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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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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! - The World's Leading Business Plan Template Directory

Insurance Business Plan Template & Example [Updated 2024]


Insurance Business Plan

If you want to start a successful insurance agency or expand your current insurance business, you need a business plan.

The following sample insurance business plan provides the key elements to include in a successful insurance agency business plan.

You can download our Insurance Agency Business Plan Template (including a full, customizable financial model) to your computer here.

Sample Insurance Agency Business Plan

Below are links to a sample of each of the key sections of a successful insurance agency business plan.

  • Executive Summary – The Executive Summary of your insurance agency business plan should include a brief overview of your entire business plan touching on key points such as the insurance products you offer, your target market, and why customers should choose your insurance agency.
  • Company Overview – This section should provide an in-depth overview of your insurance company, its history, legal structure, and the milestones you hope to achieve.
  • Industry Analysis – In this section, you should describe the insurance industry and any major trends that might impact your insurance business.
  • Customer Analysis – In the Customer Analysis section, you should include an analysis of the target customers you plan to serve including demographics and psychographics.
  • Competitive Analysis – In this section, you should include information about your competitors, their strengths and weaknesses, and how your competitive advantage will put you above the competition.
  • Marketing Plan – In the Marketing Plan section, you should include an overview of your marketing strategy and outline the channels you will use to reach and engage your target customers.
  • Operations Plan – The Operations Plan section should provide an overview of the daily operations of your insurance business and outline any systems, processes, and procedures you have in place.
  • Management Team – In the Management Team section, you should include information about each key team member and the experience they bring to the business.
  • Financial Plan – The Financial Plan section should include a 3 to 5-year profit and loss statement, cash flow statement, balance sheet, breakeven analysis, and other financial projections to demonstrate the success of your agency.

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Insurance Business Plan Outline

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Insurance Agent Business Plan

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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.

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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

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Upmetrics Team

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Download Insurance Agent Business Plan

Insurance Agency Business Plan Guide + Free Example

insurance business plan examples

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.  

insurance business plan examples

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

insurance business plan examples

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. 

insurance business plan examples

  • 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.

insurance business plan examples

  • 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. 

insurance business plan examples

  • 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.

insurance business plan examples

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.

insurance business plan examples

 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.

insurance business plan examples

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.

insurance business plan examples

 Outlines the company's projected cash inflows and outflows.

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

insurance business plan examples

  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.

insurance business plan examples

Watch how to create financial projections for your Insurance Agency

insurance business plan examples

Key Point  4 

insurance business plan examples

  • 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.

insurance business plan examples

  • 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.

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April 20, 2020

How to create a business plan for your insurance agency, 12 min read.

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Topic: Insurance Marketing Insurance Agency Management sales Start an Agency Grow an Agency

“What’s the plan?”

That’s the question my wife and I ask each other every day about 3:00 in the afternoon. We have pretty busy lives with multiple businesses, children, hobbies, and activities to manage. So, probably just like you, we need a plan to get it all done!

If a plan is important for getting a family through the day, how much more important is a plan for an insurance agency with customers to serve, sales to make, companies to satisfy, and employees to manage?

It’s critical.

But who has time to plan with all that going on?

That’s a great and valid question. The other one for the typical Type A insurance business owner is, “Can I get someone else to do it for me?” and, “What’s the minimum planning that will yield the most impact?” 

Assuming you have goals to meet and would like every day to be something other than crisis management, let’s take a look at this from a high level. 

Getting Started With Your Business Plan

Creating a business plan sounds like work, doesn’t it? It doesn’t have to be. Really, this process is as simple as putting on paper your three-to-five-year goals and general means to achieve them. 

For example, this is a super-simple plan template:

What are sales going to be each year for 3 years?

Net profits? What do you want your balance sheet to look like? 

What is your ideal business mix? What products and services do you want to sell the most of?

What kind of customers do you want to serve? What do they look like demographically (i.e. target market)?

How many employees does it take to get this done? 

A plan can be a whole lot more complicated, and potentially more valuable, but if you have lots to do, this takes a couple of minutes and it’s a great start.

Consider This Question To Help You Focus:

During lunch with a successful entrepreneur in a business completely unrelated to mine, he asked me this wonderful and powerful question during our meal.

“What are the best opportunities in front of you right now?”

That question really focuses the mind.

I was able to give him an immediate answer and listed for him four priorities for myself and my team. We have more than four opportunities in front of us, so I was interested in my own immediate reaction. You see, like most entrepreneurs and small business owners, I am constantly seeing opportunities and weighing my capabilities and interests.

I answered my friend with four things and a quick note as to why they were important and valuable for our business. It didn’t take a lengthy market analysis or sales forecasting - the question really helped me to focus, prioritize, and verbalize what I want to capitalize on out of many choices. It happened in an instant and will now guide us as we plan for the next year or two - this is the simplest version of an executive summary and it will guide our sales strategy.

OAA Highlight - How to Create A Business Plan

Most successful business owners are highly focused people, who don’t pursue every single business idea that runs through their heads. They understand that resources like time, capital, and people are limited. Regardless of their relative level of optimism (an absolute requirement and one of the main keys to success opportunities, but the more successful they become, the more realistic actual opportunities are for them.

So, as they go about building a bigger and bigger future, choosing which opportunities to pursue every year of operation becomes an ever more important task.

As we face the future and the demands of many others who want us to focus on their priorities (opportunities!), choosing which things we will concentrate our efforts on becomes a critical decision for every insurance agent and businessperson.

What about you? What are the best opportunities in front of you right now? Those are the ones to focus your planning.

Let’s Do Some Thinking

Everyone, and every business, is different. I start planning for the next year in the fourth quarter of the year before. Your timing may be different than mine. But you do set aside time to think about the business and plan for the coming year, don’t you? Or do you just let it happen?

This is a great time to be honest with ourselves about this! Let me suggest that if you don’t do annual thinking that you consider it. It’s not hard. It doesn’t have to take a long time but is really important in sustaining growth .

Here are some of the things I think about.

What can we accomplish?

What is a revenue goal that is achievable within our current capabilities? As I think about this I ponder the knowns about what the market is doing and which insurance products are more likely to sell.

Are rates up or down? Has the weather this year been good or bad?

What can we expect from Profit Sharing and PMSF (you do get PMSF, don’t you?)

What kind of activity and results are our current marketing efforts producing? How is our market share?

What is going to happen to overhead next year? 

Do we have rent increases, automation increases, or other overhead cost increases coming?

What about employee benefits and payroll?

Do we need additional employees to manage the expected normal growth?

Do we have a place for them to work? Equipment to use?

When do we need them?

Now comes the fun part! 

What could we do if we really stretched ourselves? 

If we are to do that, what else must we do?

Do we need to increase marketing investment?

Are there any potential investors we should talk to?

Hire additional people? Modify compensation strategies?

Open another office or expand this one?

Add a CRM program?

These and endless other things can and should be considered.

We can’t develop a plan for our business until we spend time thinking about it. Perhaps you do this ad hoc from time to time, but now is the time to organize your thinking and your thoughts and start putting things in written form, even if it’s just a few paragraphs. It’s time to think!

Now, Let’s Do Some Planning

I’ve described the thinking process that I use during the early fall to begin to get ready for a productive, growing period in the coming year. The results of the current year are beginning to take shape and the business environment is more clearly understood. After the thinking process comes planning.

Relax! This doesn’t have to be, nor should it be, complicated or time-consuming for a growing agency. Let me encourage you to make a plan that can be put on one sheet of paper. Two at the most. 

If you can’t describe your plans for a year in that space you probably can’t do it all either.

How I Do It

What I do is take the things I’ve uncovered in my thinking process and first use them to create a simple budget:

I increase current year results by what I think is the “steady as she goes” growth and expected rate, profit sharing, PMSF and other revenue changes should produce and put that in a month by month spreadsheet.

Then I take the overhead thinking I’ve done and put that into the expense ledger. Now I’ve got a simple budget. Is the result of that budget what I want it to be based on my goal setting? Or not? If not, I begin to tweak.

Once the budget is all tweaked up I turn to the thinking about the growth goals I want. What does that do to income? What expense increases are required? Those go down on paper and I work on this until I’m satisfied.

This is still not planning! This is budgeting. Now comes the plan:

  • What will be required to get the results we are forecasting? (See the next section!)
  • When and how will we market ?
  • What changes to our website, social media , phone program, referral program, etc. do we need to make?
  • Do we need more employees , insurance companies, cell phones, or other tools? When and where do we plan to acquire them?
  • What else do we need to schedule to do to make the budget work out?

This is planning! See, it’s not hard. It’s really easy when you think about it first!

Now that you’ve done the thinking and planning, next year will be easy. And if you execute on the simple plan you’ve built, tweaking as you go, you’ll get wherever it is you want to go!

More Things to Consider for Your Business Plan

How much activity do you need to get the results you want.

The “Silver Bullet” to agency growth is activity. One of the natural questions is how much? How much activity will it take to get x results? Really, the question is what do I need to do? What do I need to plan for? 

Great questions!

To answer your questions I need a little more information. So, here are my questions to you:

What is your growth goal?

What is your average sale?

What is your closing ratio?

How do you get prospects?

Let’s assume I want to add $25,000 in commission revenue to my agency (growth goal). And let’s assume my average sale nets me $450 (note: this is commission, not premium). 

Let’s also assume I’m an average salesperson and my closing ratio is 35%. Lastly, let’s assume I get my prospects from a direct mail campaign and my response rate is 1.5% of pieces mailed. 

From these assumptions “how much” becomes very clear. 

  • I need 56 sales! ($25,000 goal divided by $450 average sale).
  • I need 160 prospects! (56 sales divided by 35%).
  • I need to mail 10,650 mail pieces (160 prospects divided by 1.5%)

Don’t get hung up on whether you think direct mail is the best way to advertise, or whether you think my closing ratio is good or bad. That’s not the point. The point is, if you know some very basic numbers, you can figure out very easily how much activity you need to reach your goal!

Everyone has a different idea about the best way to sell insurance. We all have different goals, talents, resources, and abilities. But we can all achieve our goals with the appropriate amount of activity. 

Success is simple. Figure out “how much”. Then go do it!

Pay the Business First

One of our Agency Development team recently met with one of our agencies to work with them on business planning. This is a great thing, because without a plan it is virtually impossible to grow rapidly. This particular agent is my favorite kind of person: a dreamer with big dreams! They are ambitious, hard-working, and highly motivated

In their discussions, the agent and our Development Specialist talked about the agent's desire to hire producers and to build their own office building. Both are potentially great ideas. However, there is a small problem: money.

