Do you want to start an insurance company but want to go niche and be unique? If YES, here are 50 best insurance related business ideas & opportunities for 2022. Starting an insurance business in the United States, due to the growing competition and diversification, is not an easy feat. The United States insurance industry has grown very wide, but for a willing entrepreneur, there are a lot of fields to specialize in.
Anyone looking towards starting an insurance company can choose an area of insurance to specialize in or they could choose to start a general insurance company; an insurance company that is involved in selling life insurance, health insurance auto/car insurance, liability insurance, amongst others.
To start this business, you are required to get an insurance license from the National Association of Insurance Commissioners that regulates the industry. Obtaining an insurance license might not be easy, especially on the united states. Applicants are required by law to meet certain laid down criteria and sometimes it is the bureaucracy involved in the whole process that makes it difficult to obtain.
To be eligible to apply for an insurance license, you must first write and pass some licensure examinations. If you are serious and determined, you could write and pass the exam in one sitting, but if not, then you should be ready to take the exams over and over again. The insurance industry is relatively open for anyone who’s interested in the industry.
Even if you don’t have the finance and other requirements for starting an insurance company, you can come into the industry by starting out as an accredited insurance broker. But it is advisable that your research the industry, and choose a suitable niche. When it comes to niches and areas of specialization, the insurance industry has several options. Below are 50 ideas you can start in the United States.
50 Best Insurance Business ideas & Opportunities for 2022
Table of Content
- Property Casualty Insurance Company
- Hotel Insurance company
- Contractors’ All Risks (CAR) Insurance company
- Youth Sports Insurance firm
- Water Damage Insurance company
- Burial insurance company
- Flood Insurance company
- Personal Lines Insurance company
- Cooperative Insurance firm
- Titled Insurance Firm
- Kidnap Insurance company
- Finite Risk Insurance firm
- Renter’s insurance company
- Tuition Insurance firm
- Homeowner’s Insurance company
- Disability Insurance company
- Fire Insurance firm
- Catastrophe Insurance company
- Business liability insurance for small businesses
- Commercial Property Insurance
- Aviation Insurance firm
- Use and Occupancy Insurance – U&O
- Automobile Liability Insurance company
- Hazard Insurance firm
- Fidelity bonds
- Commercial Lines Insurance business
- Pet Insurance company
- Gap Insurance company
- Mutual Insurance Company
- Capital Stock Insurance Company
- Expatriate insurance company
- Blanket Insurance company
- Weather Insurance company
- Annual Renewable Term (ART) Insurance company
- Life Insurance company
- Broad Form Insurance Company
- Guaranteed Issue Life Insurance company
- Third-Party Insurance firm
- Surplus Lines Insurance company
- Blanket Contractual Liability Insurance company
- World Insurance company
- Betterment Insurance company
- Substandard Insurance firm
- Consignment Insurance company
- Livestock insurance Company
- Divorce insurance company
- Air Cargo Insurance company
- Indemnity Insurance company
- Decreasing Term life Insurance company
- Wholesale Insurance firm
Property Casualty Insurance Company
Your job in this business will be to protect households and businesses from financial losses. Property insurance is used to protect against losses to physical assets like houses, cars and equipment. Casualty insurance is used to protect against losses from legal liabilities.
This business, just like any other insurance business, will give you the freedom to set your own schedule and the chance for a higher profit margin as against working for an established company.
But note that you must register with your state’s insurance commissioner and take the property and casualty insurance exam. Consider taking the life insurance and health insurance exams as they will include similar material and help you grow your business.
Hotel Insurance company
A hotel business has three fundamentals. The first is the property/premises, the second are the staff and guests, and the third is the income. Keeping these three things safe brings forth good tidings and profits for the business owner. Your clients in this business will seek to protect their property under the buildings and contents insurance, also public and employers’ liability insurance in case someone gets hurt within the premises.
