can’t get a quote or purchase a policy online.

• General liability insurance. 
• Business income and extra expense coverage.
• Umbrella insurance. 
• Equipment breakdown insurance.
• Specialized coverage for industries like agriculture and energy.

Nationwide was the top-rated insurer for customer satisfaction in J.D. Power’s 2023 Small Commercial Insurance Study.

Wide variety of coverage types, including specialty products like surety bonds.

Nationwide also offers other business financial services, like employee retirement plans and a high-yield business savings account.

You can get a quote but not purchase a policy online.

• Commercial crime insurance.
• Cyber liability insurance.
• Builder’s risk insurance.
• Directors and officers insurance.

Other business insurance companies

• Allstate offers a business owner’s policy online and other types of insurance via agents. Read NerdWallet’s review of Allstate business insurance .
• biBERK sells several key types of business insurance online, but not all policies are available in all states. Read NerdWallet’s review of biBERK business insurance .
• Farmers operates in 36 states, offering basic coverages like general liability, commercial auto and umbrella insurance. Read NerdWallet’s review of Farmers business insurance .
• Geico sells its own commercial auto insurance and other types of insurance, like general and professional liability, via Hiscox. Read NerdWallet’s review of Geico business insurance .
• Hiscox sells general and professional liability insurance online and its professional liability policies cover work done all over the world. Read NerdWallet’s review of Hiscox business insurance .
• Huckleberry sells policies from other insurers online and suggests policies based on your industry. Read NerdWallet’s review of Huckleberry business insurance .
• Liberty Mutual sells virtually every type of business insurance, including policies for highly specialized industries. Read NerdWallet’s review of Liberty Mutual business insurance .
• Pie Insurance sells workers’ comp and can give you an online price estimate for a policy. Read NerdWallet’s review of Pie business insurance .
• State Farm agents can sell most types of business insurance, but online features are limited. Read NerdWallet’s review of State Farm business insurance .
• The Hartford offers online quotes for a wide variety of business insurance types, and the company received high marks for its financial strength. Read NerdWallet's review of The Hartford business insurance .
• Three targets small-business owners who want many types of insurance coverage in just one policy. Read NerdWallet’s review of Three business insurance .
• USAA works with military families. Read NerdWallet’s review of USAA business insurance .
• CoverWallet can help you purchase just about any type of insurance, then manage all your policies on one digital platform. Read NerdWallet’s review of CoverWallet .
• Simply Business is owned by Travelers, but lets you compare insurance policies from a variety of providers and buy them online. Read NerdWallet’s review of Simply Business .

What is business insurance?

• Business income insurance is usually included, but not always.
• Some insurers offer optional add-ons, like data breach coverage.

What business insurance do you need?

• Find out what coverage is required by law. Some business insurance, like workers’ compensation, is required by law. Check the workers’ compensation regulations in your state to make sure you’re in compliance. Be on the lookout for industry-specific regulations as well; for example, state law might require lawyers to carry legal malpractice insurance.
• Find out if your contracts require insurance. Landlords, lenders and contractors may require certain types of coverage before doing business with you.
• Talk to a professional. If you’re unsure about what kinds of business insurance you need, a licensed commercial insurance agent near you can help you evaluate your risks.
• Get an online quote. Lots of online business insurance providers ask questions during the quote process and suggest certain kinds of coverage as a result. For instance, if you say your business works in a professional services industry, they might recommend professional liability insurance. Getting a quote can highlight certain risks and help you understand how much insurance might cost.

How much does business insurance cost?

• What your company does.
• How many employees you have.
• Where you’re located.
• How public-facing your business is.
• Your claims history.

Reasses your business insurance needs regularly

What's the best fit for your business?

Answer a few questions and we'll match you with an insurance partner who can help you secure quotes.

Frequently Asked Questions

Methodology, business insurance ratings methodology, insurer complaints methodology.

Business Owner’s Policy (BOP): What It Covers, How to Get It

What Is Workers’ Compensation?

LLC Insurance: Best Options for Your Business in 2023

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Business Insurance: Get a Quote Today

Business insurance, also known as commercial insurance, can help protect your business from unexpected expenses related to property damage, legal liability, workers' compensation, and more. Whether you are just starting out and shopping for a small business insurance or just looking for better rates or coverage, having the right insurance policy can make all the difference when you really need it. Help protect your business against financial risk with a business insurance policy that's right for you.

