What is my insurance agency worth?

Insurance agencies have one of the highest revenue multiples on main street (1.52× on BizBuySell) because commissions renew every year. Buyers price on owner earnings and then check how much of the book renews and whether the carrier contracts transfer.

Avg SDE multiple

2.87×

Typical range

1.88–3.44×

Avg revenue multiple

1.52×

Median sale price

$500K

BizBuySell industry row: Insurance Agencies, plus BizBuySell's insurance-agency sold-business quartiles. Range is BizBuySell's sold-business lower to upper quartile (median 2.7×). Median sold business: $322,643 revenue, $180,000 owner earnings. Source: BizBuySell — Business Valuation Multiples by Industry (businesses sold Q3 2021–Q2 2026); BizBuySell — Insurance Agency Valuation Benchmarks (sold 2021–2025).

Value your insurance agency

Let's estimate what your business is worth. Seven quick questions, no email needed.

Trade: Insurance agency ·

Which state is it in?

Worked example

Hypothetical. An independent property and casualty agency near BizBuySell's median sold agency (about $323K revenue and $180K owner earnings). About 90% of commissions are renewals; two licensed CSRs service the book.

Revenue $325,000, owner earnings (SDE) $180,000, 15 years, about 90% recurring, “I manage, my team does the work”.
Start at the published 2.87× average.
Owner involvement: I manage, my team does the work: +0.15×. Buyers pay more when the business runs without the owner.
Recurring revenue 60%+: +0.25×. Contracts and memberships make next year's revenue predictable.
15 years in business: +0.10×. Long, proven history.
Adjusted multiple 3.37× × $180,000 = $607,000, range $400,000 – $729,000.
Revenue cross-check: $325,000 × 1.52× = $494,000.

What raises the price

High retention on renewal commissions
A diverse book across carriers and lines
Licensed producers and CSRs who will stay
Commercial lines and bundled policies
Clean agency-management-system data

What lowers it

The owner holds most client relationships
Concentration in one carrier, one large account or one line
Captive-agency contracts that limit who can buy
Falling retention or a shrinking book

Calculating SDE for a insurance agency

Start from net profit on your tax return or P&L, then add back:

Owner salary and payroll taxes
Owner's personal auto, phone and travel
Depreciation and amortization
Interest on loans
One-time E&O, legal or system-migration costs

Only add back what a buyer can verify. See SDE explained: how to calculate owner earnings and add-backs for a full walkthrough.

If there are two working owners, the second owner's salary usually stays as a cost, because a buyer will need to replace that person.

Questions

Are insurance agencies sold on a revenue multiple?

Revenue multiples are common shorthand for agencies, and BizBuySell's average is 1.52×. Most buyers and lenders still underwrite on owner earnings, so we start with SDE and show revenue as a cross-check.

Can I sell a captive agency?

Often only with the carrier's approval, and sometimes only to another agent of that carrier. Independent agencies with their own carrier appointments are easier to sell.

How this estimate works

We start from the published average multiple for businesses in this category that actually sold, adjust it for owner involvement, recurring revenue, track record and size, and apply it to your owner earnings. Read the full valuation methodology, including what we don't do.

Related trades

Compare other trades

Trade	Avg SDE multiple	Avg revenue multiple	Median sale price	Basis
Plumbing	2.61×	0.69×	$699,000	Trade row
HVAC	2.83×quartiles 1.99–3.33×	0.60×	$750,000	Trade row
Electrical	2.77×	0.63×	$1,009,000	Trade row
Landscaping	2.49×	0.72×	$449,950	Trade row
Pool service / routes	2.61×	0.83×	—	Sector average (no trade row)
Pest control	2.46×quartiles 1.69–3×	1.01×	$250,000	Trade row
Cleaning	2.25×	0.72×	$281,500	Trade row
Roofing	2.65×	0.59×	$750,500	Sector average (no trade row)
Auto repair	2.85×	0.65×	$430,000	Trade row
Salon / barbershop	2.10×	0.52×	$117,375	Trade row
Restaurant	2.18×quartiles 1.34–2.53×	0.39×	$220,000	Trade row
Daycare / child care	3.28×quartiles 1.94–4.03×	0.88×	$380,000	Trade row
Dental practice	2.75×quartiles 1.6–3.37×	0.76×	$350,000	Trade row
Gym / fitness center	2.54×quartiles 1.72–3×	0.70×	$204,000	Trade row
Insurance agency	2.87×quartiles 1.88–3.44×	1.52×	$500,000	Trade row
Accounting / tax / bookkeeping	2.27×quartiles 1.61–2.66×	1.08×	$450,000	Trade row
Moving company	2.52×quartiles 1.8–3.11×	0.63×	$350,000	Trade row
IT services / MSP	3.22×quartiles 2.2–3.87×	1.08×	$726,800	Trade row
Locksmith	2.35×	0.75×	$300,000	Trade row
Pet grooming	2.30×quartiles 1.38–2.51×	0.63×	$152,500	Trade row
Other main-street business	2.61×	0.83×	$350,000	General main-street range

Source: BizBuySell, Business Valuation Multiples by Industry, businesses sold Q3 2021–Q2 2026; quartiles from BizBuySell's per-industry valuation benchmark pages (sold 2021–2025). Pool and roofing use sector averages; “Other” uses the Service Businesses sector. Retrieved Oct 30, 2026.

Estimates for information only; not an appraisal or an offer. MainStreetKeys is not a business broker. Data retrieved Oct 30, 2026.