There is also business interruption insurance. The simple fact is, no two hotels are the same. The number of rooms, the turnover, members of staff, the food served, the type of building, any events the hotel hosts, and any other services they offer all affect the level of risk and therefore the level of cover. Hotel insurance is specifically designed to accommodate these risks.
Contractors’ All Risks (CAR) Insurance company
Note that Contractors’ all risks (CAR) insurance is a non-standard insurance policy that gives coverage to property damage and third-party injury or damage claims, the two major types of risks on construction projects. Damage to property can include improper construction of structures, damage that occur during a renovation and damage to temporary work erected on-site.
Third parties, including subcontractors, may also become injured while working at the construction site. CAR insurance not only covers those associated risks, but also bridges these two types of risks into a common policy designed to cover the gap between exclusions that would otherwise exist if using separate policies. Your ideal clients in this business will be contractors and construction firms.
Youth Sports Insurance firm
Youth sports administrators, coaches and officials may be personally liable for the actions of the organization, including any incidents that occur during play. They are expected to purchase and be well-versed in youth sports association insurance which will help guard them from financial disaster. This need and the growing prevalence of sports in the country has made this niche worth every drop of sweat and hard work you put into it.
A youth sports organization of any type should purchase at least four different insurance policies; accident insurance, General Liability Insurance, crime insurance, directors and officers liability. Some organizations may also need additional insurance policies depending on their exposures.
Examples of other policies to be considered include Workers’ Compensation if required by state law; Property insurance to cover buildings and contents against loss due to fire, wind, theft, vandalism, etc.; Equipment insurance to cover equipment that may move from location to location; and Auto insurance if vehicles are owned.
Water Damage Insurance company
In the United States, you can start an insurance company that provides water damage policies to homeowners. Water damage insurance does not cover damage resulting from homeowner’s negligence or failure to maintain home repairs. As water damage insurance does not cover negligence, many types of water damage to real property can and should be avoided through proper maintenance.
This can be anything like watching out for drops from the ceiling during a rainstorm or a fixing a leaky pipe under the kitchen sink before mould becomes prevalent. All these doesn’t make this business idea less interesting or lucrative. The real estate industry is growing rapidly and will always create an opportunity for this idea.
Burial insurance company
As odd as it may seem, burial insurance is a very old type of life insurance which is paid out upon death to cover final expenses such as the cost of a funeral. Reports have it that the Greeks and Romans introduced burial insurance in c. 600 CE when they organized guilds called “benevolent societies” which cared for the surviving families and paid funeral expenses of members upon death.
Guilds in the Middle Ages served a similar purpose, as did friendly societies during Victorian times. The world population is growing and people are beginning to think about the sustenance of wealth and privileges they need to leave behind for their families after death. This business idea is indeed absurd but it’s very lucrative when channeled and managed right.
Flood Insurance company
Flood insurance is a financial instrument that protects real property owners from water damage to the structure and contents of their property. All flood insurance policies are federally regulated so the same policy costs the same amount.
This business is a very interesting insurance business as typical hazard insurance policies do not cover flooding, homeowners must purchase a separate policy for protection against flood damage, which creates a huge market void that you can fill successfully. For properties in high-risk areas, lenders sometimes ask mortgaged homeowners to carry flood insurance to protect the structure.
Personal Lines Insurance company
This type of insurance niche includes property and casualty insurance products that protect individuals from losses they couldn’t afford to cover on their own. Have it in mind that the vast types of insurance lines make it possible to do things like drive a car and own a home without risking financial ruin.
Personal lines insurance and commercial lines insurance each make up about half of the property and casualty insurance market. Your ideal clients in this business are very huge. Some types of personal insurance, such as automobile liability insurance, are often needed by law in most places in America.
Required minimum levels of automobile liability insurance, for example, is common and can vary by jurisdiction. Other types of personal lines insurance, such as comprehensive and collision automobile insurance and homeowners insurance, can be required by lenders when property is collateral on a loan.
