Insurance Agency Acquisition: Due Diligence Checklist

Looking to grow your insurance agency through acquisition? Agency acquisition can be a powerful strategy — but only if you know exactly what you're getting. This due diligence checklist will walk you through the questions to ask when buying an insurance agency, covering financials, operations, and strategic fit. Whether you're expanding your book of business or planning your first acquisition, it's essential to approach the process with clarity and confidence.

This checklist should support your due diligence process, as you consider the purchase of an agency from multiple angles. (We'd also suggest that you check out our podcast on due diligence.)

Download the checklist

Financials

Before you purchase an independent insurance agency, take a close look at the numbers. The financials tell you if the business is profitable, sustainable, and worth the investment. It’s not just about what’s on the books — it’s about what those books say about the future.

General Financial Health

How healthy is this business? The numbers should reflect a stable, well-run operation.

• Review profit & loss statements and balance sheets.

• Confirm the agency follows standard accounting practices.

• Analyze expenses — could you run this business more efficiently?

• Verify annual premiums and commissions

• Ask a financial pro to review bank statements for operating and trust accounts

• Confirm trust accounts are fully funded and used correctly (for paying carriers)

• Check for consistency across all financial documents

Solid financials do more than support a purchase — they unlock better funding options and position you for long-term growth.

Production Trends

Understand where the revenue is coming from — and whether it’s sustainable.

• Request commission reports and retention rates

• Review agency management system reports for trends

• Get a list of carriers and the percentage each contributes to the book

• Identify the mix of policy types (commercial, personal, life, etc.)

• Ask if they’ve added or lost carriers recently — and why

• Check if revenue depends heavily on a few large accounts

• If commercial-heavy, note when policies renew and how soon you’ll earn commissions

• Ask about recent growth initiatives and their results. What’s worked well — and what didn’t

AgileCap helps you evaluate production data through the lens of insurance agency lending — so your financing aligns with real, sustainable earning potential.

Contracts & Agreements

Make sure you know what obligations (and protections) you’re inheriting.

• Are there non-compete agreements with current employees?

• Will those agreements transfer to you after the sale?

• Will carrier contracts move with the acquisition?

• Are there any third-party agreements you’ll be responsible for honoring?

• Are there client service agreements or guarantees you’ll be expected to honor, specifically regarding pricing, coverage, or service levels?

With deep experience in insurance agency acquisition financing, AgileCap can help you assess which agreements matter most before you commit.

Taxes, Legal & Debt

Unpaid taxes, legal issues, or hidden debt can turn a smart acquisition into a costly mess — spotting those risks early gives you the power to address them or walk away.

• Confirm all taxes are current and filed on time

• Review tax returns for any unusual line items or inconsistencies

• Ensure coverage is in place for the transition period: Professional liability (E&O), Workers’ comp, Cyber/data breach or tech liability

• Ask about any pending or historical legal issues

• Review all outstanding loans and debt obligations

• Confirm payoff dates, amounts, and repayment terms

• Check for liens on assets — and whether UCC filings exist

Debt and liens might seem like details, but they can shape your financing path— or slow it down — depending on how they’re structured.

Operations

When you buy an agency, you’re stepping into its people, systems, and culture — not just its book of business. Visit the office, meet the team, and get a feel for how things run. The goal is to see whether daily operations will fit easily into your world — or need a full reset.

Geography, Location & Property

Location and assets impact retention, staffing, and costs. Make sure they align with your growth plans.

• Is the office in a strong or strategic location?

• Will you consolidate sites or continue operating from multiple locations?

• Is the property leased or owned — and will the lease transfer to you?

• Which hard assets are included — furniture, phones, signage, etc.?

• Will you negotiate for computers, tech equipment, or software licenses?

Real estate and assets may seem secondary, but they can create real costs — or real opportunity — depending on how well they fit your vision.

Employment & Management

You’re not just acquiring a book — you’re inheriting a team. Understand who’s coming with the deal and how they’ll fit into your structure.

• Will you need to hire, lay off, or restructure staff?

• Who are the top performers — and how can you retain them?

• Are key client relationships tied to specific team members?

• Will the seller assist with warm handoffs to staff, clients, and carriers?

• Do employment contracts, compensation plans, or benefits need to be reviewed?

Staffing can directly affect retention, revenue, and even your eligibility for certain insurance agency loans for independent agencies. Understanding the team structure is essential to a smooth, funded transition.

Technology & Intellectual Property

Technology can be an asset or a liability — depending on how modern, secure, and compatible it is. Make sure the systems you’re inheriting won’t hold you back.

• Are client files stored electronically, on paper, or both?

• Is the agency’s tech stack compatible with yours — or will it need replacing?

• Are software licenses, logins, and permissions transferable?

• Is there adequate coverage for data security, system breaches, or tech disruptions?

When applying for insurance agency acquisition financing, lenders often assess how well an agency’s technology supports its book. Outdated systems can affect both efficiency and loan approval.

Network Affiliations

Technology plays a role in both agency performance and loan approval — if the systems are outdated, lenders may see added risk.

• Is the agency affiliated with a network, aggregator, or cluster?

• Will that affiliation transfer, expire, or require renegotiation?

• Could existing agreements affect your ability to get insurance agency funding or carrier approvals post-acquisition?

Some affiliations can be a major asset — others might create limitations. Either way, they play a role in how to grow your insurance agency after acquisition.

Strategic Fit

Complementary Books

You’re not just adding policies — you’re merging business models. Make sure the agency you’re acquiring fits with your existing book, team capacity, and long-term direction.

• Will the new book integrate well with your existing lines of business?

• Can your current staff support the additional workload without major restructuring?

• Will this acquisition open the door to new markets, products, or customer segments?

• Do you understand the needs and expectations of the acquired agency’s clients?

A well-matched book adds synergy — not stress. Strategic alignment now can fuel smoother onboarding and long-term retention.

Competitive Landscape

Every market has its own dynamics. Understand the competitive pressures the agency faces — and how you’ll position yourself after the deal closes.

• Will this acquisition expose you to new competitors or a more saturated market?

• Do you have a clear plan to market the newly acquired book of business?

• What has or hasn’t worked for the current owner in attracting and retaining clients?

• Will you maintain the acquired agency’s branding or transition clients to your brand?

Understanding the competitive terrain helps you turn the acquisition into a launchpad — not a learning curve.

Financing

Once you’ve found the right agency, it’s time to get your numbers in order. It’s never too early to connect with a lender — the structure of your financing will shape the deal, your cash flow, and how fast you can grow.

Arrange Basic Financials

Before you finalize the deal, make sure your funding strategy supports both the purchase and your future growth.

• Can you contribute a down payment — and how much?

• How much additional financing will you need to complete the acquisition?

• Is the seller open to financing part of the deal or structuring a buyout plan?

• Will your projected cash flow support the loan you expect to take on?

• Have you explored pre-qualification with a lender?

• Is the seller’s continued involvement beneficial to the transition or funding terms?

A good rule of thumb for insurance agency acquisition loans? 20% from you, 20% from the seller, and 60% from a lending partner.

For more insights into financing, check out our Insurance Agency Acquisition Financing Checklist.

Ready to Take the Next Step?

When you're ready to talk numbers, AgileCap is here to help. We specialize in insurance agency funding — offering fast, flexible insurance agency acquisition loans, insurance agency business loans, and tailored financing for insurance agents. As a direct lender built exclusively for the industry, we understand your goals and your challenges. Let us help you find the right insurance agency loan so you can grow on your terms.

Schedule a complementary 30 minute consultation with an AgileCap Lending Advisor to review your acquisition and lending requirements. Learn how we can customize a loan for your specific needs. The consult is easy and quick, and there’s no risk or obligation.