View our Business Insurance Products

Business Insurance Calculator

Getting business insurance can be tricky, but GEICO is here to help. Just answer a few short questions about your business and its insurance needs so we can help find the best policy or policies for you. Or, if you already know what you need, browse our entire line of business insurance policies.

If you wish to speak with a Spanish speaking insurance specialist, contact us at (866) 509-9444 , select option 7.

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Select option 2 to start. Followed by option 2 for new quotes, option 5 for all other products, and 3 for Commercial policies.

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Question 1 of 6

We can help protect you whether you're a local handyman, a family restaurant, or an accountant.

Question 2 of 6

Question 3 of 6.

A few examples are Personal Trainers, Real Estate Agents, and IT Professionals.

Question 4 of 6

A few examples are Nurse Practitioners, Physician Assistants, and Physical Therapists.

Question 5 of 6

Such as: taking your tools and supplies to a job site, delivering goods, transporting clients, or other business use with your car

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Phew, that wasn't so bad..

Sometimes businesses need more coverage than others. Based on what we have here, it looks like you could use:

Oh no. Looks like we took a wrong turn somewhere.

Based on your responses you may be interested in learning more about the below products. If there's nothing listed you can also visit geico.com for more information on other products.

Business Owners Policy (BOP)

If you have business property like contents, inventory, or a storefront a BOP policy may be best for you.

In addition to 3rd party liability coverage in the event of a claim, this policy combines:

• Damage to business property
• Defense costs
• Income loss, and more

General Liability Insurance

No matter where you work, your businesses should have liability insurance. This policy provides protection for your business in the event of a 3rd party claim for property damage, bodily injury, and lawsuits costs for covered losses.

If you're looking for additional coverage for:

• Product inventory
• Business materials

A Business Owners Policy (BOP) could be a better fit.

Professional Liability Insurance

If your business provides professional advice you'll want to add this coverage. Professional Liability covers negligence claims that could arise from your services, even if you haven't made a mistake.

Commercial Auto Insurance

If your company owns vehicles that are used as a part of your job, you'll need Commercial Auto Insurance.

Workers' Compensation Insurance

If you have employees you're required by law in most states to carry this coverage for an employee's medical expenses, lost wages, and rehabilitation services that result from a workplace injury or illness.

Medical Malpractice Insurance

If you're a healthcare or wellness professional, protect yourself and your career with a Medical Malpractice policy.

Cyber Liability Insurance

Protects businesses from computer-related attacks, such as malware, phishing, ransomware or if a laptop with confidential information is stolen. To quote, call (800) 448-8244

Already know what you need? See all of our Business Insurance products.

Types of Business Insurance

GEICO offers a range of business insurance policies for almost any type of business, including liability coverage, commercial vehicle insurance, and even cyber liability. Browse our selection below to get more information about the business insurance that's right for you!

Two coverages you need, combined in a single policy. See why businesses trust GEICO to help them with their business insurance needs with coverage for:

• Bodily injury or property damage
• Defense costs for covered liability losses
• Business furniture and equipment

Start Quote

General Liability Insurance/CGL

CGL can help cover your business while performing normal operations. Coverages include:

• Physical injury liability
• Property damage liability
• Lawsuits costs for covered losses

From Personal Trainers to IT Consultants, you need Professional Liability Insurance (PL), also called Errors & Omissions (E&O) insurance. This coverage protects you for:

• Mistakes or advice your company makes in business
• Legal defense costs
• Services completed

Workers' Compensation

This coverage is mandatory if your business has employees. Workers' comp covers a business' employees if they're injured at work. In general, policies cover:

• Medical expenses
• Rehabilitation expenses

Quick, easy, comprehensive coverage for groups and individuals working as Nurse Practitioners, Physician Assistants, Nurse Anesthetists (CRNAs), Registered Nurses, Optometrists, Physical Therapists, Yoga Instructors, Personal Trainers, Nursing Students, and other medical professionals. What's included:

• Protection against claims of negligence
• Defense counsel costs
• Professional reputation coverage

If the driver of a vehicle uses it for their job, work or business, you need a commercial policy. You may need commercial coverage if:

• The vehicle is used to transport goods or people
• The vehicle is used to perform a service
• Employees drive the vehicle

Protects businesses from computer-related attacks, such as malware, phishing, ransomware or if a laptop with confidential information on it is stolen. To quote, call (800) 448-8244

Business Insurance: Get the answers you're looking for.