Cooperative Insurance firm
This kind of insurance lets policyholders come together with others who have similar risks to purchase more extensive coverage at a more affordable rate. For example, apart from apartment buildings, trade unions will often offer some form of co-op insurance, since there may be certain risks that everyone in the union is exposed to, and it makes sense to purchase coverage as a group.
Note that the typical model for a cooperative is everyone involved in the cooperative that pays for the insurance receives a portion of ownership of the policy that is proportional to how much they pay.
So, those who pay for five percent of the total policy would receive five percent ownership. Have it in mind that the insurance your business will be offering here covers claims that affect individual shareholders and the personal belongings inside their units.
Your job in this business is to make sure the title to a piece of real estate is legal and then issue title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title.
These businesses also maintain escrow accounts, they contain the funds needed to close on the home, to make sure that this money is used only for settlement and closing costs, and may conduct the formal closing on the home. You will have to help clients by searching public and real estate records for information about a property. You will also provide information on who has the right to sell a property, and if there are any judgments or liens connected to it.
Then you will issue title insurance to protect owners in case someone challenges the sale of a property. Note that this business is very good for individuals who are detail-oriented, good with numbers, like having a flexible work schedule and are highly motivated. Your prospective customers in this business are usually homeowners, but may also be other businesses.
Kidnap Insurance company
Your business can offer insurance designed to protect individuals from the risk of kidnapping. You need to understand that this type of insurance often covers other events related to kidnapping, including extortion. In the case of a kidnapping, the policy holder is compensated for money paid as ransom, medical expenses, counselling or for accidental death of the kidnap victim. Kidnap insurance is more likely to be used for individuals or companies operating in high-risk areas.
Finite Risk Insurance firm
In this insurance contract, the insured provides a pool of funds for use as loss reserves and for generating investment income. The insured party pays the insurer premiums that are used to cover losses, and if the insurer does not have to pay losses then the remaining premiums (less fees) are returned to the insured.
Companies tend to use finite risk insurance to cover liabilities that have long durations. Agreeably, a company may save money by self-insuring for these risks, especially if no losses are actually experienced, a finite risk insurance contract at least provides an element of risk transfer.
A company may enter into a finite insurance agreement to cover excess losses over other policies, including its own self-insurance strategy. Types of risks that companies may use finite risk insurance for include product warranties, environmental or pollution risks, and intellectual property risk.
Renter’s insurance company
You can comfortably start an insurance firm that offers this kind of insurance, as it has an endless target market. Renter’s insurance is available to persons renting or subletting a single family home, apartment, duplex, condo, studio, loft or town home.
Note that this policy protects against losses to the tenant’s personal property within the rented property. Also it protects against losses resulting from liability claims, such as injuries occurring on the premises that are not due to a structural problem with the property. Nowadays in the United States, proof of renter’s insurance is required by many landlords.
Tuition Insurance firm
You can start a business that offers insurance policies that allows families to recoup some or all the tuition paid should their child leave school midway through the semester. Tuition insurance is usually offered for students in elementary and secondary schools.
Note that to file a claim for reimbursement, parents and students have to prove that the reason for withdrawing from school meets certain conditions, which might include job loss, illness, etc. Different schools have different conditions that must be met before a reimbursement claim can be honoured.
Homeowner’s Insurance company
This business field is a sub niche under property insurance, which covers losses and damages to an individual’s house and to assets in the home. They also provide liability coverage against accidents in the home or on the property.
A homeowner’s insurance policy usually covers four incidents on the insured property – interior damage, exterior damage, loss or damage of personal assets/belongings, and injury that arises while on the property. When a claim is made on any of these incidents, the homeowner will be required to pay a deductible, which in effect, is the out-of-pocket costs for the insured.
Disability Insurance company
Insurance firms that offer insurance policies that provide financial support in the event of the policyholder becoming unable to work because of disabling illness or injury are becoming very popular in the United States. This policy provides monthly support to help pay such obligations as mortgage loans and credit cards.
