State Farm is one of the largest and most well-known insurance companies in the United States. Even though they are most famous for their personal lines of insurance, especially auto insurance, they also offer commercial insurance products, specially designed for small businesses. In this State Farm commercial insurance review, we will take a look at their policies, coverages, quoting, claims process, and customer service reviews to help you decide if they are the right insurer for your business.
State Farm Pros and Cons
Overall, the pros and cons of State Farm commercial insurance include:
AdvisorSmith Rating for State Farm
- Overall rating:  / 5 stars
- Coverage options: [3.5] / 5 stars (35% of overall rating)
- Cost:  / 5 stars (10% of overall rating)
- Ratings and complaints: [4.5] / 5 stars (15% of overall rating)
- Digital experience: [3.5] / 5 stars (20% of overall rating)
- Customer service:  / 5 stars (20% of overall rating)
State Farm Coverage Options
State Farm’s commercial insurance policies are designed to meet the needs of small businesses. They offer both standard and custom coverage options, so you can tailor your policy to fit your specific business needs if you work with a local agent from State Farm’s network. Some of the coverage options that are available include:
- Business owner’s policy: A BOP combines general liability and commercial property insurance into one policy, with the possibility of adding business interruption coverage. State Farm also allows its clients to bundle equipment breakdown or professional liability coverage into their BOP package.
- Equipment breakdown insurance: This covers repair or replacement costs if your business equipment breaks down due to a covered event, such as a power surge.
- Commercial auto insurance: This policy covers damage to vehicles used for business purposes, including cars, trucks, vans, and trailers. As State Farm is famous for its personal lines of insurance, this is one of the company’s signature products.
- Professional liability insurance: It protects you from lawsuits alleging that you provided faulty goods or services that caused harm to a client.
- Product liability insurance: This coverage protects you from lawsuits alleging that a product you sold caused injury or damage.
State Farm provides coverage for numerous professions and small business owners. Whether you are an accounting specialist, a graphic designer, or a painting contractor, chances are that you will find adequate insurance coverage with State Farm. However, if you are looking for insurance policies for your midsized or large company, State Farm might not be the best option for you, given that they specialize in small businesses and may not be able to cater to your needs.
State Farm Cost
The cost of your State Farm commercial insurance policy will depend on a number of factors, including the size and type of your business, your location, the amount of coverage you need, and more. To get a personalized quote, you need to contact one of State Farm’s local agents in your area.
When comparing commercial insurance policies, it’s important to look at more than just the price. Be sure to also consider the coverages and discounts that are available, as well as the insurer’s financial stability and customer service record. With that in mind, State Farm is a good choice for small businesses looking for comprehensive coverage at an affordable price.
State Farm Ratings and Complaints
State Farm has an A+ rating with the Better Business Bureau, but the company is not BBB accredited. It also has an AM Best rating of A++ and an AA Standard and Poor’s global rating. State Farm has a below-average complaint index rating with The National Association of Insurance Commissioners (NAIC), indicating that the company’s business policyholders haven’t filed many complaints regarding their claims.
J.D. Power ranks State Farm at a very high second place in its small business insurance customer satisfaction survey. The study analyzes responses from 1,994 small commercial insurance customers and ranks their insurance carriers accordingly.
Even though most State Farm commercial clients are satisfied with the company, there are also those who had a less pleasant experience. For example, Diane says:
“Do not do business with this company if you are in an animal services business. I paid for coverage for nearly 5 years on an Animal Services Policy. I just recently filed a claim for an injury incurred while grooming a dog. It was my first claim. My policy’s first line on list of coverages was Animal Injury. They refused to cover the vet bill stating that the coverage did not include injury to pets by me, the groomer. I was clear up front when I got the policy that that is what I most needed insurance for. So basically, I paid thousands of dollars for a bogus policy and me having to cover the vet bill. I spoke with my local agent and they just patronized me, kept telling me the claim was in review. I spoke with several people at a T**** office. They wouldn’t budge. You cannot count on this company to do what’s right…they are only interested in writing policies and collecting the money.”