• What's so important about business insurance? Business insurance covers the costs of property damage and liability claims. Without business insurance, you could pay exorbitant out-of-pocket costs for damages or claims against your enterprise.
• What does business insurance cover? There are multiple types of business insurance. What your policy covers will depend on the type of business you own and the coverage you choose. Generally, business insurance is designed to cover bodily injury or medical expenses, libel, slander, defending lawsuits, and settlements from court claims.
• What kind of business insurance do I need? General liability insurance is typically a good idea for most businesses. If you have a company car, commercial auto insurance is a necessity.

Important Information: If you currently have an active flood insurance policy, please call us for the most accurate quote at (800) 566-1575 .

If you don't currently have an active flood policy, click "Continue" to get a quote online.

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Call (888) 395-1200 or log in to your current Homeowners , Renters , or Condo policy to review your policy and contact a customer service agent to discuss your jewelry insurance options.

The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.

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New Allianz Ayudhya-BDMS insurance plan targets working professionals

Allianz ayudhya general insurance (aagi) is launching a new insurance plan in collaboration with bangkok dusit medical services (bdms), the company said on thursday..

The new insurance plan, known as "Exclusive Care @BDMS" , aims to attract working professionals by offering lower premiums.

The move comes after the success of their prestige insurance plan, "My First Class @BDMS”, which targeted the high-net-worth income group in 2018. 

Lars Heibutzki, president and CEO of AAGI, one of Thailand's leading insurers, told a press conference that the new insurance plan is expected to collect 1 billion baht in total premiums over the next five years. 

"We would like to take the partnership with BDMS to the next level. By combining our expertise as a world-class insurer with BDMS’ capacity as a world-class healthcare provider, we are introducing a new health insurance plan aimed at the working professional segment, which aligns with our plan to grow in the mid- to upper-tier segment due to its significant potential," he stated.

He said that this insurance plan would mark the first time both companies would focus on an O2O (online to offline) sales journey, integrating business across online and offline platforms for maximum sales efficiency and customer convenience.

"We are confident that this collaboration would serve the needs of Allianz Ayudhya customers as well as patients at BDMS network hospitals," he noted.

BDMS chief financial officer Narumol Noi-am lauded the partnership with Allianz Ayudhya, and expected it to help both parties increase their customer base.

"Regarding this collaboration, we have jointly developed a health protection product and cooperated on marketing strategies, in order to promote and publicise the product in our hospital network," she said.

Napha Trirattanawongse, AAGI's country chief health officer, assured customers that the plan would meet their needs, such as the pre-authorisation service, which allows customers to check and manage their rights and coverage prior to receiving hospital treatment, and the health concierge service, which helps coordinate and facilitate customer access to medical specialists for consultations.

Exclusive Care @BDMS offers two plans with medical coverage amounts of 1.5 million baht and 5 million baht per year, with a pay as you go scheme.

The move comes amid fierce competition in the country's insurance and healthcare sectors. Both markets are expected to grow amid rising demand for healthcare services and insurance. 

According to Statista.com, Thailand's life and health insurance market is expected to generate US$20.18 billion in gross written premiums this year. Meanwhile, the average spending per capita in the life insurance market is expected to be $280.80 (around 10,000 baht).

The market is experiencing strong growth as a result of increased awareness of financial protection benefits, the development of new product offerings tailored to specific needs, and rising disposable income, which allows for higher insurance premiums.

In order to strengthen their market presence and expand their customer base, some insurance companies have collaborated with potential partners to differentiate their products with new offerings.

For example, FWD Life Insurance collaborated with True Group, Thailand's leading mobile network provider, to launch a marketing campaign, while CoverGo, an insurance platform provider, partnered with AXA Insurance to revamp AXA's health insurance ecosystem in Thailand.

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Home insurance premiums soar 55% – here's how you can mitigate rising costs

Shopping for insurance providers is one way to lower costs.

Homeowners can take steps to mitigate soaring insurance costs. ( iStock )

Homeowner insurance premiums have increased by 55% in the last four years as losses build and insurers struggle to recoup costs, according to a recent report.

In 2023 alone, insurance rates jumped 19%, the Guaranteed Rate Insurance  report  said. Prices are forecasted to keep rising as the increased frequency of natural disasters builds and inflation impacts home replacement costs. Those living in Florida, Texas and California have been hardest hit by the increased costs and nonrenewals as some carriers pulled out of those markets.  

"One of the most evident market trends in 2023, which will continue into 2024, is continued volatility, particularly as it relates to the presence of top in-state carriers and the availability of insurance," the Guaranteed Rate report said. "In some areas, top carriers are no longer offering new policies. These exits, however, have not caused 'vacuums' as there is evidence of new carriers, especially surplus lines, in select states entering the market due to the ability to offer policies at higher premiums."