Short-term and long-term disability policies are available to individuals, but considering the expense, long-term policies are generally obtained only by those with at least six-figure incomes, such as doctors, lawyers, etc. Short-term disability insurance covers a person for a period typically up to six months, paying a stipend each month to cover medical bills and other necessities.
Fire Insurance firm
You can start an insurance firm that offers this specific kind of property insurance that covers damage and losses caused by fire. Some of your clients may want to purchase fire insurance in addition to homeowner’s or property insurance, because it helps to cover the cost of replacement, repair, or reconstruction of property, above the limit set by the property insurance policy.
Have it in mind that this policies typically contains general exclusions such as war, nuclear risks, and similar perils. Fire insurance policies include payment for loss of use, or additional living expenses due to uninhabitable conditions as well as damage to personal property, and nearby structures. A fire insurance policy includes additional coverage against smoke or water damage due to a fire and is usually effective for one year.
Catastrophe Insurance company
Catastrophe insurance protects businesses and residences against natural disasters such as earthquakes, floods and hurricanes, and against man-made disasters such as terrorist attacks. Some of these perils cannot be prevented or managed by humans, as they occur at their own time and moment. These low-probability, high-cost events are generally excluded from standard hazard insurance policies, which makes catastrophe insurance necessary.
Note that this kind of insurance is different from other types of insurance in that it is difficult to estimate the total cost of an insured loss, and a catastrophic event results in an extremely large number of claims being filed at the same time. It is one of the few challenges faced by this insurance niche as businesses in this field find it hard to effectively manage risk.
Business liability insurance for small businesses
It will be a lucrative endeavour to start a business that provides insurance that protects a small business owner in the event of a formal lawsuit or any third-party claim. Coverage includes any financial liability incurred in addition to expenses related to the company’s legal defense. There are three main types of business liability insurance: general liability insurance, professional liability insurance and Product liability insurance.
Small business owners – especially partnerships and sole proprietorships – put their personal finances at risk in the event of a business-related lawsuit. Even under a limited liability corporation (LLC), an owner could still be exposed to personal risk. It creates a vast opportunity for you in the insurance industry.
Note that this kind of insurance is used to cover any type of commercial property. With the population of the United States ever on the increase, the need for homes and property will always grow. Commercial property insurance protects commercial properties from such perils as fire, theft and natural disasters.
Your clients in this business will not be just home owners, as a variety of businesses, including manufacturers, retailers, service-oriented businesses and not-for-profit organizations purchase this insurance. Commercial property insurance can be a major expense for businesses that use equipment worth millions or billions of dollars, such as railroads and manufacturers.
Aviation Insurance firm
This kind of insurance was first introduced in the early years of the 20th century. The first-ever aviation insurance policy was written by Lloyd’s of London in 1911. The company stopped writing aviation policies in 1912 after bad weather at an air meet caused crashes, and ultimately losses, on those first policies. This insurance coverage is geared specifically to the operation of aircraft and the risks involved in aviation.
Aviation insurance policies are greatly different from those of other areas of transportation and tend to incorporate aviation terminology, as well as terminology, limits and clauses specific to aviation insurance. Do not venture into this field if you are just a newbie in the insurance industry, you need vast experience in the aviation industry joined with being an insurance prodigy to succeed in this niche.
Use and Occupancy Insurance – U&O
This type of insurance covers against the loss of use of machinery or property due to damage resulting from a named peril or hazard, such as a fire or natural disaster. Use and occupancy insurance provides certain coverage through endorsements if the equipment or property can no longer be used. Also known as business interruption insurance or business income coverage, your ideal customers in this business are huge and immeasurable, but you have to be ready for competition and innovation in this field.
Automobile Liability Insurance company
With the amount of cars and vehicles in the United States, this insurance niche is one of the most competitive and profitable businesses to start up. Automobile liability insurance is financial protection for a driver who, while operating a vehicle, harms someone else or their property.
