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Damien Bosco
Damien Bosco, Attorney
Category: Business Law
Satisfied Customers: 2351
Experience:  Helping you with your legal questions.
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I wan to start an insurance agency in MA, not yet I want to

Customer Question

Hi I wan to start an insurance agency in MA
JA: Has anything been filed or reported?
Customer: not yet I want to know the general process and related cost to register an insurance agency in MA
JA: Anything else you want the lawyer to know before I connect you?
Customer: One of the business partner will take the provider test next week. Can I start setting up a business now? We want to start the business soon after he got the license
Submitted: 1 month ago.
Category: Business Law
Customer: replied 1 month ago.
Also once the insurance agency starts, should I talk to other insurance company to have right to sell their policies? Is there any requirement to corporate with them
Expert:  Damien Bosco replied 1 month ago.

Hello. My name is***** am an attorney. I will review your question. I may need to clarify facts first. I will answer & we can discuss issues.

Customer: replied 1 month ago.
What other information you need?
Expert:  Damien Bosco replied 1 month ago.

You can form the company in the meantime as long as no one is acting as an insurance broker without the license.

Below is a list of the biggest start-up costs. We can discuss more if you want to do so:

  • Agency Management System
  • Insurance, including E&O, Package, Workers Comp and Bond
  • Rent Security Deposit and First Month’s Rent
  • Initial Aggregator Fee (not all groups charge this)
  • Office Computers and Printers
  • Office Furniture
  • License costs, including Insurance Agency License and any required business licenses
  • Legal costs if you plan on setting up a Partnership, LLC, or Corporation
  • The resulting total start-up cost can range from at least $5000 to $40,000
Customer: replied 1 month ago.
What is the cost for agency management system?
Expert:  Damien Bosco replied 1 month ago.

There are a variety of providers. Here is the estimated costs for some of them (subject to change):

Here is some information:

1. NexSure: ~$1.5K to sign up + $100/mo per user. "All you can eat" - everything is included. 3 users minimum required.
2. Applied TAM: $5.5K to sign up + $150/mo per user. Add another $150 for "carrier's download"
3. Applied Epic: $8K to sign up + $150/mo per user. Add another $150 for "carrier's download"
4. AMS InStar: $2K to sign up + $100/mo per user.
5. AMS 360: $4K to sign up + $150/mo per user.
6. Ebix: ? to sign up, $100 per month
7. EbixASP: ? to sign up, $100 per month
8. Hawksoft: ? to sign up, $100 per month
9. Nasa Eclipse: from $750 to $1,200 per year per user. No sign up fees.

We can continue if you want to do so.

Customer: replied 1 month ago.
Ok. So go back to my original question. Could you tell me the process to set up an insurance agency?
Expert:  Damien Bosco replied 1 month ago.

Here is a link to an excellent detailed guide on how to start your agency:

https://www.agencyequity.com/how-to-start-an-insurance-agency?showall=#.WCD0ihIrJZ0

It reviews the whole process.

Also, here is a link to how to get your agency license for a corporation in Massachusetts:

http://www.mass.gov/ocabr/licensee/license-types/insurance/individual-and-business-entity-licensing/adviser-corporate/

Customer: replied 1 month ago.
Ok. Thanks for the information
Expert:  Damien Bosco replied 1 month ago.

You are welcome!

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