Whether your concern is hurricane damage, tornado damage, wind damage or flood damage, it's best to obtain multiple quotes from several insurance companies to compare prices and what is and isn't covered. To help you find the best insurance rate for your situation, visit Credible to compare multiple providers and choose the right option .

BUY A HOME IN THESE STATES TO GET STUDENT LOAN DEBT RELIEF

Home insurance adds to affordability challenge

Rising insurance costs add to the affordability challenges of homeownership. Consumers also face high mortgage rates and home prices. The average 30-year fixed-rate mortgage  has held steady above the 7%  range for the past two weeks, according to Freddie Mac.

Meanwhile, home prices continue to increase and are now 6.4% above their level last year, up from the 6% increase registered in January, according to the latest S&P CoreLogic Case-Shiller national home price index  report .

Much like insurance rates, mortgage rates are forecasted to remain high as the Federal Reserve stalls on dialing back interest rates. Fed officials have said in past meetings that they anticipated rate cuts for 2024, but need more confidence that inflation is heading toward the 2% target rate. Mortgage rates are closely tied to interest rate movements. 

Home prices are likely to keep gaining, too.  Fannie Mae adjusted its home price projection  and forecasts upward, forecasting prices to increase 4.8% annually in 2024 and 1.5% in 2025.

If you have a mortgage, you're typically required to carry homeowners insurance, but you don't have to stick with any particular insurance company. If you want to save on your home insurance costs, you could shop around for the best rate. Credible can help you compare home insurance rates from top insurance carriers all in one place.

HOMEOWNERS COULD SAVE TENS OF THOUSANDS IN DAMAGES BY USING SMART DEVICES

How to mitigate rising insurance costs

While rising insurance costs affect most homeowners, taking these steps can help lower costs, reduce risk and ensure you have proper coverage:

Shop for a new policy

Comparing insurance rates across multiple carriers is one way to lower costs. 

"This process is critical and can reveal potential savings, as each carrier uses proprietary formulas and algorithms to determine rates," Guaranteed Rate said. 

Increase your deductible

By increasing your deductibles, you agree to take on a larger share of the replacement costs following a claim, typically resulting in a decrease in your premium.

"Even if an individual's insurer has automatically raised the deductible at renewal, customers may still save money on their premium by further increasing their deductible," Guaranteed Rate said.

Bundle your home and car insurance

Consumers have long turned to bundling homeowners and auto insurance policies as one way to lower costs. Depending on the state, many insurance carriers offer premium discounts of up to 5% – 20% if customers bundle their policies, according to the report.

Make sure you are covered properly

Homeowners who actively check their policy can review it to see if it meets their needs and if they are paying for the coverage they want. However, be careful not to reduce coverage to the point where you are no longer adequately covered.

"Escalating inflation and trade expenses have led to instances where homeowners facing a loss realize their coverage limits are inadequate for rebuilding purposes," Guaranteed Rate said. 

If you want to make sure you have enough insurance and the right coverage for your needs, you can visit Credible to check out plans, providers and costs .

THIS IS THE #1 CITY FOR FIRST-TIME HOMEBUYERS, AND OTHER HOT US HOUSING MARKETS

Have a finance-related question, but don't know who to ask?  Email The Credible Money Expert at  [email protected]  and your question might be answered by Credible in our Money Expert column.

What’s covered when someone else drives your car? Understanding permissive use

Ever lend your car to a friend or family member? Great! But have you considered how your insurance handles that situation? This is where the concept of "car insurance permissive use" comes in.

In this article, Cheap Insurance will answer your questions about permissive use and your car insurance policy.

What is Permissive Use in Car Insurance?

Permissive use refers to a provision in most car insurance policies that extends coverage to someone other than the named insured or listed drivers on the policy. In simpler terms, if you give someone permission to drive your car, and they have an accident , permissive use kicks in and your insurance may cover the damages – depending on the specifics of your policy.

This permission can be explicit, like verbally handing over the keys and saying, "Go for it!" Permissive use can also be implied, such as letting your spouse borrow the car for errands without explicitly mentioning it.

It's important to note that permissive use is intended for occasional or short-term driving. If someone will be using your car regularly, they should be added as a driver to your policy for proper coverage.

How Does Permissive Use Work?

