State Farm Business Insurance

8.5/10
Very Good

19998 reviews
on 3 websites

Key Features

  • Several forms of coverage
  • Potentially wide scope of coverage
  • Strong workers’ compensation coverage
  • Fidelity & surety bonds
  • Easy-to-use website
  • Online claim tracking tool
  • 24/7 claims service by phone or online
  • Customer satisfaction & financial stability

Pricing

State Farm’s rates are determined by several factors. These factors include the size of your business as well as the scope of the coverage you need from them. Their policies can range from $22 per month to over $180 per month. These are typical rates for the business insurance industry. Their rates are as cheap or expensive as the width of the coverage you want to purchase from them.

Things To Note

While State Farm doesn’t offer unique and attractive features like some of their competition does, they offer fair prices and coverage by industry standards.

 You should note that State Farm has seasonal increases in insurance rates. This is because the company provides more coverage to businesses during peak business seasons. 

 One of the more worrying things to note is that State Farm receives complaints from customers that State Farm unduly denied their claims.

The company also isn’t as generous at offering discounts as their competition. You can likely get a better deal at another company where discounts are more liberally applied.

In A Nutshell

State Farm is a business insurer that offers a very wide and customizable scope of coverage. They cover most of the problems that your business could potentially face. The company does lack in some areas where other business insurance providers thrive. That being said, there are no particularly serious shortcomings that they face relative to their competition.

 The strongest benefit that State Farm offers is the remarkably wide scope of its coverage. They are known to cover all kinds of problems, including the disappearance of business property. They also cover legal fees, medical treatment, and death, up to a certain amount.

 

Worker’s Compensation

 

State Farm offers coverage for employees who suffer injuries while on the job. This coverage includes medical compensation and any lost wages due to the injury. Furthermore, this form of coverage offers you legal protection in the case of a workplace injury. This form of coverage can cover the legal and medical expenses that result from a workplace injury to a certain extent.

 

Bonds

 

State Farm offers both surety bonds and fidelity bonds. These two options can prove quite useful in specific situations. For example, fidelity bonds can be issued as a guarantee against losses caused by employee dishonesty. These can become an important part of an insurance policy because they cover things that aren’t covered by liability coverage or even property coverage.

 

Multiple Liabilities Covered

 

As a general small business insurance provider, State Farm’s coverage is wide. The company offers professional liability, which is invaluable to certain businesses. For example, if you’re offering professional services as a core part of your business, clients have high expectations for the results you deliver for them. However, sometimes there are disagreements or errors that lead to a client losing money. Whether or not these losses are due to negligence on the part of the service provider or the client, professional liability insurance protects your business when clients lose money as the result of errors, misinterpretations, errors, a breach of confidentiality, or even a simple lack of skill.

State Farm also offers coverage for business vehicles. They offer business auto coverage that covers your commercial vehicles. You can insure individual vehicles, or an entire category of vehicles if your business has several trucks, for example.

Online Claims Resource

 

If you need to make or track a claim, State Farm has a useful website where you can handle most of your business with them. You can get a quote, buy a policy, and make a claim online. Of course, if you’d rather call to make a claim, they offer 24/7 phone service as well. However, you can handle all your business on State Farm’s website if you wish.

 

The Problems: Undue Denial

 

The most outstanding problem that customers have with State Farm appears to be claims being unduly denied. While wait times and frustration are common when dealing with any insurance company, having a claim denied will always be an infuriating experience. In order to avoid these problems, you should prepare as much information as possible when making a claim. This rule should be followed regardless of the company you choose for business insurance. 

 

The Final Word

 

State Farm is a reputable, mainstream provider of business insurance. Their policies are well balanced, and their rates are fair and align with industry standards. They differ from other insurance companies in a few areas without standing out too much.

 

Regardless of the specific benefits and drawbacks that come with working with State Farm, they are among the largest and most reputable insurance companies that serve small businesses. While they don’t offer many specific benefits for specific industries, they’re worth considering if you’re looking for a small business insurer.

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