Our agent owner didn't have any…

When we start our businesses, we entrepreneurs usually need every nickel we can find, right? Every dollar that isn't nailed down often finds its way into gasoline, rent, or shoes for the kids. This is normal. But as the business begins to prosper there is a choice to be made: buy nicer stuff, or feed the business.

OAA Highlight - How to Create A Business Plan

We often see agencies with little or no working capital, and without working capital, you simply can't expand, because you can't fund a producer. What bank is going to lend you money on a building when you haven't got any? None. Those days are gone forever.

My partner and I started our agency in 1996, and we didn't take a profit out of the business - not even to pay taxes - until 2003! We were reinvesting all our money in the business.

This is what you must do if you want to keep growing. That doesn't mean you can't take money to improve your family's situation - you can. Do that by increasing your salary over time.

But if you want to keep growing, give the business a raise before you give yourself one. 

Our method was to decide each year what the business was going to make in net profits. Until that number was satisfied we didn't get paid and we didn't get a raise either. This method allowed the business to have the money - its lifeblood! - that it needed to keep expanding.

Look around at the successful people you know. The businesses you admire. Very few of them got where they are except by following this little principle:

Pay The Business First!

Make sure your hours match your business plan .

The world is changing. Technology is taking customers away from us. The new world demands a higher level of service and availability from anyone who wants to sell anything.

If, as an independent agent, personal service is the competitive advantage that will help you reach your goals, why aren’t you open more?

I was at the office on a Saturday morning, and I received a nice note from one of our new members about one of our great team members (thanks Natalie!). I fired off a quick “thank you” to the member and said, “Glad to see another entrepreneur working on a Saturday!”

What was interesting was his response, which I quote verbatim:

“Yep. Many can only come in on Saturday. Plus set up apt to sign two Travelers app issued via Access Plus. And doing an auto and home app for Safeco.”

Why was he working on a Saturday?

Because that was the only time prospects and customers can come to see him.

It seems obvious that anyone trying to sell anything would go where the customers are when they are there.

So, why are almost all insurance agencies only open Monday through Friday from 8:00 am to 5:00 pm? By now, even banks have figured out for a couple of decades now that they need to be open past 5 o’clock and be open on Saturday. 

Mom and Pop businesses all across America have wrung their hands while they went bankrupt when Walmart came to town. They complained they couldn’t compete on price.

I think it’s much more than that. They refused to compete on service. They weren’t there when the customer needed them.

When will insurance agencies get the message? Before for or after bankruptcy?

Build Your Business Plan for the Long Term

“you must prepare for the future if you want one.”.

Plant acorns.

Tyler Asher, President of Safeco Insurance Company, made this headline statement in a speech to an SIAA semi-annual meeting in Boston. His comment was made in the context of a list of things his company is working on to sustain their growth and prepare for a future insurance market, much different from today’s.


If you just take the statement at face value it makes a lot of sense, doesn’t it? Of course, we must all prepare for a bigger future if we want one, and oak is a great symbol of strength and stability. I was immediately captivated by the idea.

But, where the analogy breaks down for me is that it takes a long time to grow oak trees, and the future is coming upon us with breathtaking speed. Do we really have time to grow oak trees?

Then I thought again about a Jeff Bezos quote I wrote about where he says he is more concerned about what stays the same in the next 10 years than about what changes. 

I’ve decided that it’s the intersection of Asher and Bezos where we, as independent agency owners, need to focus.

For example, it’s estimated that 60% of the employees in our industry will retire in the next seven years, and if you believe “Outliers” author, Malcolm Gladwell, it takes at least five years (10,000 hours) to train an expert in anything. 

I believe, channeling Bezos, that customer service and person-to-person selling will be as important to agency success in the future as it is now. So, how are we going to replace the oak trees (people) in our industry fast enough to secure our future?

I don’t have an answer. But, it’s an incredibly important question for anyone who plans to continue to make this industry their career in the decade ahead.

In our organization, we are creating a streamlined training curriculum, coupled with third party courses and old fashioned apprenticeship, to meet our needs for new blood. Frankly, it’s expensive to do this. But the only other options are to hire other’s problems (which is getting harder and more expensive to do) or go out of business.

The need to invest in new people comes while commission compression and new competition (in the form of online sellers) are beginning to stress some agency income statements. As Tyler Asher points out, you must prepare for the future if you want one. 

Viewed in this way, spending on new employees is an investment, not a cost, and the promise of the future is a profitable business built for the long term.

The UnCaptive Agent

Tony Caldwell

Tony Caldwell is a modern “renaissance man,” who is not only immensely successful in the field of insurance, but is also a writer, children’s advocate, mentor and even a licensed pilot. Always keen on helping others make their dreams come true, Tony and his team have helped independent agents grow into more than 250 independent agencies. This has made OAA the number one ranked Strategic Master Agency of SIAA for the last 5 years, and one of Oklahoma's 25 Best Companies to Work for. Tony loves to share his knowledge, insight and wisdom through his bestselling books as well as in free mediums including podcasts and blogs. Tony and his family are members of Crossings Community Church, and he is very active in community initiatives: he’s chairman of It’s My Community Initiative, Inc., a nonprofit working with disadvantaged people in Oklahoma City; and chairman of the Oklahoma Board of Juvenile Affairs., and he has served through many other organizations including the Salvation Army, Last Frontier Council of the Boy Scouts of America, and the Rotary Club. In his spare time, Tony enjoys time with his family. He’s also an active outdoorsman and instrument-rated commercial pilot.

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10+ Insurance Business Plan Examples [ Health, Life, Funeral ]

Insurance Business Plans

Back in 2018, the Insurance Information Institute (III) reported that the insurance industry’s written premiums reached USD 1.22 trillion worth in the United States alone. In line with this, fifty-one percent consists of car and other property insurance, while the forty-nine percent are covered by health and annuity or life insurance. With that much worth in mind, making your very own insurance agency is surely a good idea. So, what’s stopping you? Don’t waste time and create a business plan that outlines your future business process, market analysis , SWOT analysis , marketing strategies, budget , and other business development coverage! For your convenience in planning your financial protection service provider business, we encourage you to look at our examples below!

10+ Insurance Business Plan Examples

1. insurance business plan template.

insurance business plan template

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2. Insurance Agency Business Plan Template

insurance agency business plan template

3. Sample Insurance Agency Business Plan Template

sample insurance agency business plan template

4. Insurance Business Plan Example

insurance business plan example

Size: 69 KB

5. Insurance Business Plan in PDF

insurance business plan in pdf

Size: 129 KB

6. Insurance Agency Business Plan

insurance agency business plan

Size: 165 KB

7. Insurance Financial Business Plan

insurance financial business plan

8. Insurance Agency Business Plan in PDF

insurance agency business plan in pdf

9. Basic Insurance Business Plan

basic insurance business plan

Size: 390 KB

10. Insurance Company Business Plan

insurance company business plan

Size: 59 KB

11. Client Insurance Business Plan Template

client insurance business plan template

What Is an Insurance Business Plan?

An insurance business plan is a process document covering how an insurance agency will be developed and maintained. In the blog site Now From Nationwide, such a document is referred to as a roadmap towards a business’s success . The same article shared that it provides entrepreneurs a clear understanding of all aspects of a business right from its operations to the complete description of its products or services. This document is necessary, especially for startup businesses, to acquire much-needed financial assistance from bank loans or investors. It is also a crucial element in the documentation policy or documentation plan of the business.

Types of Insurance Most People Need

There are many types of insurance , with each of them serving a distinct purpose. However, not all of them are necessary for most people. Investing in the wrong insurance policy can obviously do more harm than good. Here are the types of insurance that people must have:

1. Life Insurance – covers your funeral expenses while securing the financial assistance of your beneficiaries 2. Health Insurance – insure people from medical expenses 3. Disability Insurance – provides financial assistance to workers who lost the capability to work due to a certain disability 4. Auto Insurance – indemnifies people during vehicle mishaps

How To Create an Insurance Business Plan

Every element of a business plan is essential for the development and sustainability of a business. Because of that fact, there’s a need for you to be thorough and concise on its content. Not only those, you also have to make it in accordance with the standard documentation procedure . In order for you to achieve the aforementioned qualities, we have made our standardized outline ready for you. Check them out below.

1. Provide the Executive Summary

Even though the executive summary is the first section of a business plan, it is written last. Its role is to make a good first impression to the readers by abiding by the proper executive summary writing practices. This section must give brief details on the overall business, long-term goals , products or services, target market, methodologies, and financial outlook.

2. Present the Business Overview

The business overview section comes right after the executive summary . In this section, you give out the full details of the mission statement , short-term and long-term goals , target market, business structure, competitive advantage, as well as the product and service descriptions. These areas will help readers know what kind of business you have, how you can sustain it, and who your audience will be.

3. Write Down Sales & Marketing Strategy

After presenting the business overview, write down the sales and marketing strategies for your business. With most business activities shifting to digital platforms, both the sales and marketing aspects of a business plan should focus on online engagement. In fact, many insurance companies attract potential policyholders through their respective websites and social media accounts. The same goes in the selling of these policies.

4. Advance the Operations & Management Processes

Once the strategies for both sales and marketing aspects have been laid down, give the full details on how your business will operate and how it will be sustained in the years to come. It is in this section where you have to proffer various insurance workflows and methodologies. The stakeholders for each of your business’s departments are also considered in this part, along with their job descriptions.

5. Summarize Financial Plan

To conclude your business plan, summarize your financial plan. This should thoroughly discuss the money that you’ll be getting to get your business started and how you’ll be getting them. If you’re a startup, the most common way is to reach out to banks to make loans, which pretty much require business plans.

What is an insurance policy?

An insurance policy is a contract that binds the insurer and the insured. It provides complete details of the premium payment, insurance coverage, and more. The most common provision in all insurance policies is the insurer’s rights to withhold coverage if the insured refuses to pay the premiums.

How does an insurance company make money?

An insurance company makes money in two ways. The first one is through underwritings, where the insurer gambles to offer coverage to the insured with high hopes to collect more money than the payouts. The second one is with investments. Whenever the insured pays their premium, the insurer places them down in financial markets to grow.

What happens to the insurance company when policyholders decide to get their cash back?

