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The independent insurance model is booming. More agents than ever are leaving the safety of captive carriers behind to carve out their own path. But while the rewards can be great, the journey is not without its pitfalls.
I’ve lived both sides. After beginning my career in the captive world, I launched my own agency, Garzella Group, and grew it from scratch to more than $86 million in premium over just 10 years. Along the way, I learned some lessons the hard way - and now I help others avoid those same mistakes. If you're considering going independent, here are four essentials to keep in mind:
1. Get your insurance accounting right from day one
Insurance accounting is not like traditional bookkeeping, it requires a unique approach. Revenue is deferred, commissions hit at odd times, and without proper tracking and financial oversight, it's easy to encounter cash flow issues despite appearing profitable on paper.
Many agents venture into the independent world without understanding how to manage their receivables and payables in a commission-based environment. To navigate these challenges, it's crucial to hire a CPA who understands the nuances of insurance accounting and invest in the right financial tools before your first policy goes on the books.
2. Choose the right tech stack—especially for phones and agency management
Your agency management system (AMS) and phone system are not just tools - they’re lifelines. The wrong AMS can slow down operations, hinder communication with carriers, and frustrate clients.
Similarly, your phone system needs to scale, route calls properly, and track conversations for compliance. These systems are often overlooked until something goes wrong, so don’t wait. Make these decisions deliberately, with growth in mind.
3. Build systems that replicate success
You can't scale chaos. Many agents try to grow by hiring more people without first documenting processes. From quoting to servicing to renewals, every successful workflow in your agency should be systemized. This not only improves efficiency but also sets the foundation for building a team that can operate independently of you. As a leader, your job is to design the playbook - not call every play.
4. Hire out your weaknesses early
One of the hardest lessons I learned was trying to do it all. Whether it’s marketing, compliance, or admin work, independent agents who try to wear every hat burn out fast. Instead, double down on what you do best (whether that’s selling, servicing, or strategizing) and hire for your gaps. It may feel like a big expense early on, but it’s an investment in your sustainability and sanity.
A final word: Know what you deserve in a partner
Not all aggregator or network models are created equal. Many new independents sign with groups that take too much commission for too little support.
Before you commit, ask hard questions: What back-office help is included?
Do I retain full ownership of my book? Is training and mentorship part of the package? The right partner should help you grow, not just take a cut. Breaking out on your own can be one of the most rewarding moves you make, but it pays to prepare. With the right foundation, tools, and team, you’ll be well-positioned to thrive in the independent world.
Dan Garzella is the founder and CEO of the Garzella Group, a portfolio of insurance-focused companies dedicated to innovation, growth, and client protection. With over two decades of experience, Dan has built multiple industry-leading brands by combining cutting-edge technology with a deep understanding of agent and consumer needs. He is recognized for transforming how insurance is marketed, delivered, and scaled across the U.S.
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