2023 State Farm Business Insurance Reviews, Claims & Coverage

State Farm business insurance
Credit: StartupSavant

Risk-taking is a significant part of running a business and insuring your business is like going to war clothed in armor. If you own a business, it’s only likely that you would want to insure it against possible damages like theft, razing, and other forms of destruction. In other words, insurance prepares you for potential crises, financially. Amongst various insurance providers around the globe, State Farm business insurances have made waves in providing suitable insurance coverages for business owners, most especially small business owners. You may be wondering why State Farm? And what distinguishes them from other business insurance providers? Let’s find out!!!

Is State Farm Business Insurance the Best for My Business?

Knowing you have to have business insurance for your business is one thing, finding the right insurance provider is another. The process of choosing a good insurance provider can be tedious and energy-draining. If you have ever thought of using State Farm services for your business insurance, then this article is for you. This article would provide you with necessary information on things you need to know about State Farm business insurance and if it is suitable for your business or not; business insurance cost, coverages, and what people who have used their business insurance services think.

About State Farm Business Insurance

State Farm is undeniably one of the largest insurance provider companies in the United States. . George J Merchele founded the company in Illinois, the United States in 1922. And since its inception, the company has been running efficiently in providing insurance services and numerous insurance coverages to people

In addition to insurance, State Farm renders services in investing, and banking. The banking sector started in 1999 and is handled by their state farm financial services. State Farm has a host of subsidiaries and over 300 offices throughout the United States and Canada. They currently have 18000 staff.

Insurance policies available on State Farm include:

  • Home and property insurance
  • Life insurance
  • Health, disability, and liability insurance
  • Small business insurance
  • Vehicle insurance
  • Renters Insurance

A recent review on State Farm shows they are the largest auto insurance provider in the entire united states. In addition to that, they are topping the chart as the highest home insurance provider in the state, with them taking about 18 percent of the total market share.

What Business Insurance Coverages Do State Farm Render?

State Farm business insurance provides various business insurance coverages to business owners such as disability insurance, workers’ compensation insurance, etc. Additionally, State farm is among the few insurance companies that offer professional liability insurance and property insurance coverage.

This gives them an edge over some other insurance companies. It is equally sufficient to state that State farm business offers these business insurances at low rates and has been praised for efficient and incredible customer service. State farm business insurance is ideal for small business holders as most of their business insurance coverage is suitable for small businesses. The various businesses insurance coverages they offer are;

  1. Workers compensation; This insurance covers employees over injury during work. This seemingly takes care of medical bills in case of an accident. Disability and death benefit equally apply. It will ensure you don’t waste all the company’s profit treating injured workers. A company that has workers’ compensation insurance would most likely have more productive workers.
  2. Property insurance; Imagine a firebreak gutting down the entire building of a company. Without insurance, the tendency of starting from scratch is slim. This is where property insurance comes in. It covers the company’s equipment, furniture, signage, etc. in case of destruction or theft.
  3. Professional liability insurance; When companies provide services or goods to unsatisfied customers, they might file charges against the company. This insurance policy protects customers from such charges or lawsuits
  4. Commercial auto coverage; This insurance policy covers business vehicles in case of an accident.
  5. Business Owners Policy; This insurance is an umbrella term for three insurance policies. They are general liability insurance, commercial property insurance, and business interruption insurance.
  6. Inland Marine; Goods that are transported on land are covered with an inland marine insurance policy.
Note; You can buy insurance policies under BOP  individually if you believe your business does not require the three; However, buying the BOP will cost you less.

State Farm Business Insurance Cost

There is no specific price for the cost of business insurance in State Farm. This is because the prices are dependent on a number of factors. These factors may include; the type of business insurance policy your business needs, the location of your business, the risk associated with different businesses and industries, the history of the business owner’s claims, likewise the number of employees.

This means that unlike other types of insurance, giving an approximate amount of the insurance cost for business insurance would be impossible. Also, it’s important to know that state farm does not provide information on the average cost of their insurance policies or quotes online.

How do I get a quote from State Farm?

One of the disadvantages of insuring with State Farm is that, in contrast to other insurance companies, State Farm does not issue quotes to potential customers online, therefore to get a quote, you need to get in touch with a representative near you,

To get in touch with a representative, you’d have to visit their website. Log in to the website, and look for the “find an agent” option; this feature will give you a list of agents and you can pick the one closest to you and get in contact. Alternatively, visit the State Farm website, type in your ZIP code, and get connected to an agent near you. This exercise may prove inconvenient to some people.