Insurance companies not just secure the money of the policyholders, but also grow them. Once these policyholders find that out, they will most likely try to withdraw them right away along with the cash value. At the same time, they close their accounts.

When such a circumstance happens, all the liabilities that the insurance company holds will end. Moreover, it keeps the paid premiums but pays the customer with deductions on the interests brought about by investments. These interests and other remaining cash goes directly to the company’s revenue.

If helping out individuals does not always go hand in hand with making profits, then an insurance business is a special case. There’s no denying that such a business is too risky for an entrepreneur. However, we can’t also disagree with the fact that it can be profitable when done carefully. And, an insurance business plan is a perfect document that can help you with being so.

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Insurance Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Financial Service Industry » Insurance Company

Are you about starting an insurance company ? If YES, here is a complete sample insurance company business plan template & feasibility report you can use for FREE .

If you are considering starting an insurance company, then you would be required to get an insurance license from the organization regulating the insurance industry in your country before you are permitted to start your own insurance company. In the United States of America, it is The National Association of Insurance Commissioners that regulates the industry.

What It Takes to Start an Insurance Company?

No doubt, the process of obtaining an insurance license might not come easy; and this is depending on the part of the world you live in. Any applicant of insurance license would be required to meet certain laid down criteria and sometimes it is the bureaucracy involved in the whole process that makes it difficult to obtain.

As earlier stated, you wouldn’t be allowed to start your own insurance company without first obtaining the license required. For you to be eligible to apply for an insurance license, you must first write and pass some licensure examinations.

If you are serious and determined, you could write and pass the exam in one sitting, but if not, then you should be ready to take the exams over and over again. The bottom line is that these exams do not come  cheap; so you must prove your worth before you can be issued a license.

Aside from the money you would need to rent an office, get the business registered, obtain the required business permits and license and then make provision for the payment of your staff for at least 6 months or more, you should also be ready to meet the financial requirement / capitalization as stated by the insurance regulating body in your country.

Just like the banking industry, the insurance industry is yet another industry that requires that you must have a certain amount of capital base before you can successfully swing into full operation- usually the money required is in the range of several thousands of dollars.

This is so because one of the challenges insurance companies usually face is the inability to pay claims. So in order to cub this challenge, anyone looking towards starting an insurance company must meet the set financial requirement / capitalization.

A Sample Insurance Company Business Plan Template

1. industry overview.

The insurance industry is wide and global in nature; there are numerous aspects anyone interested in starting an insurance company could choose to specialize in. For instance; in the United States of America and even in Canada, pet insurance is one aspect of insurance that is gradually opening up and it is interesting to state that it is a very promising market.

Anyone looking towards starting an insurance company has the option to choose an area of insurance to specialize in or they could choose to start a general insurance company; an insurance company that is involved in the selling of life insurance policy, health insurance policy, auto / car insurance policy and liability insurance amongst others.

The united states of America has the largest insurance market in the world as indicated by the volume of premium payments.

Statistics shows that in 2013 alone, out of the total sum of 4.640 trillion US dollars of gross premiums written in on a global scale, 1.274 trillion US dollars which translate to 27% were actually written in the United States of America. This goes to show how big the insurance industry is in the United States of America.

In a report released by McKinsey & Company, it was estimated that the insurance industry in the United States incurs about 13 billion US dollars annually in unnecessary regulatory costs under the state – based regulatory system

In the insurance industry, it is only the smallest insurers that exist as Single Corporation. It is the practice in the insurance industry for most major insurance companies to exist as insurance groups; they usually partner with holding companies.

This practice has loads of benefits and as a matter of fact insurance groups are known to survive the turbulence in the insurance industry year after year and the survivability of single insurance companies is pretty low.

In some countries trust is one of the key factors that hamper the growth of the insurance industry. Beyond that, the insurance company is still growing and as long as the economy of the country continuous to grow; the insurance company will usually tag along.

The fact that there are several insurance companies and insurance brokerage firms does not in any way stop an investor or entrepreneur who wants to venture into the insurance industry. If you know what you want and you have the right strategy, you will definitely make good success out of the insurance industry.

People are encouraged and motivated to venture into the insurance industry because of the profitability of the industry, and also because of the point that despite the fact that the industry is saturated, there are still more rooms to create your own unique insurance products or even partner with bigger insurance companies if you are able to successfully build your own insurance company to a certain success level.

It is also important to state that if you are an investor who is interested in owning a portfolio in the insurance industry, you may not need to go all the way to write and pass the required insurance exams and obtain the necessary insurance certifications.

All you need to do is to provide the finance and connections needed and then get people who have the required paper / documents to partner with in starting your insurance company.

Just like most business, the insurance industry is pretty open for as many people that are interested in the industry as long as you have what it takes to run an insurance firm. Even if you don’t have the finance and other requirements for starting an insurance company, you can come into the industry by starting – out as an accredited insurance broker.

2. Executive Summary

Mutual Trust Insurance PLC is a general insurance company was incorporated under the United States’ law as a private Limited Liability Company but has the plan in the nearest future to transform in a public limited liability company.

This is so as to enable us get listed in the New York Stock Exchange. We will launch the business in heart of New York City – New York where we will have our headquarters and later spread to other major cities in the United States of America.

Mutual Trust Insurance PLC was established with the sole mandate to conduct insurance business in a highly professional, ethical and customer driven approach. We are aware that businesses this day require diverse and sophisticated approaches. This is why we will position our insurance firm to offer a wide range of insurance products to our target market.

We are well prepared and equipped to compete in the highly competitive insurance market in the United States, which is why we have decided to start out by selling various insurance policy covers such as Life and Annuities Insurance, Health / Medical Insurance, Car / Vehicle Insurance, Pet Insurance, Agricultural Insurance,

Aviation Insurance, Financial Reinsurance, Guaranteed Asset Protection Insurance, Group Insurance, Inland Marine Insurance / Marine Insurance / Shipping Insurance, Travel Insurance, Liability Insurance / Professional Liability Insurance and Property and Casualty Insurance et al.

At Mutual Trust Insurance PLC, our client’s best interest come first, and everything we do is guided by our values and professional ethics. We will ensure that we remain committed to professionalism, integrity, innovation and excellent customer services. We will also ensure that we only hire employees who are well experienced to help us drive the business.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Mutual Trust Insurance PLC is poised at all times to demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

Mutual Trust Insurance PLC is founded by a group of New York based investors led by Dr. Wilcox Carrington and Mrs. Ruth Ferguson.

The organization will be managed by both of them while other partners will be at the background. Dr. Wilcox Carrington graduated from University of California – Berkley (First Degree), Brock School of Business at Stamford University (MBA), and University of Harvard (PhD.).

He has extensive experience in a senior managerial role with some of the world’s leading insurance companies. He will be bringing is wealth of experience and expertise to help grow Mutual Trust Insurance PLC to become a world class insurance company.

3. Our Products and Services

Mutual Trust Insurance PLC is going to offer varieties of insurance products and services within the scope of the insurance industry in the United States of America.

Our intention of starting our insurance company is to make profits from the United States’ market and we will do all that is permitted by the law in the U.S. to achieve our aim and business goals. Our products and service offering are listed below;

  • Life and Annuities Insurance policy cover
  • Health / Medical Insurance policy cover
  • Car / Vehicle Insurance policy cover
  • Pet Insurance policy cover
  • Agricultural Insurance policy cover
  • Aviation Insurance policy cover
  • Financial Reinsurance
  • Guaranteed Asset Protection Insurance policy cover
  • Group Insurance
  • Inland Marine Insurance / Marine Insurance / Shipping Insurance
  • Travel Insurance policy cover
  • Liability Insurance / Professional Liability Insurance
  • Property and Casualty Insurance policy cover
  • Consulting and Advisory Services (Within the Insurance Business)

4. Our Mission and Vision Statement

  • Our vision as an insurance company first and foremost is to make available a wide range of insurance products at an affordable price in the United States of America.
  • Our mission is to be listed as amongst the top 20 insurance company based on revenue generations (premium collections et al), trust and ease of doing business.
  • We will ensure that our clients get their claims as at when due without unnecessary delays.

Our Business Structure

Mutual Trust Insurance PLC will build a solid business structure that can support the growth of our insurance business. We will ensure that we hire competent hands to help us build the business of our dream.

The fact that we want to become one of the leading insurance business brand in the industry in the whole of the United States of America makes it highly necessary for our organization to deliberately build a well – structured business from the onset. Below is the business structure that we will build Mutual Trust Insurance PLC;

  • Chief Executive Officer

Legal Secretary

Head of Premium Collections

Head of Claims

Admin and HR Manager

  • Marketing Executive
  • Customer Care Officer

Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Responsible for providing direction for the business
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board
  • Responsible for drawing up contracts and other legal documents for the company
  • Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
  • Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
  • Responsible for the collection of premiums for the organization
  • Work with software developers to develop efficient and easy to use premium collection software
  • Advises the organization from time to time on how to improve and increase premium collections
  • Collaborates with the head of sales and marketing to ensure that our insurance policies holders does not allow their policies to lapse
  • Follows up on premium payment and send reminders from time to time to our policy holders to pay their premium
  • Responsible for resolving any premium issues with our bank and policy holders.
  • Responsible for the payment of claims to policy holders that files in for claims
  • Ensures that proper investigations are carried out before claims are paid
  • Reviews the organizations’ claims policy from to time to time to make it efficient and measure up with best practices in the industry.
  • Keeps proper record of claims that are paid out by the organization
  • Supervises the claims department
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Marketing / Sales Executive

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Help increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with students on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the school coordinator in an effective and timely manner
  • Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries
  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Receives parcels / documents for the organization
  • Handles enquiries via e-mail and phone calls
  • Distributes mails in the organization
  • Handles any other duties as assigned by the Admin / HR manager

6. SWOT Analysis

Mutual Trust Insurance PLC engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured insurance company that can favorably compete in the highly competitive insurance industry / market in the United States.

Part of what our team of business consultants did was to work with the management of the organization in conducting a SWOT analysis for Mutual Trust Insurance PLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf Mutual Trust Insurance PLC;

It is compulsory for our business to have our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money.

We are well positioned and we know we will attract loads of clients from the first day we open our doors for business. We also have an efficient and effective customized software application that will help carry out seamless insurance activities.

As a new insurance company in the United States, it might take some time for our organization to break into the market; that is perhaps our major weakness.

  • Opportunities:

The opportunities in the insurance industry is massive and we are ready to take advantage of any opportunity that comes our way which is why we are going to be offering a several insurance policies / packages.