Imagine you lend your car to a friend for a quick trip to the store. They accidentally bump into a parked car while backing out. Thankfully, nobody is hurt, but there's some damage. Here's how permissive use might work in this scenario:

• Accident and Coverage Trigger: Since your friend had your permission to drive, permissive use could apply. Your insurance company would be notified of the accident.
• Policy Review: The insurance company will review your policy details and the specifics of the situation. They'll confirm your friend was a permissive user and that the use fell within the policy's guidelines, for example, occasional driving.
• Coverage Limits: Assuming everything checks out, your insurance would typically cover the damages in an accident, up to your policy limits. There might be a deductible you'd be responsible for paying as well.
• Potential Impact on You: While your insurance should cover the accident, it's important to understand that filing a claim could still impact your auto insurance premiums in the future.
• The Driver Needs Permission: This seems obvious, but it's crucial. Permissive use only applies if the driver has your consent to operate your vehicle. If someone takes your car without permission – which is considered theft – your insurance won't cover the damages they cause.
• Coverage Extends, Not Transfers: While your insurance may cover the accident, it doesn't necessarily mean your coverage limits are automatically transferred to the permissive driver. Your policy dictates the extent of coverage for permissive users, which could be the same, reduced, or even come with a higher deductible.
• Frequency Matters: Permissive use is typically intended for occasional use. Many policies have limitations on how often someone can drive your car under permissive use (often around 12 times a year). If someone will be using your car more frequently, adding them as a named driver on your policy is the best course of action.
• The Permissive Driver's Record Matters: Insurance companies consider the driving history of anyone operating the insured vehicle. If the permissive driver has a poor driving record, it could impact your coverage or even lead to a premium increase.

Permissive use is not a guarantee of coverage. There can be exclusions depending on your policy and the situation.

Is Permissive Use Included in Every Car Insurance Policy?

Permissive use is a common feature, but it's not guaranteed in every single auto insurance policy. Here's what you need to know:

• Most Policies Include It: The vast majority of standard car insurance policies include permissive use coverage. It's a widely accepted practice within the insurance industry.
• Policy Variations: While widespread, permissive use isn't universally included. Some specialized car insurance policies, particularly those for collector cars or high-risk drivers, might have limited or excluded permissive use coverage.
• State Regulations: Insurance is regulated at the state level. Some states may have specific requirements or limitations regarding permissive use that your insurance company must adhere to.
• Always Check Your Policy: Don't rely on assumptions. It's crucial to review your own car insurance policy documents to confirm if permissive use is included and understand the specific terms.
• Variations Exist: While most policies include permissive use, there might be variations in the extent of coverage provided. This could involve differences in liability limits, collision coverage , or comprehensive coverage application, or deductible amounts for permissive drivers.

If you're unsure about permissive use in your policy, contact your insurance agent directly. They can clarify the details and ensure you have the right coverage for your needs.

How Does Permissive Use Protect Car Owners?

Permissive use offers several key benefits for car owners, providing peace of mind in situations where you lend your vehicle:

• Financial Protection: In the unfortunate event of an accident while someone else is driving your car with your permission, permissive use can be a lifesaver. Your insurance may cover property damage and bodily injury inflicted on others, depending on your policy limits. This can shield you from significant financial liabilities.
• Reduced Legal Risk: Accidents can lead to lawsuits. Permissive use can help minimize your legal exposure if the permissive driver causes an accident. Your insurance company can provide legal defense as stipulated in your policy.
• Preserves Your Coverage: Without permissive use, if someone else is driving your car and has an accident, your insurance company might deny coverage entirely. This could lead to financial penalties and even policy cancellation. Permissive use helps ensure your own coverage remains intact.
• Peace of Mind: Knowing you're covered when someone borrows your car allows you to lend it out with greater confidence. Permissive use eliminates the worry of being solely responsible for any potential damages caused by a permitted driver.

Permissive use isn't a replacement for responsible car lending. It's always wise to verify that a driver has a good driving record and ensure they have a valid driver's license, before lending them your vehicle.

Weighing the Pros and Cons of Permissive Use

Understanding car insurance permissive use is essential for responsible car ownership. It offers clear advantages:

• Financial Protection: Covers damages caused by others driving your car with permission.
• Investment Protection: Safeguards your vehicle from financial losses due to accidents during permissive use.
• Peace of Mind: Allows you to lend your car without constant worry about financial liability.

However, there are also some things to consider:

• Coverage Variations: Permissive use coverage can differ between policies. Always check your policy details.
• Impact on Rates: A permissive driver's poor record might affect your rates.
• Frequency Limits: Permissive use is meant for occasional driving, not regular use.

