There are two options when considering buying an insurance franchise, captive or independent. The clear choice is an independent insurance franchise for a myriad of reasons. As a captive insurance franchise, you are greatly limited with the services and options available to offer your clients. As an independent insurance franchise, you have unlimited services and options for your clients. As in life, options matter! Furthermore, a captive insurance franchise is extremely vulnerable as we saw in Florida during the 2005 hurricane season. State Farm and AllState told their insurance franchises they could not only not sell home insurance anymore, but also that they would be cancelling the majority of their home insurance policies. Said action by State Farm and Allstate shut down the captive insurance franchise businesses overnight without warning. Therefore, always choose and independent insurance franchise over a captive insurance franchise.