One thing is certain, a weak economy is one major factor that is limiting growth opportunities for the insurance industry. Come to think of it, there is hardly any business or investment opportunity that does not come with its own fair share of threats and challenges.

This is why most organization conduct risk assessment on a regular basis so as to enable them produce strategies that will help them stay afloat in the industry.

Another major threat and challenges that we are likely going to face when we start our insurance business is of course the arrival of another insurance company in same location where ours is located and perhaps sell same insurance policy covers as we do.

For sure if we have been able to come up with workable and winning strategies that will help us outsmart our competition in the location where our insurance company is going to be located. With that, we are likely not going to struggle to grow our insurance company and also retain some of the best hands under our employment.

Over and above, just as in any other business and investment vehicles, economic downturn, unstable financial market, natural disasters and unfavorable government economic policies can hamper the growth and profitability of an insurance company.


  • Market Trends

One common trend is that, in the insurance industry, it is only the smallest insurers that exist as Single Corporation. It is the practice in the insurance industry for most major insurance companies to exist as insurance groups; they usually partner with holding companies.

This is why you may hardly find an insurance company that is not into the sale of various insurance policy covers ranging from motor vehicle insurance policy to pet insurance policy cover to marine insurance policy cover et al.

Another trend in the insurance industry is the creativity in premiums collections. Most insurance companies know that the survival of their business lies in the regular payment of premiums which is why they have to go all the way to put system and processes in place that will help the collect premiums from the policies holders with ease.

If you keep tab with successful insurance companies you will realize that they leverage on technology (internet and software applications et al) in running their business.

8. Our Target Market

Although Mutual Trust Insurance PLC will initially serve small to medium sized market in and around New York City – New York, but that does not in any way stop us from growing to be able to compete with the leading insurance companies selling our insurance policies in the cities in the United States.

We hope to someday merge or acquire other smaller insurance companies and expand the sales our insurance products and business beyond the shores of the United States of America.

As a standard insurance company, Mutual Trust Insurance PLC have a range of insurance policy covers and we will also work hard to continue to add more insurance covers that are on sale in the insurance market in the United States of America hence expanding the scope of our target market from time to time.

Our target market cuts across people of different class and people from all walks of life, local and international organizations as well. We are coming into the industry with a business concept that will enable us sale of insurance policies to the highly placed people and companies in the country and at the same to the lowly placed people and smaller businesses.

In other words, our target market is the whole of the United States of America and subsequently other parts of the world. Below is a list of the people and organizations that we have specifically design our products and services for;

  • Students, Young Adults, The Elderly and Children et al
  • Businesses and Entrepreneurs
  • Blue Chips Companies
  • Corporate Organizations
  • Manufacturers and Distributors
  • Real Estate Owners, Developers, and Contractors
  • Research and Development Companies
  • The Government (Public Sector)
  • Schools (High Schools, Colleges and Universities)
  • Sport Organizations
  • Entrepreneurs and Start – Ups

Our competitive advantage

A close study of the insurance industry reveals that the market has become much more intensely competitive over the last decade.

As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in the insurance industry. We are aware of the stiffer competition and we are well prepared to compete favorably with other leading insurance companies in the United States.

Mutual Trust Insurance PLC might be a new entrant into the insurance industry in the United States of America, but the management staffs and board members are considered gurus. They are people who are core professionals and licensed and highly qualified insurance practitioners in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups insurance companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.


  • Sources of Income

Mutual Trust Insurance PLC is established with the aim of maximizing profits in the insurance industry and we are going to go all the way to ensure that we do all it takes to sale our insurance products to a wide range of clients and also ensure that we don’t struggle to collect premiums on a regular basis.

Mutual Trust Insurance PLC will generate income by selling the following insurance policy covers to both individuals and organizations;

10. Sales Forecast

As long as there are people living in the United States of America and business starting and growing in the U.S., they will always purchase one insurance policy cover or the other.

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City, New York to other states in the U.S. and even the global market.

We have been able to critically examine the insurance market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in New York.

Below is the sales projection for Mutual Trust Insurance PLC, it is based on the location of our insurance company and the wide range of insurance products that we will be offering;

  • First Year-: $500,000
  • Second Year-: $1, 500,000
  • Third Year-: $3,000,000

N.B: This projection is done based on what is obtainable in the industry.

  • Marketing Strategy and Sales Strategy

Starting and running an insurance company requires aggressive marketing which is why you have insurance sales men and women are always on your neck to market / sell one insurance cover or the other especially if you live in the United States of America.

So to stay afloat in the insurance industry, you must be ready to spend good cash in marketing, advertising and promoting your insurance products. Your marketing and advertising departments must regularly come out with new innovations and products that can catch the attention of your potential clients.

Which is why when we were drafting our marketing ideas and sales strategies for our insurance company, we ensured that we created a compelling personal and company’s profile that include the profile of our board of directors and management team.

The truth is that if you have honest, trustworthy and successful professional in your board, customers can easily trust you with their hard earned money. In some countries trust is one of the key factors that is hampering the growth of the insurance industry.

Nobody wants to buy insurance policies, pay premium and not certain if they can get claims when the time comes. Here are some of the platforms we will utilize to market our insurance policies;

  • Introduce our business (insurance policy covers) by sending introductory letters alongside your brochure to individuals, investors and corporate organizations
  • Advertise our business in relevant business magazines (insurance magazines and business related magazines) and be available for insurance related talk shows and interactive sessions on TV and Radio stations)
  • List our insurance company on local directories / yellow pages (both online and offline)
  • Attend expos, seminars, and business fair to network and sell our insurance policy covers
  • Leverage on the internet to promote our insurance business / insurance policy covers
  • Join local chambers of commerce around us with the main aim of networking and marketing our insurance products.
  • Engage the services of marketing executives and sales agent to carry out direct marketing of insurance products.

11. Publicity and Advertising Strategy

The insurance business just like any other business requires media hype to get people to buy into the brand. We are aware that our brand has to do with the way people perceive our organization to be which is why we are going to be deliberate when it comes to communicating and promoting our brand.

In promoting and advertising our brand and insurance products, we are going to leverage on both print and electronic media. As a matter of fact, it is cost effective to use social media platforms to promote our brands, besides it is pretty much effective.

Here are the platforms we will leverage on to create brand awareness of your insurance company and to promote our insurance products in the marketplace;

  • We will place adverts on national TV stations, Radio Stations and Newspapers / Magazines
  • We will run our own special TV program (insurance based program)
  • We will sponsor relevant community programs
  • We will leverage on the internet and social media platforms like; Instagram, Facebook , Badoo, YouTube, Twitter et al to promote and advertise of insurance products
  • We will install our Bill Boards in strategic locations all around New York City – New York and other cities in the U.S.
  • We will engage in road show from time to time to create awareness of our insurance company and to sell our products
  • We will distribute our fliers and handbills to targeted areas from time to time
  • We will send out introductory letters to multinationals, embassies, and diaspora organizations and networks in and around New York City
  • We will encourage the use of word of mouth especially from loyal customers
  • We will ensure that all our vehicles are branded with our company’s logo.

12. Our Pricing Strategy

When it comes to pricing products in the insurance industry, there is an established trend and in most cases it is determined by the risk involved in the products / insurance policy covers. The calculation is usually done by experts.

Despite the fact that there are expected price standard for various insurance policy covers, one of the easiest ways of getting into the market is to sell your insurance products a little bit below the industry average and that is exactly what we are going to do.

  • Payment Options

There is the need to have several payment options. At Mutual Trust Insurance PLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment with cash
  • Payment via mobile money platforms

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

When it comes to starting an insurance company, you should be aware that the cost is in the two fold; the cost of setting up the office structure (including branches) and of course your capital base / capitalization. In essence, the nature and size of the insurance company you are looking towards starting will determine the amount you are expected to raise.

As regard the cost of setting up the office structure, your concern should be to secure a good office facility in a busy business district; it can be expensive though, but that is one of the factors that will help you position your insurance company to attract the kind of customers you would want to do business with.

These are the key areas we will spend the bulk of our start – up capital on;

  • The Total Fee for incorporating the Business – $750.
  • The budget for insurance policies, permits and license – $10,000
  • The Amount needed to acquire a suitable Office facility in a business district in New York City with 6 months’ rent up – front (Re – Construction of the facility inclusive) – $50,000.
  • The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
  • The Cost of Launching our official Website – $600
  • Budget for paying at least 10 employees for 3 months and utility bills – $200,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Capital Base – 1 Million Dollars
  • Miscellaneous – $10,000

Going by the report from the research and feasibility studies conducted, we will need about 1.2 Million U.S. Dollars to set up a small scale but standard insurance company in the United States of America.

Generating Funding / Startup Capital for Mutual Trust Insurance PLC

Mutual Trust Insurance PLC is going to start as a private Limited Liability Company but with a plan in the nearest future to transform in a public limited liability company so as to enable us get listed in the New York Stock Exchange. In essence, the business will be financed by Dr. Wilcox Carrington, Mrs. Ruth Ferguson and other members of the partnership.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $700,000 (from every member of the partnership with the bulk of the money coming from the lead partners Dr. Wilcox Carrington and Mrs. Ruth Ferguson). We are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to sell a wide range of insurance products to both big and small clients, individual clients and corporate clients as well.

We know that if we continue to sell our insurance products and continue to collect premiums on a regular basis, there will be steady flow of income for the organization. Our key sustainability and expansion strategy is to ensure that we only hire competent employees, create a conducive working environment and employee benefits for our staff members.

In the nearest future, we will explore the options of either merging with other insurance company or acquire one or more insurance companies in order for us to increase our market share. We know that if we implement our business strategies, we will grow our insurance business beyond New York City, New York to other states in the U.S in record time.

Check List / Milestone

  • Business Name Availability Check:>Completed
  • Business Incorporation: Completed
  • Application for Insurance License: Completed (Collected)
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the start – up capital from the founders: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry: In Progress

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Insurance Agency Business Plan Sample

DEC.22, 2016

insurance agent business plans

Insurance Agency business plan for starting your own business

If you worry about how to start Insurance services, you must create a detailed Insurance agent business plan. It will not only guide you in the initial phases of your startup but will also help you later. Business plans for Insurance Agency are good instruments to assess the success of the business and track its progress. Insurance agencies require financial expertise and a highly accurate finance business plan . 

