Motorcycle insurance agency with a small office

Insurers pay commission on each policy placed. Some states allow policy or agency fees, so check what applies where you are.

New-policy and renewal commission, with a steady flow of referrals from dealerships, shops and clubs. A visible office can help with trust, and you can add other personal lines over time if your license allows.

• Sales and relationship building
• Explaining coverage clearly
• Basic business and office management
• Networking with local businesses

• State agency license in addition to your individual producer license in many states. Check your state's rules
• Errors and omissions (E&O) insurance and general liability insurance for the office
• Rules on how referral fees and dealership partnerships are paid. Many states restrict paying non-licensed people, so check first
• Lease costs while commission income is still building
• Seasonal riding patterns in colder states

Startup costs are typically around $8,000 to $30,000, depending on your office lease, fit-out and insurance. Lease costs add pressure while commission income is still building, so plan your runway.

Monthly revenue is typically around $3,000 to $15,000, depending on how many policies you place, your local referral ties and the riding season. Colder states may see seasonal patterns.

Check whether your state requires an agency license in addition to your individual producer license. Also check errors and omissions and general liability insurance, and rules on referral fees, since many states restrict paying unlicensed people.