We sat down with Joe of Guardian Insurance Solutions, an independent agency in Hilliard, Ohio, for the first episode of our Backbone series. We asked the questions people actually search before opening an agency — and these are his answers.
Captive or independent?
Honisto: Did you go captive first, or straight independent?
Joe: I went straight independent.
Honisto: Did you come into this with experience on the inside, or did you start cold?
Joe: Sales experience, but cold on the property and casualty space.
Honisto: What would you recommend somebody starting out today? Would you recommend them do it the same?
Joe: I’m a fan of independent, so captive is a little more strict in what you can sell and what you can’t sell. I would recommend independence as much as possible to people starting out in this space.
Honisto: What’s the biggest risk of skipping the captive route that nobody warned you about?
Joe: The biggest risk is probably you’re no longer guaranteed income in this space. Unless you’re working directly for an independent under somebody else, starting off as a new agency, you are not guaranteed income.
Getting your first carrier appointments
Honisto: How did you actually get your first carrier appointments — direct, or through a network?
Joe: We did a hybrid approach, so a few came direct. Got told no a lot in the process, but that’s kind of what trickled into a network.
Honisto: Which network, and how did you choose it?
Joe: Originally started with Indium. They were based out in Westerville, still based out in Westerville. We were only with them for about a year, maybe two years, and then we ended up with Smart Choice, much bigger aggregator. We have a sweet rep that has helped us and has been a game changer for our growth.
Honisto: What’s in those network contracts that bites people two years in — exit fees, commission caps, who owns your book if you leave?
Joe: Yep, you kind of nailed it on some — exit fees being a big one. Commission caps is different by every carrier or every aggregator. We’re more of a flat fee that we pay on a monthly basis, but then everything above that fee is ours to take, as well as contingency bonuses, things like that. Book ownership is ours, but again, with all the different aggregators out there, I can’t vouch for how it is with a lot of the others. So definitely review, interview a couple, ‘cause it’s big.
Honisto: Now, looking back — all of it — was it the right call?
Joe: Yes, absolutely. For me, it was the right call for our agency. It did what it needed to do.
About the business: Guardian Insurance Solutions is an independent insurance agency in Hilliard, Ohio, serving personal and commercial clients across the Columbus area. Reach them at guardianinsuranceohio.com, 4694 Cemetery Rd #406, Hilliard, OH 43026, or 614-451-7100.
Related: Part 2 · Part 3 · Part 4 · Part 5 · Part 6 · Backbone Spotlight · The Backbone Series
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