Since the insurance industry is classified as a due diligence service, you may be confused about how to start independent Insurance Agency. You can refer to this template set out for a firm called Lifelong Insurance for detailed guidance.

Executive Summary

Lifelong Insurance will be located in Texas. The business will provide life, health, travel, and vehicle insurance to its customers.  If you want to start this business but are confused about where to start, this Insurance Agency business plan template can act as your reference point.

2.1 The Business

As per this Insurance Agency business plan sample, Lifelong Insurance will be the newest and brightest independent Insurance Agency in Texas. It will be owned by Goerge and Martha Bell. They both have experience serving in the sector for 15 years. Lifelong Insurance was established in line with the following business continuity plan .

2.2 Management of Insurance Agency

The owners, Goerge, and Martha Bell are both Certified Financial Planners. They will hire certified and experienced employees to run the business. It is because matters related to insurance are of huge legal and financial importance and a lack of experience and knowledge can incur huge costs. In this business plan for Insurance company, we will provide a list of employees who will be hired to manage the operations of the agency. 

2.3 Customers of Insurance Agency

Irrespective of whether you are following an Insurance Agency business plan or thinking of starting a credit repair business , you need to know who your target audience is. Lifelong Insurance has the following customer groups as its target market:

  • Aspiring Young Families
  • Young Adults
  • Exurbanites
  • Local Businesses

2.4 Business Target

As per this sample business plan for Insurance Agency, the business target for Lifelong Insurance is to raise the bar in the insurance industry by providing excellence and utilizing the highest principles and standards in every aspect of the business. Lifelong Insurance wants to empower its clients, employees, and community while employing these practices.  

You may download this Insurance Agency business plan sample pdf from our official website.

Insurance Agency Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

George Bell and Martha Bell came up with this new insurance agent business plan after working on it for months. It was despite their combined 15 years of experience in the industry.

3.2 Why the Insurance Agency is being started

The Bells were always interested in the insurance niche. Their education and experience turned them into excellent financial analysts. They also acquired legal expertise over 15 years. Therefore, as soon as they could manage the resources, they decided to start their own business.

George and Martha deserve credit for coming up with a unique Insurance Agency business model that prioritizes convenience.

3.3 How the Insurance Agency will be started 

The insurance agency can be started by following these steps ..

Step1: Become a licensed insurance agent

You can get an insurance agent license in a matter of weeks or months, depending on the requirements in your state. Since George and Martha introduced this business plan of an insurance company after almost two decades of experience in this sector, they already had a license. 

Step2: Write your business plan

Your business plan outlines what you want your business to look like and how you plan to get there. The process of writing it should force you to answer complex questions, like what unique value you’ll offer your customers and how much money you’ll need to get started. You can get this Insurance Agency business plan template free download to get an overview of how to write a plan for your firm.

Step3: Choose a business structure

Your business structure determines how your business profits are taxed and how your personal and business assets are kept separate, among other things. There’s also an insurance-specific question you’ll need to explore and that relates to if you want your Insurance Agency to work with one specific insurer or with many different providers. 

Step4: Form relationships with insurance companies

If you’re an independent agent, you’ll need to apply to work with insurance companies who you would represent. In the later sections of this insurance company business plan pdf, we will explain how establishing long-term relations with insurance companies can help you get more sales.

Step5: Grow your client base

If you choose to start an independent agency, you may have to hustle for your first few clients. Start by attending networking events and advertising in your local market. 

Download this free insurance business plan template to help get a head start on writing a personalized business plan.

Insurance Agency Business Plan - Startup Cost

Services of Insurance Agency

Different insurance agents offer different types of insurance schemes. Insurance business proposal offered by Lifelong Insurance provides a wide range of services to cater to a wide range of clients. Some of those are mentioned below:

  • Life Insurance

We will offer life insurance to our clients by which we will pay a death benefit to the beneficiaries after the insurer’s death. The paid amount will be derived from the regular, premium payments.

In the market segmentation section of this life insurance business plan, we will explain who is expected to avail of this of our services.

  • Reinsurance 

We will offer reinsurance services whereby we will transfer portions of risk portfolios to other parties by some form of agreement. This will help in reducing the likelihood of paying a large obligation resulting from an insurance claim. Such transfers are a little risky to handle and require attention from the business plan insurance broker. 

  • Travel Insurance

The business plan for Lifelong Insurance also provides the service of travel insurance to its customers. Our travel insurance plans will cover medical emergencies, trip cancellation, trip interruption, delays, medical evacuation, and lost, damaged, or stolen luggage.

  • Vehicle Insurance

Additionally, this  Insurance Agency sample business plan also offers vehicle insurance for  cars ,  trucks ,  motorcycles , and other road vehicles. Its primary use will be to provide financial protection against physical damage or bodily injury resulting from  traffic collisions . 

It is recommended that you read multiple insurance business plan templates like these to decide what services you want to offer.

Marketing Analysis of Insurance Agency

Great work.

Had the pleasure of working with Alex on a business plan for a new venture. The end result looks very professional. His communication is always prompt and he was very patient with my detailed requests. I would definitely work with this company in the future.

You must understand the market thoroughly before you step into it. It will help you understand the level of competition, potential untapped markets, pricing trends, and changing consumer preferences. You may go over different Insurance Agency business plan examples to get an overview of the current market trends.

5.1 Market Trends

The market size of insurance brokers and agencies in the United States reached almost $182 billion in 2020 and was expected to further increase in 2021. Hence, this is the right time to work on your insurance company business model and introduce it in the market. You can reach out to a marketing plan Insurance Agency to help you understand the changing marketing trends.

5.2 Marketing Segmentation

Common characteristics of a market segment include interests, lifestyle, age, gender, etc. It is essential to identify them to determine your target market. Every <sample> sample business plan for insurance company identifies different customer groups. In this marketing plan for insurance company pdf, Lifelong Insurance Agency specifies the following as its potential customers:

Insurance Agency Business Plan - Marketing Segmentation

5.2.1 Aspiring Young Families

Young families have varying insurance needs. They need to avail themselves of life insurance policies, health insurance, and auto insurance. We will serve them in all these aspects. They will sign up for vehicle insurance as per this insurance sales business plan.

5.2.2 Young Adults 

Lifelong Insurance will target this group with its competitive auto insurance rates and insurance of technology gadgets such as smartphones and computers.  

5.2.3 Exurbanites

This target market will need help with life insurance and long-term care. This group is also expected to get their vehicles insured by us.

5.2.4 Local Businesses

Small businesses have a myriad of insurance needs. At Lifelong Insurance, our representatives will meet each business owner and individually determine their insurance needs.

5.3 Business Target

  • Capture 30% of the market share within 1.5 years of operations.
  • Maintain a CSAT score of more than 96 throughout the operational years.
  • Negotiate with local businesses to expand our client base.
  • Increase returns on interest by 15%.

5.4 Product Pricing

As per this business plan insurance company, Lifelong Insurance will keep its prices a bit higher than its competitors. It is because we have hired the most expert and competent employees. Moreover, we are providing several benefits as compared to our competitors.

Marketing Strategy of Insurance Agency 

No matter how better you are performing as compared to your competitors, you cannot manage to get more sales unless you advertise with compelling arguments. In your business plan, you must define a sales strategy by which you intend to reach out to more and more customers.

To get ideas, you can read the business plans for insurance agencies that are available to you. You can go through similar business plans such as a bookkeeping business plan to understand how an influencing yet unobtrusive sales strategy is developed.

6.1 Competitive Analysis

  • As per this business plan for an independent Insurance Agency , Lifelong Insurance will strive to be the best and quickest insurance services provider . 
  • Lifelong Insurance will go through clients’ requirements thoroughly before developing a customized insurance package for them.
  • As mentioned in this sample business plan for Insurance Agency, we will hire people who are the most qualified, expert, and experienced for the post.
  • We will build long-lasting relationships with our clients through constant communication. 

6.2 Sales Strategy

This insurance agent marketing plan template includes the following sales strategies:

  • Utilize social media platforms and online web presence.
  • Utilize customer ranking websites such as
  • Request referrals from satisfied customers.
  • Collaborate with local safety institutes.
  • Arrange seminars to spread awareness about insurance packages.

6.3 Sales Monthly

Insurance Agency Business Plan - Sales Monthly

6.4 Sales Yearly

Insurance Agency Business Plan - Sales Yearly

6.5 Sales Forecast

Insurance Agency Business Plan - Unit Sales

All the costs associated with human resources are accounted for in this business plan for an insurance agent.

7.1 Company Staff

Under this Insurance Agency business proposal, these positions will be hired for:

  • 5 Bookkeepers
  • 2 CFP Agents
  • 1 Admin Manager
  • 1 Customer Care Executive

7.2 Average Salary of Employees

Financial plan of insurance agency .

As per this business plan for Insurance Agency template, Lifelong Insurance’s idea is to increase the premium charges on its different services over time to have greater profit margins. This business target stems from the fact that a skilled workforce and a sustainable business cannot be established without monetary resources.

As per this business plan Insurance Agency, the Bells will take several initiatives to boost their sales. If you are entering this venture you must analyze the financial feasibility of your startup by drafting the expected cash flow diagrams, and calculating gross margins.

To see what you must include in your financial plan, you can refer to the Insurance Agency business plan samples available on our website. Moreover, you can also take help from the financial plan documented below.

8.1 Important Assumptions

8.2 break-even analysis.

Insurance Agency Business Plan - Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Insurance Agency Business Plan - Profit Monthly

8.3.2 Profit Yearly

Insurance Agency Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Insurance Agency Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Insurance Agency Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Insurance Agency Business Plan - Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios, tips on how to establish a successful insurance agency.

If you are taking a gander to initiate an insurance agency, it is necessary to do an intensive background research to get a good understanding of the insurance sector before getting your feet wet. For instance, before you start offering a particular policy, it is exigent to get to the ground and identify the desideratum of the target customers. It is also a requirement to have a strong business plan that you can employ to run and make decisions in the insurance agency. Check out the samples of insurance agency business plans posted online to know how to design yours.

Having a professional business tactics template will save you on time that you would have spent creating your plan of activities from scratch. If you fancy a customized plan, consider seeking professional insurance agency business plan writing services . As mentioned earlier, one of the bankroll remonstrances of scribbling a contrivance is the amount of time and research that is required. Luckily, there are many professional insurance writers, who operate offline as well as online who can help you write insurance agency business plan samples . The charge for this service might be high, but it is better to spend money on a quality service than scribble a mediocre contrivance that will spell doom for your firm.

insurance agency business plans

Results of a SWOT Analysis

Notictious Insurance Agency is focusing on the identification of the multifarious strengths and weaknesses that could promote the organization or lead to its downfall. As a result, we sort the ministrations of a crackerjack business-consulting organization that did a comprehensive SWOT assay. The results of this analysis will succor tract the concourse for success.

