Insurance Agency

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Keystone Independent Insurance Agency is an independent insurance agency in Pennsylvania. We help individuals and small businesses compare coverage from several insurance carriers, choose a policy that fits their needs and budget, and keep that coverage current at renewal. We sell personal lines such as home and auto, and commercial lines for small businesses.

Why this fits. Insurance is something almost every household and business needs, and most buy it with little help. An independent agent can compare several carriers rather than selling one company's products, and a trusted local agent keeps clients for years. Agencies earn commission when a policy is written and again each time it renews, so income grows steadily as the book of business grows.

Here is what our numbers show. In Year 1 we plan about 150 new policies written at about $420 average first-year commission each and about 100 renewals at about $280 average commission each. That brings in sales of $91,000, growing to $364,001 by Year 5. We expect a profit of about $6,400 in Year 1, a profit of about $1,000 in Year 2, a profit of about $47,000 in Year 3 and a profit of about $181,400 by Year 5. The owner's pay, software, licensing and insurance, and marketing are our largest costs, and the plan counts all of them.

We need $31,000 in total. Of that, $11,000 is startup costs (computers and office furniture, licensing and carrier appointments, a website, legal review, an office setup and a small cushion), and the rest is cash for the first months. I am putting in $15,000 of my own savings and asking for a $16,000 SBA microloan.

I am Daniel Brandt, the owner and principal agent. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Keystone Independent Insurance Agency will be a limited liability company (LLC) in Pennsylvania, owned by Daniel Brandt. We will start from a small leased office or a home office and add a storefront as the business grows.

What we believe. Insurance should be clear, fair and fit the person buying it, and the agent should be there when a claim comes.

What we offer:
- Personal lines: home, auto, renters and umbrella coverage.
- Commercial lines for small businesses.
- A comparison of coverage and price from several carriers.
- A yearly review at renewal.
- Help with questions and claims.

What we promise and do not. We explain coverage in plain words, recommend what fits and never pressure a client to buy more than they need. We do not promise the lowest price, because price and coverage depend on the client's situation and the carriers' rules. We hold the state license, follow every carrier and state rule, carry errors and omissions insurance and protect client information. We confirm every licensing and appointment requirement with the state insurance department before we start.

Where things stand today. The plan, price comparison process and budget are written. The next steps are the license, the carrier agreements and the first referral partners.

Problem & Opportunity

Most people buy insurance in a hurry, often online or from the first agent they find. They may not know what a policy covers or what it excludes until they file a claim. Small business owners face the same problem with higher stakes.

Direct insurers do not compare competitors, and captive agents sell one company's products. Clients who want to compare have to do the work themselves.

An independent agent who compares carriers, explains coverage and stays in touch helps clients make better choices.

Products & Services

Keystone Independent Insurance Agency will be the trusted local agent who compares options and explains them.

What makes us different:
1. Several carriers. We compare coverage and price across companies.
2. Plain language. We explain what is covered and what is not.
3. A yearly review. We check coverage at renewal and shop again when needed.
4. Local service. A real person who answers the phone and helps with claims.
5. No pressure. We recommend what fits and no more.
6. Honest limits. We tell clients when another company or product is better.

Why clients stay. They feel looked after and know who to call.

Market Analysis

Who we serve:
- Households with home, auto and renters coverage.
- Small businesses, contractors and landlords.
- New homeowners and drivers who need coverage quickly.
- Clients referred by real estate agents, lenders and car dealers.

How we sized the market. Our service area is our home county and the nearby counties. We are not counting on a share of every household. Year 1 plans about 150 new policies, which is about three a week, a small share of the policies written in our area. Replace this estimate with your own count of households, homes sold and small businesses near you.

Competitive Landscape

What clients can do today:

1. Direct online insurers. Fast and often cheaper, but no personal help and no comparison.
2. Captive agents. Local and personal, but they sell one company's products.
3. Other independent agencies. Some are strong, but many are large or far away.
4. Banks and credit unions that sell insurance. Convenient, but limited choices.
5. Online comparison sites. Helpful, but no advice or service.

Where we fit. Keystone offers comparison, advice and service in one place. We will not try to be the cheapest. We will be the agent clients trust.

Marketing & Sales Strategy

How clients will find us.

Before opening:
- Meet at least 20 real estate agents, lenders and car dealers. We follow all rules on referral payments and never pay for referrals where the law does not allow it.
- Build a website with services, a quote request form and plain explanations.
- Join the local chamber of commerce and business groups.
- Meet small business owners and landlords.

After opening:
- A free coverage review for every new client.
- A Google Business Profile and honest reviews.
- A reminder before every renewal and a call to review coverage.
- A referral thank-you for clients who send a friend.
- Short guides on topics such as renters coverage and small business risk.

What we will measure. Where each client came from, how many quotes become policies and how many policies renew.

Operations Plan

How the agency will run.

Quoting. A client calls or fills out a form, we gather the facts, request quotes from several carriers and explain the options in plain words.

