How do I start my own insurance agency?

Start by getting your own producer license, because an agency's business entity license generally requires a designated responsible licensed producer who is actively licensed for the same lines in that state. Then apply for the business entity license, secure carrier appointments (the legal contracts that authorize you to sell each insurer's products), and carry errors and omissions liability insurance. Startup costs for an independent agency vary widely, from a small home-office setup to well into six figures depending on staffing and infrastructure.

To open an agency in Delaware, you need a business entity (insurance agency) license from the state insurance department, applied for online through the National Insurance Producer Registry (NIPR). The entity must designate a licensed producer responsible for compliance; if that producer's license stops being active, the agency license is immediately suspended and lapses if no producer is affiliated. The entity license fee was $125 before the $25 increase effective May 7, 2025.

Any business location where someone performs a function requiring an agent license must itself be licensed as an insurance agency, applied for through MyProfile. The agency needs an agent-in-charge who holds and is appointed for one of the qualifying license types, such as general lines (2-20) or life and health (2-15). Agency licenses are perpetual, but they expire after 90 days without an agent-in-charge, and agents must be appointed by insurers rather than by the agency itself.

License the business itself: a resident producer business entity (agency) license costs $45 through the Maine Bureau of Insurance and renews December 1 of even-numbered years for $30. The agency must be appointed by each insurer it represents, though the initial appointment fee for a producer agency is $0. An individual can hold an active license without an agency affiliation or company appointment, but appointments are needed to transact as an insurer's agent.

To start an insurance agency in Montana, first hold an active producer license, because a business entity license stays active only while at least one active licensed producer is affiliated with it. Agency licenses are perpetual and carry no renewal fee. Licensing transactions go through the National Insurance Producer Registry (NIPR), and changes to designated responsible licensed producers are emailed to the CSI producer licensing office. Startup costs vary widely, from a few thousand dollars for a home-based agent to tens of thousands for a full agency.

In New Hampshire, an agency that sells, solicits, or negotiates insurance must hold a business entity license, applied for at nipr.com. The agency must name a Designated Responsible Licensed Producer (DRLP) who holds a license for each line of authority the entity selects. Once the agency places business, carriers must register appointments within 15 days of initiating business. Business entity licenses expire May 31 and renew online for two full years.

In North Dakota, an agency is a licensed business entity. The business must hold an insurance producer license, applied for through the National Insurance Producer Registry (NIPR), and must designate a licensed individual principal producer responsible for compliance, informing the commissioner within 10 working days of any change in that designation. Insurers then appoint the agency; each company appointment costs $25 as of August 1, 2025, and the insurer must file the appointment within 30 days of the contract signing or first application, whichever is later.

A Rhode Island business entity pays the same license fee as an individual license of the same class, so you can form an agency and apply for a business entity producer license through NIPR. Each insurer you represent must file a Notice of Appointment through NIPR within 15 days of the first insurance application, at $15 per producer per company; appointments are valid through January 31 annually. All resident producers must carry errors and omissions (E&O) insurance under R.I. Gen. Laws § 27-2.4-23.

South Dakota licenses agencies as business entities through the state's producer application system, filed electronically through the National Insurance Producer Registry (NIPR). The business entity application fee is $25 for resident agencies and $30 for non-resident agencies. The entity must designate a licensed producer responsible for compliance, and the entity license does not authorize individuals to sell insurance without their own licenses. Each individual producer also needs an appointment from each insurer whose products they sell.

To open an insurance agency in Vermont, you first need an individual Producer license: be at least 18, pass the written exam, and pay a $30 application fee plus a $30 license fee. Your business then needs a Business Entity Producer license ($30 initial fee per the DFR fee chart), applied for through NIPR. Vermont is an appointment state, so each insurer you represent must appoint you within 15 days of executing an agency contract or submitting the first insurance application, whichever comes sooner.