Automobile liability insurance only covers injuries or damages to third parties and their property, not to the driver or the driver’s property. The two components of automobile liability insurance are bodily injury liability and property damage liability. Automobile liability insurance is required by state law, but each state sets its own minimum standards for how much coverage drivers are required to carry.
Hazard Insurance firm
Your business here will provide insurance that protects a property owner against damage caused by fires, severe storms, earthquakes or other natural events. Note that a typical property or homeowners’ insurance policy usually won’t cover all events that could damage a property. In high-risk areas, some events will definitely be excluded from homeowners’ insurance.
For instance, Florida is prone to hurricanes and is therefore, considered high risk. If a homeowner lives in a high-risk area, he or she may need a separate policy, such as a flood insurance policy, which is a type of hazard insurance. Your business can offer these policies and make substantial profit.
A fidelity bond is a form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees. While called bonds, these obligations to protect an employer from employee-dishonesty losses are really insurance policies.
These insurance policies are very common in the United States as it protects employers from losses of company monies, securities, and other property from employees who may want the company to sustain a loss or gain an improper financial benefit, either for themselves or another party.
Commercial Lines Insurance business
You need to understand first that this insurance includes property and casualty insurance products for businesses. It helps keep the economy running smoothly by protecting businesses from potential losses they couldn’t afford to cover on their own, which gives businesses the backbone to operate when it might otherwise be too risky to do so.
You can start this business successfully in the United state. Don’t get scared away by the belief that this insurance is strictly for large companies. Commercial lines aren’t just for large companies. Even a small, home-based business might need one or more commercial lines because homeowners insurance provides limited or no insurance for business activities.
This line of insurance is becoming increasingly popular in the United States. It is a policy purchased by the owner of a pet that will reduce the overall costs if the pet incurs expensive medical bills. This is similar to health insurance policies except that it relates specifically to pets and will cover, either fully or in part, the often expensive fees that are incurred during veterinary procedures.
A lot of animal medical procedures such as surgeries and sickness, are very expensive to treat. To help with these costs, you can start a business that offers a pet owner a policy that will save out-of-pocket expenses by paying a yearly or monthly fee known as the premium.
Gap Insurance company
Your business will offer a specific type of auto insurance that car owners can buy to protect themselves against losses that can arise when the amount of compensation received from a total loss does not fully cover the amount the insured owes on the vehicle’s financing or lease agreement. Note that this situation arises when the balance owed on a car loan is greater than the book value of the vehicle. This field has a huge market that is yet untapped. You can start this business and with careful planning achieve success and good profit.
Mutual Insurance Company
A mutual insurance company is owned by policyholders. The major purpose of a mutual insurance company is to provide insurance coverage for its members and policyholders, and its members are given the right to select management. Federal law, rather than state law determines whether an insurer can be classified as a mutual insurance company.
Note that mutual insurance companies get a large portion of their funding from member premiums, which can make it difficult to raise funds in order to acquire companies if the need to expand rises. Also note that when a mutual insurance company switches from member-owned to being traded on the stock market, this is called “demutualization.”
This shift may result in policyholders gaining shares in the newly floated company. Because they are not publicly traded it can be more difficult for policyholders to determine how financially solvent a mutual insurance company is, or how it calculates dividends it sends back to its members.
Capital Stock Insurance Company
Simply put, a capital stock insurance company is a company that gets its capital from stockholder contributions, in addition to its surplus and reserve accounts. It gets majority of its assets or money from the sale of shares or stock to stockholders.
Note that the key difference between a stock insurer and a mutual insurer is that a stock insurance company is owned by its shareholders, while a mutual insurer is owned by its policyholders. A stock insurer may be privately held or publicly traded.
A stock insurer distributes profits to shareholders in the form of dividends, or it may earmark profits to pay off debt or reinvest them in the company. In a mutual insurance company, surplus may be distributed to policyholders in the form of dividends or retained by the insurer in exchange for reductions in future premiums.
