State Farm vs The Hartford

Verdict

State Farm and The Hartford both chase the main-street small business, but they come from different directions. State Farm is a personal-lines giant, a mutual owned by its policyholders, whose commercial book of $9.35 billion in 2025 premiums (No. 12) sits inside a $115.28 billion all-lines business. The Hartford is a commercial specialist, ranked No. 6 at $14.61 billion (NAIC data), with business insurance as the core of what it does.

The sales channel is the clearest difference. State Farm sells only through its own captive agents, who can quote only State Farm, though you can start a BOP or commercial auto quote online. The Hartford sells through independent agents and brokers, and small businesses can also quote online or by phone, so you can compare with other markets through an agent. The Hartford is the No. 1 U.S. workers' comp writer and No. 2 in package policies. State Farm is No. 4 in package policies, No. 3 in farmowners and No. 6 in commercial auto.

Product breadth follows. State Farm's shelf stops at small business: contractors, farms, associations and nonprofits, and it does not market middle-market, large-account or specialty programs. The Hartford carries on up through accounts over $10 million in revenue and has Navigators and Maxum for specialty and E&S. On ratings, S&P rates State Farm Mutual and its core subsidiaries AA, per State Farm; The Hartford holds A+ (Superior) from AM Best (July 2026) and AA- from S&P. AM Best rates the State Farm Group A+ (Superior), lowered from A++ in November 2025, so the two now share AM Best's grade. Price depends on class and loss history, so get an outside quote either way.

Choose State Farm if

• You already insure your cars, home or life with a State Farm agent and want the business in the same office.
• You are an artisan contractor, small shop, landlord of a small building, farm or ranch, or a condo or homeowners association.
• You want self-service certificates at coi.statefarm.com for your BOP, contractors policy or commercial auto.
• A local agent relationship matters more to you than having several carriers compared.
• You operate in a state where State Farm is taking new business in your class; ask first.

Choose The Hartford if

• Workers' comp is your major cost, and you want the largest U.S. writer.
• You want an independent agent to put your account in front of several carriers.
• Your business may outgrow a small business shelf: over $10 million in revenue, umbrella, D&O, cyber, surety or ocean marine.
• You are in California, where State Farm General stopped writing new policies in May 2023.
• Your risk is unusual and may need E&S paper through a wholesale broker.

Key differences

Before choosing, ask the State Farm agent which company issues the policy and whether it is available in your state, and ask The Hartford's agent which pooled company is on the quote. Compare forms and endorsements, not only premium, and ask how claims in your class are handled. Existing California commercial policies at State Farm carry a temporary 0.26% supplemental fee for one renewal starting January 1, 2026. See independent agent, broker, captive agent or direct?, how to judge a business insurance company and the business insurance quote comparison worksheet.