By understanding both the benefits and limitations of permissive use, you can make informed decisions about lending your car and ensure you have the right vehicle insurance coverage in place. When in doubt, consult your insurance agent to clarify any questions and tailor your policy for optimal protection.

This story was produced by CheapInsurance.com and reviewed and distributed by Stacker Media.

© Stacker Media, LLC.

This story was originally published May 10, 2024, 8:45 AM.

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In-person and online in English "How to Start at Business"

Date and time.

Thursday, May 16, 2024 12:30 - 1:30 p.m. EDT

41-17 Main Street, Ground Level Room A&B Flushing , NY 11355

Man-Li Kuo Lin [email protected] 212-264-7060

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LaGuardia Community College SBDC Outreach Center at Queens College

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Resource Partner event

Event description

In-person and on Zoom hybrid

Location: Flushing Library (41-17 Main St ground level, Flushing)

Join on Zoom:

12:30pm-1:30pm in English “How to Start a Business 

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Zoom Meeting ID: 883 9874 1494, Passcode: 4117

2pm-3pm in Mandarin “How to Start a Business

https://queenslib.org/43AtRV0

Zoom Meeting ID: 813 4972 1455, Passcode: 914501

Join us to learn: Ten Steps to Start a Business; Personal Assessment; Writing a Business Plan, Choosing Your Business Structure: Pros and Cons of Sole proprietorship, Partnership, Corporation, and LLC; Procedure to Register a Business; Responsibilities as an Employer; Business Insurance; Franchise Opportunities; Home Based Business Regulations; Resources and Assistance

Presenter: Ms. Man-Li Lin, Economic Development Specialist, SBA Metro District Office

The fundamentals of term life insurance

Why choose term life insurance, who is term life insurance best for.

• How to buy term life insurance 

Term Life Insurance: Simple, Affordable Protection

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

• Term life insurance offers coverage for buyers who want to protect their family for a limited time.
• 99% of term policies never pay out due to conversion, expiration, or lapsed payments.
• Not all term life insurance policies can be converted to permanent life insurance.

Life insurance can financially make or break a family after an unexpected loss. Yet, many individuals don't prioritize it, especially while young and healthy. Ironically, the best time to buy life insurance is also the time when buyers are least likely to see the long-term value. "If you don't make it home and someone relies on your income to live, you need life insurance," says Mark Williams, CEO of Brokers International.

It may feel difficult to justify paying for another big monthly expense on top of housing, car payments, student loans, and retirement savings. But when it comes to protecting your family, if a devastating loss occurs, an extra $20 to $60 a month is a small price to pay. If you're buying term life insurance, the goal is to protect family members should you die unexpectedly within a pre-agreed term.

Term life insurance offers temporary coverage, usually over a 10-, 20-, or 30-year period. If you die during your term, your beneficiaries get your payout, known as the death benefit. Unlike permanent life insurance , which lasts your lifetime, term life insurance doesn't offer a cash value component . This feature allows you to earn interest on a portion of your premiums to grow your policy. 

The main appeal of this type of insurance policy is its affordability. The best term life insurance can keep costs down, especially for younger, healthy individuals. However, keep in mind that if you decide to renew your policy, your premiums will increase based on your age and health status. 

Cover specific needs

Many people only require life insurance to protect their dependents financially if they pass away. For example, say you have children who rely on your income or a spouse you share a mortgage with. Temporary coverage is ideal if you want protection for specific temporary needs until your children move out or the mortgage gets paid off. 

Flexibility

Term life insurance gives you the flexibility to select the coverage amount and the length of the term based on your family's needs and your budget. You can add a term life conversion rider to your policy (some policies already include this benefit). This add-on upgrades your term to a permanent policy if you opt to convert within a certain amount of time. 

Affordability

Term life insurance is ideal if you need substantial coverage but are working with a limited budget. According to Policygenius , the average monthly premium for a $500,000 policy is $27. Compare this to the average monthly cost of a $50,000 whole life insurance policy, which is $451. 

Term life insurance is best for anyone who requires temporary insurance and wants the most coverage at a competitive rate. Life insurance is particularly crucial for families with young children and those with an outstanding mortgage. It ensures your dependents can maintain their current lifestyle and pay off their debts. 

On the other hand, if you have long-term dependents, such as a child with a developmental disability or an elder parent with dementia, permanent life insurance may be a more suitable option.

How to buy term life insurance 

Term life insurance can be purchased through industry giants like New York Life Insurance , Guardian, and MassMutual Life Insurance . If you want a higher value policy, the option to convert at a later time, or term riders to temporarily increase the value of a whole life insurance policy, we'd recommend working with established giants. 