Our team was actively convoluted in the analysis and worked with the counsels to warrant that their recommendations were accurate and in line with the goals.

We take the results of the assay very seriously, and we are committed to making sure that we bring into playing the proposed organization recommendations to the letter.

For any business to succeed in the surpassingly vying and digitalized current business world, it needs to identify its core strengths. Business strength is something that sells to the target customers. Our insurance concourse’s core strength is its workforce, which is our insurance faction. Since our inception, we have engaged a team of experts who are committed and determined to warrant that customers get quality services. We have positioned our insurance organization to inveigle millions of prospects who need insurance agency business plans from the first-day operations. We have also invested in a modern application or software that allows us to streamline our insurance concourses and get in touch with our insurance prospects at any time of the day and without spending a fortune.

As a new insurance concourse in the nation, we will desideratum to generate an effective plan to penetrate the market and succeed in getting customers. We understand the insurance sector is very competitive, but we are sure that we have what it takes to tussle in the business with the other insurance concourses that offer similar policies that we plan to offer.


There are unlimited business scopes for our insurance concourse in the market today. We are prime to make sure that we take ascendancy of all business opportunities that come our way and this will greatly help to warrant that we start and uphold to conceive lucre for decades if not centuries.

A weak and unpredictable mercantile is one of the primary threats that could hogtie the surge of our insurance concourse and the insurance business at large. Every business faces its divvy of presage in spite of the verity that it might have a robust system of tackling the demurs. This is the main reason why institutions and the insurance concourses that we plan to rival in the market carries out risk assessment studies regularly to warrant that the concourse is conscious of the business changes in the market.

Another business fulmination that we are keen on responding to as we progress is the establishment of similar insurance agencies in New York. It is our hope that when that happens, we will have invested in business teams that will generate unique and unrivaled policies, which will keep customers streaming into the company.

Needless to say, the many realistic, implementable and winning business strategies that we have been capable to create and establish as credible ways of interacting with customers will surely give us a higher cutting-edge in the market. By providing quality insurance services to our chumps, we will be capable to expand and surge the business fast and warrant that it continues to reign supreme.

It is also importunate to point out that just like any other business or venture entity; the unstable financial markets are a significant threat. Similarly, economic changes and downturns, climate calamities, as well as government policies that do not favor the institutions are ostensible to affect our insurance provision services, but we are prime to handle them all and warrant that the concourse remains profitable.

Payment Options

By payment options, we are referring to the various channels that our customers will use to pay for premiums that they select. Notictious Insurance Agency takes pride in that we have a solid plan created by our finance department. This plan makes sure the prompt receipt of payments without compromising the safety of our clients.

Below are some of the deposit choices that our customers will have to apply to make payments to us on a monthly or yearly basis.

  • Deposit by via bank transfer
  • Deposit through online bank transfer
  • Deposit through check
  • Deposit through bank draft
  • Deposit with cash
  • Deposit through mobile cash platforms

Culmination of the settlement choices listed above will be through credible and reliable banking platforms as well as organization systems to eliminate any errors from occurring.

Advertising and Promotion Strategy

Although our insurance intermediary is different from the others on the earth, we do plan to make sure that we use media stations to advertise it. We are conscious of the fact that most people make a decision to apply the services of a particular insurance agency business plan given their referrals and reputation. Therefore, we will sweat on creating a good credibility and reputation score in the market to contend with the auxiliary insurance companies.

During the promotion of our insurance products, we intend to leverage in both computerized and print media. Our research has shown us that using this medium will save us hundreds of dollars that we can invest in other activities that will further promote the augmentation of the insurance institution.

Here is a list of the primary platforms that we are going to be using to create a brand acquaintanceship of our insurance company and promote the insurance products to our customers.

  • We will advertise our organization through countrywide television stations, gazettes, magazines, and AM-FM stations
  • We will have our organization TV program that will be discussing the policies that we provide
  • We also going to be actively involved in community-based programs
  • We will employ social media networks such as Twitter and Facebook to advertise our insurance products and organization
  • We will invest in quality billboards that will be installed around the city and in auxiliary areas of the nation that we intend to open the organization offices
  • We will consummate road shows from time to time to showcase our insurance policies to our customers
  • We will disseminate dodgers and pamphlets to our customers on a monthly basis
  • We will expedite rudimentary letters to Diaspora institutions, consulates, and conglomerates to warrant that they too are cognizant of our insurance policies and hopefully they will take up a few
  • We will invest in branded vehicles and also brand the commercial buses
  • We will encourage our loyal customers to market our products to their peers, friends, and colleagues by offering incentives such as discounts.
  • What is the easiest way to complete my insurance business plan?

The easiest way to come up with a business plan is to take one step at a time. Start with developing an executive summary, get an idea of what your company looks like, and take down the ways you can execute your idea. You can hire professional services to get a business plan for a financial advisor . If you know the field, you may also write your business plan after going through a sample business plan template for an Insurance Agency.

  • Where can i download an insurance business plan pdf?  

There are multiple websites where you can find free PDFs for business plans. Whether you are looking for a  holding company business plan or an Insurance Agency sample business plan, you can find the samples by doing a little resear

Download Insurance Agency Business Plan Sample in pdf

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Insurance Agency Business Plan

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Quaestor Services

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Quaestor Services is in the process of being formed as a sole proprietorship owned and operated by Sheila Claflin. This plan is written as a guide for financing, start-up and management of this new business and will also serve as the basis for measurement. The following is a summary of the main points of this plan.

  • The objectives of Quaestor are to generate a profit, grow at a challenging and manageable rate, and to be a good citizen in the community.
  • The mission of Quaestor is to provide products and services with high quality, protection and value pricing.
  • The keys to success for Quaestor are variety of business services and products, personal contact, timely and accurate service, development of one-to-one relationships, and a reputation of honesty and integrity. 
  • The primary products offered will be from Whelnoan Insurance Company, and the added value to small businesses will be the accounting and financial services offered.
  • The local market for this business is wide open. Whelnoan Insurance Company has captured 23% of the market share and is considered the second largest insurance company in Plainstate. 
  • In the first year of operation, a customer base is being established. Over 85% of the new and established insurance business will renew each year creating compounding growth in sales of over 200% with limited increase in operational expense.

In conclusion, as shown in the highlights chart below, this plan projects rapid growth over the next three years with a profit forecasted in the second year of operation and continuing into future years of operation. Implementing this plan, will ensure that Quaestor Services becomes a profitable venture.

Insurance agency business plan, executive summary chart image

1.1 Objectives

The main objectives of Quaestor Services are:

  • Profit – to create enough prosperity for the owner and employees to have a secure and comfortable lifestyle.
  • Growth – to grow the business at a rate that is both challenging and manageable.
  • Citizenship – to be a social asset to the community and contribute to others who are less fortunate.

1.2 Mission

Quaestor Services is dedicated to providing insurance products and business services that provide high quality, protection, and value pricing. We wish to establish a successful partnership with our clients that respects their interests and goals.

Success will be measured by our clients choosing us because of their belief in our ability to meet or exceed their expectations of price, service, and expertise.  

1.3 Keys to Success

The keys to the success for Quaestor Services are:

  • A wide variety of business services and insurance products that are affordable, available and understandable.
  • Personal contact and service that meets or exceeds the expectations of our clients.
  • Services and products that are delivered with accuracy and timeliness.
  • Relationships with our clients that fosters renewal business.
  • A reputation in the community for it’s honesty and integrity.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

Quaestor Services is a start-up company located in Smileyville, Plainstate, a suburb of Niceburg, providing both accounting and full-charge bookkeeping services and insurance and retirement products to individuals, families, and small businesses.

2.1 Company Ownership

Quaestor Services  is a sole proprietorship, owned by Sheila Claflin. Born and raised in the Pacific Northwest with Native American Indian heritage, Sheila was relocated to Plainstate in 1994 by her employer. 

She has over 30 years of experience in Finance, Accounting, Management, and Consulting and recently received her Plainstate insurance agent license for Life, Health, Property and Casualty insurance.

In the near future she intends to receive her Series 6 Securities license and take H & R Block Income Tax Course.

2.2 Start-up Summary

Quaestor Services start-up costs include:

  • Marketing/Lead Services: marketing and lead generation services to establish client base
  • Website Development: professionally developed business website on the Internet
  • Logo: professionally developed business logo for business recognition in the market place
  • Stationary: the printing of letterhead and envelopes with the company logo
  • Business Cards: the printing of business cards with company logo
  • Brochures: development and printing of brochures for marketing the business
  • Cell Phone and Pager: business cell phone and pager for communication with the clients at all times
  • Office Supplies: supplies necessary to set up an office
  • Training/Licensing: costs associated with the three state licenses required for insurance business
  • Business Associations: membership into several business associations such as Chamber of Commerce

Quaestor Services long-term assets include:

  • Laptop Computer: used in meetings with clients for printing insurance quotes and on-line applications
  • PC Computer/Monitor: used in office for accounting services and record of business transactions
  • Printer/Copier/Scanner: used in office for business transactions       

Start-up costs come to $30,000 of which $15,000 is being financed by a direct owner investment. In the first six months of operation $15,000 financing is being sought after for the start-up costs. In mid-Year 1 an additional $10,000 in financing will be required to ensure business operations, marketing and stability during the first year of operation.

Insurance agency business plan, company summary chart image

Quaestor Services provides accounting and full-charge bookkeeping services, insurance and retirement products to individuals, families, and small businesses.