Expatriate insurance company
You can comfortably start a company that protects expatriates. These kinds of policies are designed to cover financial and other losses incurred by expatriates while living and working in a country other than one’s own. These policies will generally cover the duration of the clients stay and can be purchased on a 6-month to annual basis. The most common insurance policies purchased by expatriates include: Personal property, Automobile insurance, Personal liability insurance, Emergency evacuation, Medical and dental coverage, Short-term travel insurance etc.
Blanket Insurance company
This insurance is a single property insurance policy that covers more than one type of property at the same location, the same kind of property at multiple locations, or multiple kinds or property at two or more locations. With business Franchising becoming a considerable alternative, this idea is beginning to sell out massively.
It covers personal possessions as well as the actual dwelling, “blanketing” all the homeowners’ possessions. Your clients won’t include people who don’t own multiple properties, and don’t have complicated health insurance needs. Your ideal client will be someone or businesses that own multiple properties that need to be insured – whether residential, rental or commercial.
Weather Insurance company
Your clients will purchase these policies as protection against a financial loss that may be caused by rain, snow, storms, wind, fog, undesirable temperatures or other adverse, measurable weather conditions. Your services will also be needed to insure an expensive event that could be ruined by bad weather, like an outdoor wedding or an outdoor film production.
But you need to understand that the premium for weather insurance is determined based on location and time of year, in other words, based on the likelihood of the insured weather event occurring and the amount of potential loss.
Annual Renewable Term (ART) Insurance company
The insurance your business will offer here is a form of life insurance that offers a guarantee of future insurability for a set period of years, although premiums are paid every year on the basis of a one-year contract. It also means that the premiums will rise over time as the insured person ages. This type of life insurance is typically designed for short-term insurance needs.
Annual renewable term insurance is less common than level term insurance, where premiums stay constant over the life of the contract. The longer an insured person uses annual renewable term insurance, the more costly it becomes. ART insurance typically offers guaranteed re-insurability for a period of 10 to 30 years, depending on the age of the individual.
Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. The insurance company promises a death benefit in consideration of the payment of premium by the insured. A lot of insurance businesses offer this policy in the United States, but you can achieve success by specializing or finding a niche within the niche.
People purchase life insurance to provide financial protection to surviving dependents after the death of an insured. Your job will also include assessing the needs and establishing the type of life insurance most suitable to address your clients’ needs. Several life insurance channels are available including, whole life, term life, universal life, and variable universal life (VUL) policies.
Broad Form Insurance Company
This form of insurance coverage goes beyond the basics to include rare events that may be of serious risk to the insured. This type of insurance requires that a higher premium, and often a deductible, be paid. Broad form insurance can be applied to nearly all forms of insurance, including investments, assets, etc. In most states, insurers refer to a broad form policy in reference to a comprehensive general liability Insurance policy that provides a wide range of coverage that can be tailored to suit specific needs.
In recent years, some auto insurers have to offer broad form insurance options to businesses, which provide coverage for employees, executives or any other person who is supplied a company vehicle, but who does not own a personal vehicle and, thus, does not have coverage under a personal auto policy. In such a situation, an endorsement may be added that gives protection while the named individual or spouse is driving a car borrowed from a third party.
Guaranteed Issue Life Insurance company
This insurance business is a type of financial-protection policy that provides cash to a named beneficiary upon the insured’s death, which your company will offer to an applicant regardless of health. This type of insurance business is one of the easiest insurance businesses to start, but yet so risky.
Guaranteed issue life insurance tends to be a last resort for people who can’t qualify for life insurance because of their current or past health problems and who don’t have the option to purchase life insurance as a benefit through their employer.
In addition to higher premiums, businesses in this niche protect themselves against risk in two additional ways: first by offering relatively low pay outs, and secondly by typically not providing a death benefit during the first two years after issuing the policy (if the policyholder dies during this time, the company issues a refund of premiums instead). It will protect your business from having to make pay outs for people who sign up for policies when they are close to dying, just in time for their loved ones to receive a death benefit.
