Are you trying to scale your agency but stuck between hiring more licensed producers or bringing on administrative support? What if the real problem is not who you hire, but which tasks they are handling? Agency leaders often tell us this decision feels like a gamble.
At Lava Automation, we have guided hundreds of agencies through the same choice. With billions in premium supported and thousands of hours saved every week, we know what tasks require a license, where a virtual assistant creates leverage, and how to build the right mix of both roles.
In this article, you will learn where licensed staff are essential, where a virtual assistant adds the most value, and how agencies combine both to scale without compliance risk.
What tasks can only licensed staff perform?
Licensed employees are required by law to:
Explain coverage to clients
Make policy changes that affect premiums or coverage
Bind a policy
If it changes the coverage, it requires a license and carries legal risk for your agency if handled by unlicensed staff.
Most state Departments of Insurance enforce these boundaries. If unlicensed staff cross them, agencies take on all the liability. That can mean fines, audits, or even loss of license.
What everyday tasks can a virtual assistant handle?
The majority of the work that slows producers down does not require a license. That is where a virtual assistant makes the biggest difference.
Virtual assistants manage:
Renewal preparation and remarkets
Certificates of insurance
CRM and pipeline updates
Carrier follow-ups
Scheduling, reminders, and inbox management
Building reports
Following up on non-payment
These are the tasks that burn hours for producers without driving revenue.
How do virtual assistants take pressure off licensed staff?
Imagine a client receives a significant rate increase at renewal. Re-shopping carriers can take hours. Licensed CSRs, busy with calls and coverage explanations, often cannot get through the full list.
A virtual assistant can prepare quotes, update the CRM, and organize the file so that when the licensed producer steps in, the heavy lifting is already done. The producer focuses on advising the client and making the sale, not digging through paperwork.
This division of labor means renewals move faster, producers spend more time in front of prospects, and licensed staff avoid burnout from being buried in repetitive tasks. Over time, agencies that delegate these workflows to virtual assistants not only reduce stress on their team but also see measurable gains in client satisfaction and revenue growth.
How do costs compare between the two roles?
Hiring licensed staff carries significant costs:
Higher salaries tied to local markets
Benefits, payroll taxes, significant yearly pay increases, and workers' compensation
Longer ramp-up time and compliance training
Hiring a virtual assistant often avoids these overhead expenses. The best providers include training, benefits, and infrastructure in their pricing, so agencies pay only for productive hours.
Still, there are times when hiring licensed staff first makes sense. If your phones are constantly tied up with coverage questions or policy changes, a licensed CSR may be the stronger first investment.
How does training differ between licensed staff and virtual assistants?
Licensed employees need several months of training if they are new to insurance. They must learn compliance rules, carrier systems, and agency workflows.
Lava-trained virtual assistants ramp up faster because their training begins the moment they’re placed with your agency. Through Lava’s structured program, they gain hands-on experience in insurance workflows, CRM systems, and compliance boundaries while working alongside your team, shortening the time it takes to reach full productivity.
When should you hire a virtual assistant before licensed staff?
Look for these signs:
New business growth slows because producers are buried in administrative work
Licensed staff spend more time updating systems than serving clients
Your agency is at capacity and cannot take on more accounts
You don’t have the capacity to give each account the attention it needs at renewal
If your team starts to feel stretched thin, small frustrations can quickly turn into bigger problems. Missed details create tension, long hours lead to burnout, and staff morale begins to dip. These are clear signals that it is time to bring in help.
The smart move is to hire a virtual assistant before workloads reach a breaking point.
Agencies that act early see smoother onboarding and faster results.
How do the two roles work together inside an agency?
The best agencies do not choose between licensed staff and virtual assistants. They combine them into a workflow where each role stays in its lane.
A renewal process might look like this:
1. Virtual assistant gathers renewal data and prepares quotes
2. Virtual assistant updates the CRM and organizes the file
3. Licensed CSR reviews details for accuracy and compliance
4. Licensed CSR advises the client and finalizes the renewal
When both roles are aligned, agencies scale without slowing down.
Side-by-Side Comparison: Virtual Assistants vs. Licensed Staff
|
Factor |
Virtual Assistant |
Licensed Staff |
|
Compliance |
Handles unlicensed tasks only |
Required for coverage and binding |
|
Cost |
Lower - many virtual assistant providers like Lava include training and infrastructure in their pricing |
Higher - salaries, benefits, and payroll costs |
|
Training |
Insurance workflows completed before placement |
Longer ramp-up, compliance load |
|
Best Fit For |
Remarkets, admin, CRM, certificates |
Advising, selling, policy changes |
|
Impact on Growth |
Frees producers to focus on revenue |
Generates premium directly |
How should agency leaders make the final decision?
At the end of the day, every agency needs licensed staff. But not every workflow does. When administrative tasks bog down your licensed team, revenue and retention suffer.
That is why the most successful agencies add virtual assistants early, giving producers more time to sell and reducing compliance risk. At Lava Automation, we train virtual assistants to understand agency systems.
If you are struggling to scale and your team is overloaded, it is time to explore how we can help.
Read: What Can a Virtual Assistant from Lava Automation Do to learn exactly which tasks our virtual assistants can handle.
Frequently Asked Questions
Can a virtual assistant fully replace your licensed staff?
No. Only licensed employees can explain coverage, make policy changes, or bind a policy.
What is the biggest benefit of hiring a virtual assistant first?
You remove the administrative burden from licensed staff so they can focus on revenue-generating tasks.
Is it cheaper to hire a virtual assistant than licensed staff?
Yes. Lava covers training, benefits, and infrastructure at a fraction of the cost of US employees.
When should an agency add licensed staff instead?
When your team is handling high volumes of client-facing or compliance-heavy tasks.
Can a virtual assistant ever explain coverage to a client?
No. Virtual assistants are trained to recognize compliance boundaries and escalate those requests to licensed staff.
