State Farm Small Business Insurance Review

Finding the right insurance company for your needs is every bit as important as choosing the right type of insurance coverage. And it’s hard to break down a single “best small business insurance company” because different companies have varying needs from insurers.

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That’s why we put together our guide to the top small business insurers in seven different categories to help your business find the right insurance company.

State Farm topped our list as the insurer best-known for industry-specific business insurance policies. But is this the best insurer for your small business?

Which Small Business Insurance Policies Does State Farm Offer?

With State Farm, small business customers have access to a wide variety of policies, including these popular coverages:

  • Business liability: This type of insurance protects your business from third-party bodily injury or property damage claims, as well as matters of libel and slander.
  • Commercial property: If you own or rent physical space for your business, or if your company uses equipment in its operations, this policy provides coverage for these assets.
  • Business Owners Policy (BOP): State Farm’s BOP includes both business liability and commercial property coverages into one convenient policy. However, State Farm does not offer business interruption insurance, which most competitors include in a BOP.
  • Workers’ compensation: If you have employees, your state requires you to have workers’ comp to protect them from injuries and illnesses (unless you’re in Texas, the only state that doesn’t require it).
  • Commercial auto: If you own or rent vehicles for your business activities, you should protect them with commercial auto insurance policies.
  • Professional liability: Does your business operate in a licensed profession (such as for doctors, lawyers, chiropractors, etc.)? If so, professional liability insurance will protect you against professional errors, which is why this is also sometimes referred to as errors and omissions insurance.
  • Commercial umbrella: An umbrella policy extends the limits in your existing liability insurance policies.

Interestingly, State Farm does not offer some relatively common coverages like general business interruption, cyber, and crime insurance. However, this insurer more than makes up for it by providing an extensive selection of industry-specific policies, with insurance plans available for businesses in more than 300 industries.

State Farm Small Business Insurance Review

State Farm is Incorporation Guru’s top overall pick for the company with the best industry-specific policies among small business insurance providers. Let’s dig into the details to find out why and determine if this is the right company to provide your small business insurance policies.

Company Background

State Farm recently celebrated 100 years in business, as this company first opened its doors way back in 1922. State Farm has a ton of experience but unfortunately lags well behind the competition when it comes to modernizing its operations. We were surprised to learn that State Farm still doesn’t provide online quotes, even though most competitors have offered quotes on their websites for years now.

Selling Points

We’ve already mentioned that State Farm has more industry-specific small business insurance policies than the competition, but it can still be surprising to see how many of these plans State Farm really offers. In fact, State Farm has more than 300 insurance policies tailored to individual industries, from accountants to window treatment stores and all points in between.

In addition, State Farm has some of the best customer satisfaction ratings in the industry, according to J.D. Power. In its 2021 U.S. Small Commercial Insurance Study, J.D. Power ranked State Farm second among all small business insurers for customer satisfaction, trailing Allstate by just 0.2%.

While we’ve already mentioned the lack of online quotes as a negative attribute, there is a positive flipside. State Farm has local agents in every corner of the nation, and these experts can help you find the ideal insurance policies for your needs. While it might be a bit more hassle to get in touch with a local agent, you may find that their expertise makes it worth your while.

Pricing Info

Small business insurance premiums can vary significantly from insurer to insurer, as well as from industry to industry. With State Farm, we’ve found that small business policies have roughly average pricing compared to other major insurers. There are some smaller online-only insurance companies that offer better rates, but State Farm is right in line with what you’d expect from a legacy insurer.

Our Final Thoughts

State Farm is our top pick for small business insurance customers seeking a company with industry-specific small business insurance policies. The fact that it has a spectacular J.D. Power score for customer satisfaction doesn’t hurt either!

With a broad selection of business insurance policies and a ton of experience, we wouldn’t hesitate to recommend State Farm to our family and friends.

Still, if you want to take a look at our recommended insurers for other categories — such as the best options for commercial auto insurance, fast claims payment, and more — take a look at our complete guide to the best small business insurance providers.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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Written by Team ZenBusiness