Third-Party Insurance firm
The market demand for this business is good and growing. This insurance policy is a form of liability insurance purchased by an insured (first party) from an insurer (second party) for protection against the claims of another (third party), as seen in the automobile industry.
There are two types of automobile third-party liability coverage. First, bodily injury liability covers costs resulting from injuries to a person. These injuries costs could include expenses like hospital care, lost wages, and pain and suffering due to the accident. Secondly, property damage liability covers costs resulting from damages to or loss of property.
As required by law, drivers must carry at least a minimal amount of bodily injury liability and property damage liability coverage. A few states have requirements that do not require both or have other limitations. Each state sets its minimum requirement for each type of coverage. Even in “no-fault” states, liability coverage is all but essential.
Surplus Lines Insurance company
Surplus lines insurance protects against a financial risk that is too high for a regular insurance company to take on. Surplus lines insurance which is very capital intensive, unlike regular insurance, can be purchased from an insurer that is not licensed in the insured’s state, though the surplus lines insurer will still need to be licensed in the state where it is based.
But to sell a surplus lines policy you must have a surplus line license. Also called excess lines insurance, surplus lines insurance makes it possible to get insurance for entities with unique risks that mostly not covered or those with a claims histories that makes them otherwise uninsurable.
Blanket Contractual Liability Insurance company
This insurance is designed to be automatically applicable to any agreement that a business may sign. Most businesses are more than willing to accept payment from other companies, but are much less willing to accept risks that come along with the arrangement.
So, to protect itself a business may ask other companies to maintain various types of liability insurance policies. These policies protect both the insured party and the parties with whom the insured works. The coverage is designed to indemnify or “hold harmless” another person or entity for actions not specifically excluded on the insurance policy. This type of coverage may be included on a policy, or it can be added with an additional endorsement.
World Insurance company
This insurance is a commercial liability policy with extended global coverage. Your job will be to provide coverage in the event your client is sued anywhere in the world. Generally, commercial liability policies have a geographic limit for coverage.
It is common for companies with global operations or who have contracts with international partners/associates to purchase this type of world coverage. In addition to property and Workers Compensation Insurance, commercial liability insurance (also referred to as general liability insurance) is essential to businesses. Your major purpose will be to protect the assets of your client in the event it is sued for alleged bodily injury or property damages.
Betterment Insurance company
With the rapid growth of the real estate industry comes new and innovative market void that you can feel. This type of insurance refers to insurance coverage that a tenant in a rental property carries to cover any additions or modifications to the leased space that are made to fit his or her, or a business’s, particular needs.
Note that the property owner typically holds an insurance policy to cover the structure; the tenant then purchases a policy to cover any improvements made to the property. Your business will have to cover improvements made by a tenant to a rented property, and most often refer to commercial properties.
For instance, a business may rent a commercial property to house its offices. The property owner holds an insurance policy on the structure. The company renting the building purchases a betterment insurance policy to protect any improvements or additions to the property, including shelving, equipment, desks, computers, etc.
Substandard Insurance firm
The name of this insurance niche doesn’t mean that you will be offering policies that are illegal or beyond normal insurance standards. You will be offering insurance policies to people who do not qualify for a standard insurance rate.
Substandard insurance policies may contain special or restricted provisions or higher premiums because the insured carries a greater risk, which increases the probability that your company will incur a loss. Note that this insurance can be extended to a broad array of consumers, including those with poor driving records or with poor physical health.
Consignment Insurance company
This is a type of insurance that covers loss or damage to items that are on consignment, loan, up for auction or in the process of transfer. Note that this insurance will pay out only if the damage or loss is incurred while the property is not currently held, maintained or cared for by the owner.
You need to understand that this is a separate form of insurance from that which covers items held in-house as inventory. Selling on consignment is a great option for an individual or business that does not have a brick-and-mortar presence, although consignment arrangements can also exist in cyberspace.