State Farm Business Insurance Reviews: 2022

State Farm business insurance is reputable for offering an assortment of insurance coverages for business owners, large and small. However, state farm business insurance has more suitable insurance policies for small business owners.

The company has been in practice for over 100 years and has well over 18000 agents worldwide that help business owners analyze, and guide them through what insurance policy would help their businesses.

Despite having affordable coverages for the policyholders, State Farm provides juicy discount sales on special days.

It is worth noting that despite these wonderful reviews on State Farm business insurance, some aggrieved policyholders don’t quite think as much. Some customers who have been insured under State Farm have reviewed the company to be nonchalant, deficient in communication, regularly unprofessional, fraudulent in releasing claims, and lacking in good customer care relationships.

For instance, Jess, an insured with State Farm wrote:

I have been with State Farm for many years and have been in business on my own for over 25. In my experience, whenever an insurance company uses Lowry and Associates to do their audits, I owe money. When State Farm did not use Lowry and Associates I broke even or owed a little. This last audit performed by Lowry and Associates showed I owed over $1,500. I paid overtime during Covid to keep my employees and by law, it was not supposed to be considered a part of the audited payroll under special circumstances.

Original review: July 12, 2022 (ConsumerAffairs)

Scott, another policyholder equally gave his review on State Farm. He wrote:

“My family had a medium-sized Auto repair business for over 40 years, with State Farm as our insurance. In 1983, we had a fire, and the lowest quotation for the damages was 260,000 dollars. 5 months later a State Farm adjuster showed up with a check for 24,000 dollars. My dad said WTF!!! He said sue us!!! I know 2 businesses right now that are going thru the same thing right now. Do not trust State Farm!! Pure Scum!!!”

Original review: Sept. 16, 2019 (ConsumerAffairs)

State Farm business insurance might have its great reviews and customers who think they deserve a 5-star rating but they have equally had their share of bad reviews from unsatisfied customers which perhaps is inevitable.

Pros and Cons of State Farm Business Insurance

The following are major pros and cons of opting for State Farm business insurance.

Pros

  • Offers a wide range of business insurance coverages for business owners
  • Well equipped with human labor as they have about 18000 agents and representatives worldwide
  • Amongst the few insurance companies that offer professional liability insurance to business
  • With about 100 years of practice, they would be well experienced.
  • Have gotten many good reviews from policyholders.

Cons

  • Have some bad reviews.
  • Online activities are limited
  • Quotes are unavailable online

State Farm Business Claims

It’s important to reiterate here that if you are looking for an insurance company with verse activities online, state farm might just be a bad idea.

When filing for a claim in state farm, just like getting a quote, the process starts with contacting an agent who would guide you on the process required to file a claim.

After filing a claim, State Farm reviews the claim and responds accordingly.

Conclusion

State Farm provides a wide range of business insurance options, from more general products like commercial auto insurance to more specialist options like directors and officers insurance for nonprofits.

If you’d want a more personalized experience for your company, State Farm could be a suitable fit. There is a network of State Farm insurance brokers all around the country who help people buy insurance from State Farm. No policy can be bought or even quoted without first talking to an agent.

However, consider other suppliers if you wish to manage your business insurance online. Small business owners who have insurance through State Farm can do things like view a list of their policies, make payments and get in touch with an agent, but that’s about it. Rather than submitting paperwork online, you’ll need to call your agent to complete tasks like claims tracking.

State Farm Business Insurance FAQs

Do State Farm deny claims?

Like many other insurance companies, people insured with state Farm have accused them of denying and delaying claims.

Does any State Farm business insurance coverage cover flood incident?

In State Farm, their business insurance coverage does not cover flood incidents. However, if you stay in an area where flooding is a threat, you could purchase their flood insurance policy.

What does a Business Interruption Policy cover?

Business Interruption Policy is one of the insurance coverages under a BOP. In a situation where your business has to temporarily stop or slow down, this policy covers the lost income during this period.

What's the criteria for purchasing Buisness Owner's Policy

Typically, only small businesses with fewer than 100 employees and less than $ 5 million in annual revenue are eligible to purchase the business owner’s policy.

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