Binding and service. Once the client chooses, we place the policy, deliver the documents and set a reminder for the renewal. We help with changes and claims.

Staffing in Year 1. Daniel handles quotes, service and sales. A licensed agent joins in Year 2. Pay for each role is listed at the end of this plan.

Software. An agency management system keeps client records, policies, renewals and notes and sends reminders.

Compliance and privacy. We follow the state's licensing, advertising and privacy rules, keep client information secure and complete the continuing education the state requires. We carry errors and omissions insurance.

Records. Policy files and notes are kept for the period the state requires.

Management & Organization

The people who will run Keystone Independent Insurance Agency.

Daniel Brandt, owner and principal agent. He holds the state insurance license, meets every client, compares coverage, manages carrier relationships and runs the agency. (Replace this paragraph with your own background.)

Licensed agent (from Year 2). Holds the state license and carrier appointments, writes policies and services accounts under the agency's standards. Every agent completes the continuing education the state requires.

Outside advisors. An attorney who reviews the carrier agreements and the privacy policy, an errors and omissions insurance broker, an accountant and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: owner / Principal Agent $60,000; licensed Agent $48,000. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (3 months ahead): complete the state licensing and exams, sign agreements with the first carriers, set up the agency software and phones, build the website and meet at least 20 local real estate agents, lenders and car dealers.
- Year 1: about 150 new policies and 100 renewals; $91,000 in sales and a profit of about $6,400.
- Year 2: about 180 new policies and 191 renewals with a licensed agent joining; $132,948 in sales and a profit of about $1,000.
- Year 3: about 227 new policies and 306 renewals as the book of business grows; $192,124 in sales and a profit of about $47,000.
- Year 4: about 286 new policies and 450 renewals; $268,974 in sales and a profit of about $107,100.
- Year 5: about 352 new policies and 627 renewals and a strong base of repeat clients; $364,001 in sales and a profit of about $181,400.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: quotes given, new policies written, renewals retained, referrals by source, complaints, reviews and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $31,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $11,000, listed item by item in the Startup Costs section: $2,500 for computers, printer and phones, $1,500 for desks, chairs and filing, $1,500 for licensing, exams and carrier appointment fees, $2,000 for website and opening marketing, $1,200 for LLC filing and contract review by an attorney, $1,500 for office setup: phone system and software setup, $800 for contingency.
- The cash the business uses before it breaks even, about $0. Sales cover the daily costs once the doors open, so the cash we need up front goes mostly to startup costs.
- A cash cushion of about $20,000: three months of Year 1 operating costs.
- Together, the cash used before break even and the cushion come to about $20,000, and the three pieces add up to about $31,000, rounded up to the nearest $500: $31,000.
We are raising $31,000 in all, which matches the calculator. With this funding, the lowest year-end cash balance is about $24,500, at the end of Year 2.

Where the money comes from:
- My own money: $15,000.
- SBA microloan: $16,000.

Kind of funding we are looking for. An SBA microloan from a nonprofit lender that finances very small businesses, backed by my own savings.

How we will pay it back. We expect a profit of about $6,400 in Year 1, a profit of about $1,000 in Year 2, a profit of about $47,000 in Year 3, a profit of about $107,100 in Year 4 and a profit of about $181,400 in Year 5. With this funding, the business has money in the bank at the end of every year of the plan. Our loan is the SBA microloan at 13% over 6 years, $321 a month. That payment is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: my personal guarantee.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with personal lines through one or two carriers, work from a home office and wait on the licensed agent, which lowers the startup costs and the loan.
- Phase 2: once the first policies renew, add commercial lines, a licensed agent and more carriers and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume and a personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Your state insurance license and exam results.
- Your carrier appointment agreements.
- Your errors and omissions insurance quote.
- Your privacy policy and client agreement.
- Letters of interest from real estate agents, lenders and car dealers.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- New Business Commissions: about $420 in Year 1, rising to $473; about $0 in direct costs, rising to $0; about 150 in Year 1, growing to 352.
- Renewal Commissions: about $280 in Year 1, rising to $315; about $0 in direct costs, rising to $0; about 100 in Year 1, growing to 627.
- A new policy commission is the average first-year commission on a new policy at about $420, and a renewal commission is the average commission on a renewed policy at about $280. Commission rates are set by each carrier.
- Prices rise about 3% a year.
- Equipment ($4,000 in Year 1) covers computers, printer and phones, and desks, chairs and filing, and later years ($1,000, $1,500, $1,000 and $1,500) replace and add equipment.
- Pay (a full year, per person): owner / Principal Agent $60,000; licensed Agent $48,000.
- Other yearly costs in Year 1: agency Management Software $5,000, licensing & E&O Insurance $8,000, marketing $7,000. These grow between 4% and 5% a year.
- Customers and payers pay about 18 days after service, so at the end of Year 1 about $4,550 is still owed to us. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs