Insurance agencies
A buyer for your agency is buying the book. It will check whether the book is documented.
Independent agencies are being acquired steadily, usually by a broker platform assembling scale. What the buyer is paying for is the book, and it tests the book by reading the record: what was quoted, what was bound, what changed at renewal, and whether the client relationship is contractual or personal. Those are the same questions that carry exposure day to day. Verelume is designed to help your team find what the record says, with the sources attached, and to show where it says nothing.
The record
What your record already holds.
- Client applications and submissions
- Quotes and proposals
- Policies, endorsements, and declarations
- Renewal correspondence and coverage discussions
- Carrier communications and binders
- Certificates of insurance
- Claim-related correspondence
The questions
The questions worth answering.
- “What coverage options did we present to this client, and when?”
- “What did we advise about this exclusion or limit?”
- “What changed on this account at the last renewal, and why?”
- “What did the carrier communicate about this endorsement?”
- “When did the client request this change, and how did we respond?”
Key-person risk
When someone leaves, the reasoning shouldn’t leave with them.
Producers and account managers carry a great deal of client history in their heads. When one leaves, the accounts move to someone who has the files but not the context, the conversations, the advice given, the reasons behind coverage choices. Verelume is designed to make that history retrievable from the record so an account transition does not lose it.
High-stakes moments
When the record has to answer.
Errors-and-omissions exposure
If a client asserts they were not told about a coverage gap, the question is what the record shows was communicated. Assembling that from correspondence quickly, with citations, matters.
Renewals
Understanding what changed and why on an account across prior renewals helps the team serve the client accurately rather than starting from a blank page each cycle.
Account handoffs
When an account moves between producers, the incoming team needs the account's history, not just its current policies, to avoid missing context.
The published record
What the sources actually say, and what they do not.
Three independent publishers report on owner earnings for agencies of this size and their bands do not materially overlap. One qualifies its own figure, stating that it is derived from asking prices on active listings rather than closed deals, and should be read as a starting ceiling rather than a clearing price. That is an unusually candid disclosure and it is the reason we show the source rather than the number alone. It is worth reading against the third source, which reports the middle half of agencies actually recorded as sold and lands below the advisory band. Note also that the larger firms in this sector are priced on commission revenue or EBITDA by buyers who publish nothing, so the record thins out precisely where the transactions get bigger.
1.8x to 3.7x owner earnings
Insurance Agency Trader. Applies to property and casualty agencies under $1M of revenue, owner operated, derived from asking prices. updated 16 May 2026.
3x to 5x owner earnings
CT Acquisitions. Applies to agencies under $500K of revenue. verified 1 July 2026.
5x to 7x owner earnings
CT Acquisitions. Applies to agencies between $500K and $2M of revenue. verified 1 July 2026.
1.88x to 3.44x owner earnings, the middle half of recorded sales
BizBuySell. Applies to insurance agency businesses reported sold on BizBuySell, 2021 through 2025. data through 2025.
Verelume does not average these publishers or choose between them. Where they disagree, the disagreement is the finding.
What diligence concentrates on here
- Carrier appointments and whether they survive a change of control
- Book concentration by client and by carrier
- Retention and lapse history on renewals
- Commission schedules and contingent or profit sharing terms
- Producer agreements, and non-solicit terms on a sale
- Errors and omissions history and open claims
- Which relationships run through the owner personally
What Verelume does not do
Verelume does not make coverage determinations, give insurance advice, or interpret policy language for a claim. It helps your team find and understand what your own records say, with the sources attached, and flags where the record is unclear or conflicting. Coverage decisions remain with your licensed professionals and carriers.
Related use cases
See what your insurance agencie's record can answer.
Start with a founder-led Diligence Readiness Assessment, Founding price $5,500, with the Verelume platform included. See all three ways to engage.