To a certain degree, online companies such as eBay are consignment shops; for a percentage of the sale, they offer people a marketplace to exhibit and sell their wares. This goes to establish that your target market in this business is huge and more can be expected in the near future.
Livestock insurance Company
Agriculture feeds a nation and the United States is indeed not left out. The government has always encouraged citizens to go back to the farm and invest more. The growing population of the United States needs food, and your job will be to protect these foods.
You will be issuing a specialist policy provided to, for example, commercial or hobby farms, aquariums, fish farms or any other animal holding. Cover is available for mortality or economic slaughter as a result of accident, illness or disease but can extend to include destruction by government order.
Divorce insurance company
This is a form of contractual liability insurance that pays the insured a cash benefit if their marriage ends in divorce. This form of insurance offering is relatively new in the United States and still open for willing entrepreneurs. The first company to offer “Divorce Insurance” was SafeGuard Guaranty Corporation.
Note that the purpose of divorce insurance is to reduce to some extent the risk of incurring significant financial loss as a result of a divorce proceeding. Divorce has become a major contributing factor to bankruptcy and poverty not just in the United States but globally, which in turn created the demand for such a product.
Air Cargo Insurance company
With the growing market for ecommerce and importation, this type of insurance is becoming necessary in the United States. Air cargo insurance is a type of policy that protects a buyer or seller of goods being transported through the air. It reimburses the insured for items that are damaged, destroyed or lost.
The amount of coverage and deductible required for air cargo insurance varies based on the goods, as well as the individual provider. Indeed individuals sometimes buy air cargo insurance, far more often companies buy it to ship their inventory to customers and distributors, both in the U.S. and around the world.
Indemnity Insurance company
Indemnity insurance also referred to as professional liability insurance, is a supplemental form of liability insurance specific to certain professionals or service providers. The professionals provide counsel, expertise, or specialized services.
This insurance solely protects against claims arising from possible negligence or failure to perform that results in a client’s financial loss or legal entanglement. Your target market is this business is huge. Certain professionals must carry indemnity insurance.
For instance, those involved in financial and legal services, such as financial advisors, insurance agents, accountants, mortgage brokers, and attorneys. When dispensing financial or legal advice, these professionals are potentially liable for negligence or inadequate performance despite the intent of goodwill.
Decreasing Term life Insurance company
You can start a business that specializes solely on offering decreasing term insurance policies. Note that this insurance is a renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate.
Premiums are usually constant throughout the contract, and reductions in coverage typically occur monthly or annually. Your prospective clients will buy this insurance because it is a more affordable option than whole life or universal life insurance. In this policy, the death benefit is designed to mirror the amortization schedule of a mortgage or other high personal debt not easily covered by personal assets or income.
Wholesale Insurance firm
Wholesale insurance is coverage for employer groups that are too small to qualify for true group coverage. It is also known as franchise insurance. This type of insurance policy covers an entire group, though individual policies are written for each person that is to be insured.
This insurance is sold to members of a group with rates based on individual rates, typically with some type of discount based on expense savings.
For instance, wholesale health insurance, essentially an individual health plan that is provided to groups of people in companies that have fewer than 10 employees. In this case, each employee can purchase a policy, or in some instances, the employer would pay the premiums as part of an employee benefits package.
In conclusion, insurance business is a capital intensive business. Aside from the money you would need to rent an office, get the business registered, obtain the required business permits and license and then make provision for the payment of your staff for at least 6 months or more, you should also be ready to meet the financial requirement / capitalization as stated by the insurance regulating body in the United States.
You need to understand that the insurance industry is one industry where you need a certain amount of capital base before you can successfully swing into full operations; usually the money required is in the range of several thousands of dollars.
Reports have shown that one of the challenges insurance companies usually face is the inability to pay claims; which is why to mitigate this challenge, anyone looking towards starting an insurance company must meet the set financial requirement especially in the United States.