As a representative of Whelnoan Insurance Company the following product and services are offered:

  • Personal Lines – auto, renters, home, motorcycle, boat/yacht, snowmobile, jet ski
  • Commercial Lines – businesses, workers compensation, surety bonds
  • Life & Disability Products – term, whole, universal and variable life, long-term care, disability
  • Retirement Products – fixed, equity indexed, and variable annuities, mutual funds
  • Retirement Plans – IRA, Roth IRA, pension plans, SEP plans, SIMPLE plans
  • Life Planning Concepts – mortgage protector, business continuation, buy/sell agreements
  • Value Added Products

In the future we intend to offer the following independent products and services:

  • Health Insurance
  • Pet Care Insurance

Accounting and Full-Charge Bookkeeping Services are available at either the client’s location or in our offices on a regular, permanent basis with a schedule that accommodates the client’s needs. Rates are based on the needs of the business. These services include:

  • Accounts Payable
  • Accounts Receivable
  • Credit/Collection
  • Reconciliations
  • General Ledger Maintenance
  • Financial Statements

In the future we intend to offer the following accounting service:

  • Income Tax Preparation

Market Analysis Summary how to do a market analysis for your business plan.">

The market area for Quaestor Services will be focused on three counties, Pleasant, Niceburg and Contented, in Plainstate. These counties are experiencing a combined average growth in population over the 2000 census of 6.45%.

As of 2004, the Whelnoan Insurance Company is the second largest insurance company in Plainstate with 23% of the market share. The overall market for Quaestor is wide open. This business plan has identified over 1.3 million  individuals and business as potential clients in the market area.

4.1 Market Segmentation

Quaestor Services has targeted the following market segments:

The available market share of 77% represents the market that Whelnoan Insurance has not captured at this time. Although,the entire state is an available marketing area, the tri-county area will be the focus marketing area at this time. The total population of the tri-county area available for marketing is 29% of the total available population in Plainstate. 

The first and most important market segment is population broken down by age groups. This can be used for determining the market for personal lines of insurance such as auto and various recreational vehicles, life and life planning products.

Note that the population of 15 to 24 year olds has been separated from the available population as a market segment in itself for determining the possibility of high risk auto insurance policies.

The second market segment is housing units broken down by owner occupied and renters. This can be used for determining the market for personal lines of insurance such as home, townhouses, condominium, renters and mortgage protection.

The third market segment is small businesses with less than 20 employees. This can be used for determining the market for accounting and bookkeeping services and commercial lines of insurance including property and casualty, retirement and workers compensation.

Insurance agency business plan, market analysis summary chart image

Strategy and Implementation Summary

  • Emphasize value instead of price . Quaestor is dedicated to working closely with each client and educating them on the importance of value over price.
  • Build long term relationships . Quaestor is dedicated to establishing a successful partnership with each client, respecting their interests and goals by cultivating a long term relationship to enhance client retention.
  • Focus on increasing market share . Quaestor will focus on personal and business clients that have been identified in the targeted markets.

5.1 Competitive Edge

Quaestor’s competitive edge is our positioning as strategic ally with our clients, who are clients more than customers. By building a business based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they need it.

5.2 Marketing Strategy

The marketing strategy is the core of Quaestor’s main strategy:

  • Develop specific programs for each target market segment

5.3 Sales Strategy

Quaestor’s sales strategy will be based on systematic person-to-person contacts through referrals, direct mail, telemarketing and the Internet. A list of potential prospects has already been compiled and will serve as a launching pad for marketing the products and services.

5.3.1 Sales Forecast

The important elements of the sales forecasts are summarized on three line items, Accounting Services, Insurance Sales, and Miscellaneous Revenue. The summary of the initial sales forecast indicates a first year revenue of $39,500 increasing to over $108,310 by the end of the second year, then $122,110 by the end of the third year. It should be noted that although sales triple in the second year, all revenue has been forecasted very conservatively for the three year forecast. Forecasted sales increases are overstated by the Whelnoan Insurance subsidies or Miscellaneous sales. Actual sales growth for the second year is 160% due to adding a producer for continued sales growth and exponential growth of insurance renewals. The third year of sales reflects an actual growth of 76% due mostly to the increase in insurance renewals. Each element will be discussed separately and in its entirety below: 

Accounting Services – it has been determined in order to be conservative for this forecast, that the average accounting client requires services at approximately $500 a month, or 25 hours (x) $20 hour. Obviously this can vary depending on the needs of the client, but for forecasting purposes this is the standard used in determining the monthly revenue. In addition, it is assumed that once our services are sold to the accounting client, they will continue to generate a monthly revenue until replaced. Income tax preparation which will yield a substantial increase in revenue as a future service, but is not considered in this forecast. The illustration below, shows two clients are forecasted for the second year and three clients are forecasted for the third year. Accounting clients can sometimes require substantial time at first, until the clients’ needs are defined and set up. Limited clients are being forecasted due to the time required growing the client base for insurance.

Insurance Sales – are comprised of two categories, 1) insurance-new sales and 2) insurance-renewals. The insurance products used to forecast new sales are, auto and high risk auto (renews every six months), property structures such as homes, townhouses, condominiums, renters and landlord insurance, commercial, life and all other types of recreation vehicle insurance, (renews annually).  It should be noted that in order to be conservative, not all insurance products that are offered were forecast, such as health, retirement products and plans. Whelnoan Insurance Company District Office supplied the necessary documentation needed for the formulation of the insurance sales and renewals. Sales are based on actual results (averaged) created for the first three years of a new Whelnoan Insurance agency. All numbers have been reviewed and approved by them before the forecast was entered into this business plan.  

What makes insurance sales different from other sales are the renewals. In most cases, without an increase in monthly production, the monthly income will almost double due to renewals. It has been determined by Whelnoan Insurance that customer loyalty in the first year is 87%, second year is 85% and third year is 89%. Other than auto, which renews every six months, all other insurance products renew on an annual basis. Because of renewals, it is possible to double sales revenue without increasing production costs. The following is the monthly forecast:

Miscellaneous – the amounts forecasted in Miscellaneous are Whelnoan Insurance subsidies offered at pivotal times throughout the first two years to financially support the insurance agency during the development stage. The subsidies are broken down into four categories, and require that milestone production levels be achieved before the subsidy is made available, 1) commissions on new sales 2) marketing leads, 3) office space, and 4) staff. At the end of two full years of operations as a career agent, subsidies are no longer available. The total subsidies forecasted in the first year is $13,875, in the second year $41,700, and $4,800 in third year, for a total of $60,375. 

Insurance agency business plan, strategy and implementation summary chart image

5.4 Milestones

The table below lists important program milestones, with dates and managers in charge. The milestone schedule indicates Quaestor’s emphasis on planning for implementation and the measurement of these activities. In addition, each milestone is important to achieving the financial forecast used in this business plan. The following is a brief description of each milestone:

  • 12/01/04-01/31/05-Business Financing – obtain the very important start-up financing necessary for the first year of operation.
  • 01/01/05-03/31/05-Career Agent – the Whelnoan Career Agent Program starts when a new agent has completed their training, received the required insurance licenses and in the last 90 days sold 30 policies including three life insurance policies. 
  • 01/01/05-02/28/05-Accounting Services (1st Client) – obtain the first monthly client for accounting services.
  • 03/01/05-06/30/05-Accounting Services (2nd Client) – obtain the second monthly client for accounting services.
  • 04/01/05-09/30/05 -Career Agent (6 months)  – the first milestone in the Whelnoan Career Agent Program. A Career Agent receives $1,500/monthly for the first six months. At the end of six months, a Career Agent’s production is checked for the number of policies issued-and-paid to determine subsidy level. Required level per financial forecast is 80 property and casualty policies and eight life policies which allows a subsidy match of commission dollar for dollar on new business commissions up to $2,000/month and a lead subsidy of $100/month.
  • 05/01/05-06/30/05-Business Financing – obtain additional financing to ensure business operations, marketing and stability during the first year of operation.
  • 11/01/05-12/31/05-Hire Agent – hire and train new agent for a start date of 1/01/06.
  • 04/01/05-03/31/06 -Career Agent (12 months) – the second milestone in the Whelnoan Career Agent Program. At the end of twelve months, a Career Agent’s production is checked for the number of policies issued-and-paid to determine a new subsidy level. Required level per financial forecast is 180 property and casualty policies and 18 life policies which allows an additional subsidy for staff at $1,500/month and office space of $750/month.

Whelnoan Insurance Subsidies are available for 24 months only or 4/1/05-03/31/07

  • 04/01/05-03/31/07 -Run to Daylight (24 months) – the third milestone in the Whelnoan Career Agent Program. At the end of twenty-four months, a Career Agent’s production is checked for the number of policies in force to determine waiver of one third of the subsidies paid to the agent. In order to be eligible, an agent must have 400 property and casualty policies and 40 life policies in force.
  • 04/01/05-03/31/08 -Run to Daylight (36 months) – the fourth milestone in the Whelnoan Career Agent Program. At the end of thirty-six months, a Career Agent’s production is checked for the number of policies in force to determine waiver of second third of the subsidies paid to the agent. In order to be eligible, an agent must have 540 property and casualty policies and 54 life policies in force.
  • 04/01/05-03/31/09 -Run to Daylight (48 months) – the fifth milestone in the Whelnoan Career Agent Program. At the end of forty-eight months, a Career Agent’s production is checked for the number of policies in force to determine waiver of last third of the subsidies paid to the agent. In order to be eligible, an agent must have 660 property and casualty policies and 66 life policies in force.

Insurance agency business plan, strategy and implementation summary chart image

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The management philosophy of Quaestor Services is based on respect for every client, and individual responsibility. For the first year the only employee will be the owner, Sheila Claflin. In January of 2006 the financial forecast supports the hiring of an insurance agent to help increase the growth of the business. 

Quaestor’s intention is to hire only those who demonstrate the qualities necessary for working in a professional environment, and the willingness to move forward in continuing education. We will be hiring the ultimate “people persons” to provide world class service.

6.1 Personnel Plan

The Personnel Plan reflects the staffing levels required to create, and establish the customer base needed to achieve the revenues projected and reach profitability.

All insurance sales and business service personnel salaries are considered a direct cost of sales, and are listed as such in the financials .

Financial Plan investor-ready personnel plan .">

Quaestor Services’ financial plan is based on obtaining a loan by January of 2005 of $15,000 to cover the start-up expenses. In July of 2005 an additional $10,000 in financing will be required to ensure business operations, marketing and stability during the first year of operation. For financial forecasting the loan is a seven year loan at an interest rate of 9.09%. Quaestor will achieve profitability in the second year.

The fiscal year is a calendar year, January through December.

7.1 Start-up Funding

Start-up costs come to $30,000 of which $15,000 is being financed by a direct owner investment. Before the first six months of operation, $15,000 financing is being sought for the start-up costs. In July of 2005 an additional $10,000 in financing will be required to ensure business operations, marketing and stability during the first year of operation.