However, many online-only companies like Ethos and Ladder Life offer easy alternatives for people willing to accept less flexibility for a lower monthly premium. We've rated the best term life insurance companies based on coverage, price, service, and other key factors. Whatever you choose, we recommend shopping around. There are four steps to purchasing term life insurance:

Step 1: Apply

Some insurance companies allow you to obtain a term life insurance quote online. Others require you to speak to one of their insurance agents. Regardless, you'll typically have to take a health questionnaire and medical exam to qualify for a policy. If you have pre-existing health conditions that disqualify you from a traditional term life policy, consider looking into no medical exam life insurance .

You can find our guide on the best no medical exam life insurance here.

Step 2: Choose a term

According to Guardian Life Insurance , a good rule of thumb is to choose a term long enough to see your children out of the house and through college. You'll pay more monthly for a longer term, but it is better to be cautious because you don't know what the future holds. Also, getting insurance when you are young and in good health is usually easier.

Step 3: Decide a death benefit amount 

Ten times your annual salary is a rule of thumb, but you can decide what works for your family and financial situation. Work with an insurance agent or a financial advisor to determine how much coverage you need. 

Step 4: Name a beneficiary

A beneficiary is the person you select to receive the death benefit. You can pick multiple people, a trust you've set up, or a charity, according to the Insurance Information Institute . Most people select their spouse, partner, or trust created for a child.

Term life insurance FAQs

When your term ends, you no longer have coverage. If you die after your coverage ends, your beneficiaries won't receive a death benefit. To ensure continuity in coverage, you can purchase another term. Alternatively, many policies offer built-in conversions or conversion riders at an extra premium to upgrade your term into a permanent policy. 

It depends, but you'll likely see increased premiums . Some companies offer no medical exam life insurance, allowing you to obtain coverage despite your medical condition. However, these policies tend to have higher premiums for limited coverage. 

Roughly 10 to 15 times your income. However, this figure can vary based on your debts, income, mortgage, final expenses, and your children's future educational expenses. Work with an insurance agent or a financial advisor to accurately assess your term life insurance needs.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

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But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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Stress, confusion and uncertainty as borrowers navigate Biden debt relief plans

When student loan repayments began last October, Rachel Grace was faced with a painful financial choice: start making payments or drop her health insurance coverage. She chose her loans and has since been crossing her fingers that she stays healthy.

“We’re already all pinching pennies. It was that big health insurance cost every month that I thought was the one place where, at least for now, fingers crossed, I can do without so that I can tackle this loan payment,” said Grace, who is 39 and works in marketing communications in Nebraska. “Of course, that could change in an instant, and that’s scary.”

But this week, Grace got the news she'd been in financial limbo over for months — her federal loans were being forgiven, wiping out a roughly $300 a month payment, under a Biden administration plan to clear the loan balances for those who have been making payments for at least 20 years.

After the Supreme Court rejected President Joe Biden’s sweeping debt forgiveness proposal and a Covid-era pause on student loan payments expired , millions of borrowers have been faced with tough financial choices and a web of new debt relief plans and administrative delays that have left many in limbo over if and when their debt will be forgiven, said student debt counselors and borrowers.

“The road to hell is paved with good intentions,” said Betsy Mayotte, the head of the Institute of Student Loan Advisors, a nonprofit that provides free student loan advice. “I have seen a significant number of borrowers who have had relief, but on the flip side, because everything has had to happen really fast, it’s also caused some confusion for borrowers and it’s caused some bumps in the road.”

But the effects of that relief are starting to be felt by more borrowers like Grace, something the Biden campaign is working to capitalize on in the months leading up to the election.

Biden’s efforts to provide relief to student loan borrowers has been a top policy priority during his time in office. The Biden administration says it has provided student debt relief to 4.6 million Americans through more than two dozen different programs, including fixes to a pre-existing loan forgiveness program for public service workers, erasing debt for borrowers defrauded or misled by their school and expanding debt forgiveness for people with disabilities.

Last month, Biden proposed additional plans he said would reduce or erase the student loan debts for millions more as early as this fall, an Education Department official said.

But many borrowers have struggled to make sense of what all those initiatives mean for them or see the full benefits as some programs continue to be implemented, said Robert Farrington, who counsels student loan borrowers and is editor-in-chief of the website The College Investor.

