Farmers Insurance business insurance

Overview

Farmers Insurance is one of the country's largest personal-lines groups, and it also runs a sizable small-business book. The Farmers Insurance Group ranked No. 24 among U.S. business insurers by 2025 commercial lines direct premiums written, with $5.87 billion, based on NAIC market share data, out of $29.59 billion in premium across all lines. It ranks sixth nationally in fire, seventh in allied lines and tenth in commercial multiple peril, the line that holds businessowners and package policies. Part of the fire and allied lines figures likely reflects the residential landlord and dwelling fire policies Farmers sells alongside its homeowners business, so the commercial total overstates its pure small-business book somewhat.

The group's core is three reciprocal exchanges owned by their policyholders: Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange. Farmers Group, Inc., a subsidiary of Zurich North America Insurance Group, manages them as attorney-in-fact and earns fees for non-claims services; Zurich has no ownership interest in the exchanges themselves. The NAIC group also includes Mid-Century Insurance Company, the Farmers state companies, Foremost, Bristol West, 21st Century, Economy and Toggle. Business policies on farmers.com are underwritten by Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange and Mid-Century.

Farmers sells mainly through exclusive agency owners, the captive agent model. Eric Coleman is president of business insurance. California, Texas and Washington together produced more than 45% of the group's direct premium in 2024.

History

John C. Tyler and Thomas E. Leavey founded Farmers in 1928 in a one-room office in downtown Los Angeles, selling auto coverage to farmers and ranchers they considered better risks. The company later added life insurance by buying New World Life of Seattle in the 1950s. British American Tobacco bought Farmers Group, Inc. in 1988, and Zurich acquired it in 1998.

Most of the modern group came through acquisitions on the personal side. The 21st Century purchase closed on July 1, 2009. In December 2020 the exchanges and Farmers Group agreed to buy MetLife Auto & Home, which brought about 2.4 million policies and now operates as Farmers GroupSelect. In November 2023 Farmers Group agreed to buy three wholesale brokerages from the exchanges (Kraft Lake, Western Star and Farmers General Insurance Agency) for $760 million; they place risks outside the exchanges' appetite with other insurers.

In 2026 the business unit is leaning back into its home state. On July 31, 2026, Farmers filed a revised small-business rating plan in California under the state's Sustainable Insurance Strategy, with a statewide average rate increase of just over 15% and a commitment to write more than 1,500 new businessowner and business property policies in wildfire-distressed areas over two years. It proposed a February 1, 2027 effective date, subject to regulatory approval. In March 2026 Farmers also set a goal of adding about 1,700 new agency owners within a year.

Business insurance products

Farmers' business offering is a small-commercial toolkit sold by the same agent who writes the owner's home and car:

• Businessowner's policy and property: building, contents, inventory and business income, often packaged as a BOP. See What is a business owner's policy (BOP)?.
• General liability, umbrella and crime: premises and operations liability, excess limits, and employee and third-party theft cover.
• Commercial auto: owned, leased and rented business vehicles, with a refreshed commercial auto program in 2026. See commercial auto insurance: what it covers and what it leaves out.
• Workers' compensation: paired with the BOP and auto for small employers, with a PPO network for first treatment.
• Business life insurance: life coverage aimed at employee retention and business succession.
• Loss control: safety and loss-prevention services for policyholders.

As of its 2024 statutory filing, Farmers also wrote commercial auto coverage for Uber and its independent-contractor drivers during rideshare activity, which adds to its commercial auto premium. It does not advertise professional liability, cyber or large-account programs on its business pages.

Who it insures

Farmers says its business insurance targets select small and medium-sized markets: automotive trades, artisans and service contractors, wholesale and distribution, habitational, restaurants, retail and service, and commercial real estate. Its industry pages cover apartments, auto service and repair, commercial real estate, home building and service contractors, homeowners associations, manufacturing, offices, restaurants, retail stores and wholesale. See Landlord insurance, Auto repair shop insurance and Restaurant insurance.

Larger or hazardous accounts fall outside that appetite. Availability of each product varies by state, and Farmers' heavy California exposure means wildfire underwriting matters. The 2026 filing commits new capacity to wildfire-distressed areas, where many owners have been relying on the state's FAIR Plan; see FAIR Plans and residual markets for commercial property.

How to buy

Most business policies are sold and serviced by a Farmers exclusive agency owner, found through the agent locator on farmers.com. The business page also lets you start a quote by ZIP code, which routes into Farmers' quoting system and then usually to an agent. The general sales line is 888-317-3285. Commercial premiums can be paid online, by phone at 855-323-5350 or by mail. Because Farmers agents represent one company group, a business owner who wants several carriers compared will need an independent agent or broker instead.

Claims

Business customers can report a claim online in about five minutes and track it through the online claim portal, or call the Farmers Claims Center at 800-435-7764, staffed 24 hours a day (877-732-5266 in Spanish). For property losses, Farmers may estimate from photos, dispatch 24/7 emergency services or refer you to a Farmers-certified contractor with a job-completion guarantee and five-year workmanship warranty. Commercial auto claims can use in-network repair shops, with roadside and glass handled through separate links. Workers' comp claims use the same claims center, with a PPO network search for first treatment.

Financial strength and ratings

AM Best affirmed the A (Excellent) financial strength rating of the members of Farmers Insurance Group, with a stable outlook, in August 2025, citing very strong risk-adjusted capitalization offset by elevated catastrophe exposure and reliance on about $2 billion of surplus notes. Farmers' 2024 statutory MD&A lists S&P at A (Strong) and Moody's at A3 (Good) as of 2023. The exchanges reported $28.4 billion of gross written premium and about 12.8 million policies in 2024.

Strengths and weaknesses

Farmers suits a small business owner who values one local agent for business, home and auto. It is not built for complex risks, and its ratings are a notch below the strongest national commercial carriers.

• Strengths: National top-10 positions in fire, allied lines and commercial multiple peril; a large exclusive-agent network that is growing in 2026; 24/7 claims line, online claim filing and certified-contractor program; a renewed push to write small-business property in California's wildfire areas.
• Weaknesses: A (Excellent) from AM Best with surplus-note reliance noted; exclusive agents cannot shop other carriers; narrow commercial menu with no advertised professional liability or cyber; heavy catastrophe exposure in California, and a proposed average California business rate increase of just over 15% for 2027.

Owners comparing Farmers usually look at State Farm, Allstate, Nationwide and American Family, which also sell small-business coverage through captive agents.

How to contact Farmers Insurance