Last Updated 26 October 2018 | By:

State Farm Business Insurance Review

Are They The Best Fit?

State Farm Business Insurance_reviewWhen you need insurance for your business, it can be difficult to know which of the many carriers is the best choice. While shopping for insurance can be a hassle, it’s one or the most important steps in the early life cycle of any business. Getting the right coverages from a company you can trust is vitally important to your success as a business owner.

State Farm is one of the most recognizable names in insurance, but that doesn’t necessarily mean they’re a good fit for your company. This review will analyze State Farm’s business insurance policies to help you determine if their service is right for you.

Pros and Cons of State Farm Business Insurance

Pros

  1. State Farm has the best financial strength ratings of any major commercial insurer in the United States, making them an extremely safe bet when it comes to covering your claims.

  2. State Farm has over 18,000 agents all around the country, along with 343 full-service claim offices and 30 operations centers. No matter where you are in the United States, you are never far from an official State Farm representative.

  3. State Farm offers a tremendous variety of policies geared toward small businesses across a range of industries, making them a one-stop shop for small business insurance.

  4. Founded in 1922, State Farm now services over 80 million active insurance policies in the United States and Canada, giving them experience you can trust.

Cons

  1. State Farm doesn’t provide online quotes like many of their competitors.

  2. State Farm’s commercial insurance offerings are specifically tailored to small business, making them a less than ideal choice for midsized and large companies.

  3. More than 85% of all active State Farm customers are auto or fire policyholders, meaning commercial insurance is not their primary focus.

What Kinds of Business Insurance Does State Farm Offer?

State Farm offers a wide range of insurance coverage for small and home-based businesses:

  • Business Owner’s Policy (BOP)
  • Commercial Auto
  • General Liability
  • Professional Liability
  • Employment Practices Liability Insurance (EPLI)
  • Workers’ Compensation
  • Commercial Liability Umbrella
  • Individual Health
  • Group Health
  • Key Employee
  • Executive Benefits Plan

Additionally, State Farm tailors coverage to an impressive 209 different specific business types, encompassing the vast majority of small businesses.

How Can I Get a Quote From State Farm?

Unlike some of their competitors, State Farm does not provide quotes online. Instead, they have a “find an agent” tool that provides you with contact information for nearby agents. While not the most convenient system, with over 18,000 agents nationwide, finding one to help you should not be an issue.

How Does State Farm Rank for Financial Strength?

When choosing an insurance carrier, it’s important to consider their financial stability and strength. When you file a claim, you never want to be concerned with your insurance carrier’s ability to cover your expenses. Thankfully, that is not a concern with State Farm. They have some of the highest possible ratings across every reputable financial strength ratings firm.

A.M. Best Financial Strength Rating: A++ (highest possible rating)

“Assigned to insurance companies that have a superior ability to meet their ongoing insurance obligations.”

A.M. Best Issuer Credit Rating: aa+

“Assigned to entities that have a superior ability to meet their ongoing senior financial obligations.”

Moody’s Rating: Aa1

“Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.”

Standard & Poor’s Financial Strength Rating: AA

“An insurer rated AA has very strong financial security characteristics, differing only slightly from those rated higher.”

How Much Does State Farm Business Insurance Cost?

In general, it’s quite difficult to make fair cost comparisons among insurance providers. There are simply too many variables to consider. One provider may have a lower price for general liability insurance, while another offers cheaper property coverage. The level of benefits offered for the cost can also vary.

Generally speaking, though, State Farm maintains commercial insurance rates right around the industry average. While you may find more affordable prices elsewhere, State Farm will never be the most expensive option.

Customer Reviews

Customer reviews can be a difficult thing to qualify. It’s impossible to determine exactly which policy each reviewer holds and the specific circumstances behind their experience. This is particularly true for State Farm since the majority of their policyholders are individuals rather than businesses. Still, there is value in examining how a typical customer views a company since it can give you a glimpse into their general customer support reputation.

State Farm receives a fairly even mix of positive and critical feedback from their clients. Many clients have had excellent experiences throughout the claims process, while others have struggled to get the response or coverage they need.

While they have a high number of online reviews, the fairly even spread between positive and negative make it difficult to use these ratings to gauge the true customer experience.

Final Thoughts

Final ThoughtsOverall, State Farm earns a score of 3.7 out of 5. State Farm is one of the most instantly recognizable insurance brands in America, thanks to their extensive advertising campaigns. They’re also highly popular for several forms of individual policies, like car insurance or fire protection for your house.

That said, their fairly standard business insurance offerings don’t stand out among their competitors. Though not for everyone, State Farm can be a good option for business owners who already hold their personal insurance plans and would like to continue working with the same agent.

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