“There is a firehose of announcements and new programs and so many various nuances to all of these things. There’s different repayment plans, there’s different forgiveness programs, different lawsuits,” said Farrington. “It’s hard for borrowers to even know what applies to them. It’s so confusing.”

Education Department officials say borrowers who believe they are eligible for debt relief but haven’t received it yet should contact their loan servicer or the department ombudsman ’ s office .

Amid the confusion, the Biden campaign has been seeking to show the real-world impact on borrowers who have received debt forgiveness in its pitch to voters for a second term, a campaign official said. Biden and other top administration officials have fanned out across the country to tout their efforts.

In one instance, Biden visited the home of a former school principal in North Carolina who had $90,000 in debt erased under the public service loan forgiveness program, a decades-old program the Biden administration has made changes to in order for more borrowers to qualify. A TikTok video of the visit made by the man’s son got millions of views.

Still, the majority of voters have said they disapproved of Biden’s handling of the student loan issue — with 44% approving, making it Biden’s strongest area among registered voters, according to an NBC News poll last month. In a separate poll by the Harvard Institute of Politics, just 39% of voters under age 30 said they approved of the job Biden has done on student loans. But like in the NBC poll, it was a higher approval rating than on other key issues.

The campaign official said it will take more time and aggressive messaging to get the attention of voters, whom the campaign believes are not yet paying close attention to the election. The campaign is also seeking to contrast Biden’s policies with those of former President Donald Trump, who has opposed student debt relief programs and actively sought to eliminate funding for them while president.

Rep. James Clyburn, D-S.C., a close Biden ally, said he expects tens of thousands of additional borrowers to see debt relief ahead of the election as Biden’s programs continue to be implemented, giving the campaign more opportunities to highlight the contrast with Trump’s opposition to such programs, he said.

“Who do you want to put in charge of that program?” Clyburn said in an interview with NBC News. “The guy who refused to implement it?”

Biden “has implemented the program that [Trump] tried to get rid of,” Clyburn continued.

But for the millions of borrowers not eligible to have their debt cleared, they have been required to make payments since October, creating an additional financial strain for many. Around 40% of borrowers who have resumed payments said they are cutting back on spending while 29% said they were reducing the amount they were saving, according to a University of Michigan survey released in January.

The survey found that borrowers who had lower incomes, less education and weaker income prospects were more likely to increase their use of credit to maintain their spending amid the resumption of loan payments.

Others have opted not to make their payments. Around 64% of borrowers who had payments due were current on their student loan payments as of the end of December, according to the Department of Education.

The Biden administration has said it will hold off until this fall on enforcing the harshest penalties for nonpayment, like reporting delinquent borrowers to credit rating agencies and using forced collections.

Mayotte said a number of borrowers she works with have been holding off on making their payments because they can’t afford them or have opted to use the money to pay down higher-interest debt or to invest in high-yield savings or investing accounts until the administration’s nonpayment penalties kick in.

Once that happens, the wider implications of the restart in payments could be felt, but so far it hasn’t appeared to have had a significant impact on the wider economy, according to an analysis by Wells Fargo.

For Grace, who took out around $40,000 in private and federal loans to attend a four-year public university in 2003, she said her monthly loan payments have been a heavy burden on her finances since she first started making them more than a decade ago.

At the start of her career, her loan payments amounted to more than 15% of her take-home pay, preventing her from being able to build up an emergency fund for unexpected costs, like a car repair, and causing her to rack up credit card debt. For years, she said, she had to work a second job on the weekends to cover her expenses.

But her financial picture drastically changed during the pandemic when the Covid payment pause began. Without that monthly loan payment, she said she was able to start building up her savings and pay off credit card debt. Eventually, she was able to buy her first home.

“Prior to that pause, things were pretty dire,” Grace said. “And so this gave me the opportunity to really finally start to catch up. It’s amazing what happens when you don’t have hundreds of dollars month after month going to this.”

Grace said she knew the payment would eventually restart and didn’t take on any additional monthly expenses. But with inflation driving up the cost of everything from groceries to utilities, the resumption of the payment was an even bigger strain on her budget than before.

When it came time for the payments to restart in October on the $10,000 she still owes, Grace was also making a decision about signing up for her employer’s health insurance plan for 2024. She opted to take the risk of going without health insurance to continue making progress on paying down her debt.

With her federal loan payment now forgiven, she knows what she will do with the extra next month.

“I won’t be going to Target with that money, I won’t be going on vacation,” she said. “I will be enrolling in health insurance.”

Shannon Pettypiece is senior policy reporter for NBC News digital.