7.2 Important Assumptions

The key underlying assumptions of Quaestor financial plan shown in the following general assumption table are:

  • We assume access to financing of $30,000 to support our financial plan.
  • We assume our financial progress is based on a very conservative sales forecast supported by data received and reviewed by Whelnoan Insurance.
  • We assume that all sales milestones have been achieved.

7.3 Break-even Analysis

The following table and chart show our Break-even Analysis. The first year due to start-up costs and expenses will not be included in the break-even analysis.

Insurance agency business plan, financial plan chart image

7.4 Projected Profit and Loss

Based on the realistic sales projections and efficient cost control measures in place, Quaestor will achieve profitability in the second year of operation. Monthly profitability is first achieved in November 2005, but due to developing a customer base, the first months of operations reflect a loss.

In the second year of operation, sales increased $68,810 or 174%, resulting in a net profit. Significant changes in the second year are the hiring of an agent in January 2006, resulting in additional costs to the direct cost of sales of $34,500 and the set-up of an office outside of the owner’s home and Whelnoan Insurance District 15 office, resulting in additional operating costs of $7,120.

In the third year of operation, sales increased $13,800 or 13%. This yields an increase on the bottom line. In the third year of operations, Whelnoan Insurance subsidies are no longer available, resulting in a decrease in Miscellaneous revenue of $36,800 over the prior year. There are no significant changes in the third year of operations.

Insurance agency business plan, financial plan chart image

7.5 Projected Cash Flow

Due the fact that Quaestor is a new start-up company, the cash flow for FY2005 is somewhat exaggerated by the instant influx of new capital. Subsequent years however show a healthy growth in cash flow, mainly due to the 84-month repayment of the start-up loan and increased sales.

Insurance agency business plan, financial plan chart image

7.6 Projected Balance Sheet

The table below presents the balance sheet for Quaestor Services. This table reflects a positive cash position throughout the period of this financial plan. The negative net worth is created in the first year due to the start-up costs showing as a negative retained earnings. As the balance sheet shows, Quaestor will not have any difficulty meeting their debt obligations as long as the conservative revenue projections are met.

7.7 Business Ratios

The table below presents common business ratios as a reference. Industry Profile comparisons are for Standard Industrial Classification code 6411.0000, Insurance Agents, Brokers and Service as the majority of our revenue comes from insurance sales. However, since the combined business of accounting/bookkeeping services and insurance sales does not fall underneath any predefined Industry dataset, the Industry ratios are not wholly accurate nor representative for Quaestor Services.

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If you’re planning on opening up your small business , then you should know just how important it is that you know exactly what you’re supposed to be doing. This is especially true if you plan on opening up an insurance business where there are a ton of different policies and procedures that you will need to think of. You can also like Insurance Plan plan templates .

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How to Create an Insurance Business Plan

1. know what your insurance business’s vision and mission is, 2. know what kind of insurance your business should be providing.

  • Home-based businesses
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  • Business interruption insurance
  • Professional liability insurance
  • Property insurance
  • Workers’ compensation insurance

3. Know How Much It’s Going to Take to Start Your Insurance Business

Insurance business plan guide.

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4. Details Regarding Availing of the Insurance and Payment

5. share your marketing strategies, 6. come up with the executive summary, more in plan templates, insurance business roll up banner template, insurance company business flyer template, life insurance business roll up banner template, insurance business media kit template.

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A comprehensive guide to small business insurance: Here’s how to safeguard your company

insurance business plan examples

Starting your own business requires a significant investment of both time and money. Millions of people continue to step up to the challenge with 33 million small businesses active in the U.S. as of 2023. However, without a proper business insurance plan in place, you risk losing everything you worked so hard to build. 

According to a survey released by Next Insurance , 90% of business owners weren’t sure if they had adequate coverage. Worse, 29% had no business insurance coverage at all, leaving their business and investments vulnerable to natural disasters, theft or lawsuits.

Small business insurance provides critical protection for your business, but there are several different types of coverage. Understanding the options available and what to expect in terms of cost can help you find the right coverage for your business (and your budget).  

7 common types of small business insurance

A customer visits your store and slips and breaks his arm while browsing the store aisles. 

A fire breaks out and spreads to your warehouse, destroying your inventory. 

Or a thief breaks into the office and steals your laptop. 

Whatever the case may be, there are many unexpected and horrifying scenarios that can threaten your business. 

Like your personal car or homeowners insurance policy, small business insurance acts as a safety net for your business, protecting your business property and assets against common disasters or accidents. 

Whether you’re the sole employee of your own company or you have dozens of workers, your small business likely needs some form of protection. What kind of insurance your business needs depends on the type of work you do, the size of your operation and your location. These are some of the most common business insurance options:

Business owners policies (BOPs)

A BOP is actually an insurance package that combines several forms of coverage together, making it a simple option for small business owners. BOPs usually include general liability, property insurance and business interruption insurance. 

BOPs are often more cost-effective than purchasing each type of coverage separately, and you can customize your BOP with optional add-ons, such as cyber risk insurance or commercial auto coverage . 

General liability

General liability insurance protects you against financial losses that may result from bodily injuries or property damage that occur due to your business. For example, if a client is injured on your business premises, general liability coverage would help cover your legal bills, the medical bills of the affected person and any damages resulting from a lawsuit. 

Product liability

If you produce or sell products, product liability coverage protects you against losses that result from products that you make, distribute or sell. For example, if a customer needs medical attention after getting hurt by a product you manufactured, product liability insurance would help you with the legal and medical expenses. 

Professional liability 

Professional liability insurance covers your legal expenses and damages related to issues that result from your professional negligence or mistakes. 

Commercial property

If your business property, equipment or inventory is damaged by a storm, fire or theft, commercial property insurance will reimburse you for your losses. 

Home-based business

According to the Small Business Administration , more than half of all small businesses are home-based. If you run your business from your home, you’ll need separate coverage from your personal homeowners or renters insurance policy . 

Home-based business insurance provides added protection for your business equipment and supplies, as well as protection against liability issues that aren’t covered by your personal policies. 

Workers’ compensation

If you have employees, you’re usually required to have workers’ compensation insurance. Workers’ compensation pays for your employees’ medical care and a portion of their wages if they’re injured or become ill while working. 

Other types of coverage

Beyond the seven main types of small business insurance, there are many other types of coverage. If your company works in particular industries or has specialized needs, you may need additional insurance. Some common add-ons include: 

  • Business interruption: If your business were forced to close due to a covered reason, such as storm damage, business interruption coverage will help cover your lost income. 
  • Commercial auto: If you have vehicles that you use for your business, including delivery trucks, you’ll need a separate commercial auto policy. 
  • Cyber liability: For businesses that sell or store customer information online, cyber liability insurance is a must. If your information — or your customers’ details — are compromised, cyber insurance covers the costs of system recovery efforts, notification expenses, fines and identity theft protection for your affected customers. 

How to purchase small business insurance 

To purchase small business insurance, follow these steps: 

  • Think about what coverage you need: Consider what kinds of insurance you need. For example, if you have company vehicles, you’ll likely need commercial auto coverage in addition to general liability and professional liability policies. And if your business operates in areas that are prone to natural disasters, such as floods or earthquakes, you may need separate commercial policies for those issues too. 
  • Shop around: Prices can vary significantly by insurer. Many insurers allow you to request quotes for small business insurance online; enter information about your company’s age, revenue, industry and employees, and the insurer will give you an estimate for your desired coverage. 
  • Contact an agent or broker: Once you know what kind of insurance you need, you can reach out to commercial insurance brokers or company agents to get exact pricing details and purchase a policy. 

According to Mark Friedlander, director of corporate communications with the Insurance Information Institute , a broker can be a valuable resource as you begin the process. 

“A qualified broker can help a business owner collect all the information they will need to apply for a policy, and help them comparison shop among several options and quotes,” he said. “Before hiring [a broker], we recommend reviewing the broker’s background and experience as well as the services provided and any fees charged.”

The National Association of Insurance Commissioners has a tool you can use to find insurance agents and brokers in your area. 

Small business insurance FAQs  

Do i need small business insurance if i’m just starting out.

Many people put off purchasing coverage because of the expense, but according to Chris Rhodes, chief insurance officer of NEXT Insurance, that mindset could be a costly mistake. 

“Purchasing insurance should be one of, if not the first, things on your checklist as a new business owner,” he said. “Regardless of revenue or investment level, having insurance is crucial for protecting your future livelihood.”

At a minimum, simple BOP coverage or other basic forms of coverage are a good starting point. 

“As a rule of thumb, small business owners should purchase general liability or professional liability coverage as a first line of defense,” Rhodes said. 

How much does small business insurance cost?

The cost of small business insurance depends on several factors, including your company’s location, size and industry. BOP coverage, which bundles common insurance types onto one simple policy, typically costs between $40 and $170 per month.

What factors affect small business insurance costs?

Several factors affect cost, including: 

  • Service or product provided: Certain industries or business types, such as those in construction or transportation, are more likely to be involved in accidents, so premiums tend to be more expensive to offset the higher risk. 
  • Location: If you live in an area with a high cost of living or with a higher-than-average crime rate, your premiums will typically be higher. 
  • Size: If you have employees, your premiums will be much higher than that of a business owner who is a solopreneur. The larger the company, the more expensive your premiums will be. 

Does my state require business insurance?

If you have employees, federal law requires you to have workers’ compensation, unemployment and disability insurance. But in some states, certain professions have additional insurance requirements. 

For example, in Colorado, physicians are required to have malpractice insurance. In Oregon, 

lawyers must maintain malpractice insurance with the state Professional Liability Fund. 

Visit your state professional association or regulatory commission to find out what coverage you’ll need. 

Do freelancers need business insurance?

Freelancers can benefit from business insurance, even if they don’t work in-person with customers. Basic coverage, including professional liability coverage, can protect against issues like lawsuits over mistakes or errors. 

The takeaway  

To ensure your business isn’t stalled or disrupted by weather, theft, accidents or lawsuits, small business insurance is a crucial purchase. As you begin shopping for insurance, request quotes from leading small business insurance companies . 

“As a general rule,” Friedlander said, “small business owners should get business insurance quotes from at least three different companies.”

Shopping around will help you find the best coverage at the lowest rate.

EDITORIAL DISCLOSURE : The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends ™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.

Guide to small business insurance

The 10 best insurance companies for small businesses, 5 best small business insurance companies in california of 2024, 5 best small business insurance companies in new jersey of 2024, a comprehensive guide to small business insurance: here's how to safeguard your company, 5 best small business insurance companies in texas of 2024.


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