State Farm Digital Experience
State Farm’s website is modern and user-friendly, and it offers basic information about the policies the company provides. However, you can’t get a quote for any of those policies online, as State Farm doesn’t provide that option. Instead, the website instructs you to contact a local agent or to have an agent contact you based on your area code.
On the plus side, State Farm offers a mobile app for policyholders where they can manage their policies, pay their bills, or contact their agents. Only auto insurance policyholders can file and track a claim through the app.
State Farm has a live chat option available on its website that gives both current clients and prospects a possibility to reach out to company representatives online at any time.
State Farm Customer Service
State Farm’s customer service is available 24/7 to help with claims and policy questions. Depending on the question you have for the customer service department, they could direct you to your nearest local agent to assist with your needs. You can reach out to the customer service department via chat, email, or phone, depending on your preference.
Given that people tend to share their negative experiences on the review websites, here is what Kimberly had to say:
“I have 3 accounts with State Farm (mortgage, auto & business). 2 of those (auto & Business), I have been getting a “NOTICE OF CANCELATION” every month. To eliminate any further notices, I made double payments several times on both accounts. When I recently spoke to headquarters and my agent’s office, neither could tell me what my balances are. How is that possible? I’m sure they have a very large accounts payable department. The suggestion I was given was to switch to autopay. That doesn’t work for me. My last call to State Farm was over 90 minutes long, I spoke to 4 people and I still don’t know what my balances are. Unbelievable!”
Available reviews on websites such as BBB and TrustPilot are very mixed and show that it’s mostly personal lines clients that are dissatisfied with the company’s customer service department. When we take J.D Power’s study into account, we have to conclude that most commercial insurance policyholders have a positive experience with the company’s customer service.
Other Services and Features That State Farm Offers
In collaboration with the US Bank, State Farm offers business banking services and cash management tools on its website. You also have the option of getting a State Farm Business Cash Rewards Visa Signature® Card or getting a business loan from US Bank through State Farm. If your business has employees, you can work out a retirement plan for them as part of your employee benefits package.
State Farm also offers many additional services to their individual customers. You can design your savings plan and retirement plan with State Farm and get help with your estate planning or investment options.
What Is the State Farm Claims Process?
State Farm is looking to make the claims process as quick and easy as possible by providing their policyholders with a list of information they should have ready when looking to file a claim. You are instructed to call the number listed on the website to file your claim because State Farm doesn’t offer the possibility of filing a claim online to their commercial customers.
After you file your claim, State Farm assigns an adjuster to your case who is in charge of handling your claim until it gets resolved. The company encourages you to go to your local agent for support during the claim process.
How to Get Quotes From State Farm
You can get an online quote if you are looking to buy personal insurance from State Farm, but the company doesn’t offer that possibility to their business insurance prospective clients. Instead, they instruct you to find a local agent and contact them, or have one contact you based on your zip code area. You’ll need to provide some basic information about your business, including the size, type, and revenue, to speed up the process.
Bottom Line: Is State Farm a Good Company?
Overall, State Farm is a good choice for small businesses looking for comprehensive coverage with a financially stable company. State Farm offers a variety of coverage options and discounts, and their customer service is available 24/7. However, some businesses may find that their rates are higher than other insurers. If you’re shopping for commercial insurance, be sure to get quotes from multiple insurers to ensure you’re getting the best coverage for your needs at the best price.
Alternatives to State Farm
If you’re not sure State Farm is the right insurer for your business, be sure to compare quotes from multiple companies. We recommend that you read our reviews on other major business insurance carriers to see how AdvisorSmith ranks those companies when it comes to their coverage options and other ranking factors.
If you are a midsize or large business owner, chances are that you won’t be able to find satisfactory coverage for your business with State Farm. You should consider looking into alternatives, such as The Hartford, Travelers, or Nationwide, for example, and compare their rates and coverage options to find what’s best for your company.