State Farm business insurance

Overview

State Farm is best known for car and home insurance, but its agents also write a large small-business book. The group was ranked No. 12 among U.S. business insurers by 2025 commercial lines direct premiums written, with $9.35 billion, based on NAIC market share data. Commercial lines are a small slice of a $115.28 billion all-lines book, yet State Farm ranks third nationally in farmowners, fourth in commercial multiple peril (the package and business owner's policies that make up most of its commercial premium), sixth in commercial auto and ninth in inland marine.

The parent, State Farm Mutual Automobile Insurance Company, is a mutual company owned by its policyholders and based in Bloomington, Illinois. Business policies are issued by several affiliates, mainly State Farm Fire and Casualty Company and State Farm Mutual, with separate companies for California (State Farm General), Florida and Texas (State Farm Lloyds and State Farm County Mutual). Everything is sold through State Farm's own agents, independent contractors who represent only State Farm. In early 2025 the company counted more than 19,200 agent offices and over 62,000 employees. Jon Farney has been CEO since June 2024.

History

State Farm was founded in 1922 in Bloomington as a mutual auto insurer and has operated for more than a century. It added fire and life insurance companies over time, and says it has served Missouri since 1925 and California since 1928. State Farm General began writing property and commercial coverage in California in 1998, so the group could manage that state's property risk and regulation in a separate company.

The last few years have been dominated by catastrophe losses and California. The State Farm property-casualty companies reported a combined underwriting loss of $14.1 billion on $87.6 billion of earned premium in 2023 and $6.1 billion on $103.0 billion in 2024. In May 2023, State Farm General stopped writing new policies in California, and in March 2024 it moved to nonrenew 30,000 homeowners policies. The January 2025 Los Angeles wildfires produced an estimated $7.6 billion of direct losses for State Farm General. The California commissioner approved an emergency interim rate increase in May 2025, and State Farm Mutual put $400 million into State Farm General through a surplus note in June 2025.

Results turned in 2025. State Farm Mutual reported a $1.5 billion underwriting gain and $8.2 billion of net income on a standalone basis, declared a $5 billion auto dividend, and the group paid nearly $15 billion in catastrophe claims during the year.

Business insurance products

State Farm's commercial shelf is built for small businesses:

• Businessowners policy. The core product, packaging property and general liability, with options such as data compromise and identity restoration, sewer and drain backup, employee dishonesty and utility interruption loss of income. See What is a business owner's policy (BOP)?.
• Contractors policies for artisan and service contractors.
• Commercial auto, plus hired and non-owned auto liability for businesses whose employees drive their own cars.
• Workers' compensation, where available; State Farm does not publish a state list.
• Commercial liability umbrella, professional liability (E&O), employment practices liability and not-for-profit D&O.
• Inland marine for tools and equipment, and surety and fidelity bonds for licensing and contract requirements.
• Farm and ranch coverage for homes, livestock, equipment and income, available in 33 states.
• Condominium and homeowners association policies.
• Business life insurance: group life for groups of five or more (not in Massachusetts or Rhode Island), key employee coverage and buy-sell funding.

State Farm's business product pages stop there: it does not market middle-market, large-account or specialty programs, so larger or hazardous risks generally go to other carriers.

Who it insures

The appetite is main-street small business: shops, offices, service firms, artisan contractors, landlords of small commercial buildings, farms and ranches, and condo and homeowners associations. Many customers are people who already insure their cars and homes with a State Farm agent. Coverage, limits and eligibility vary by state, and every product page carries that caveat.

California is the exception to watch. State Farm General stopped writing new policies there in May 2023. Existing California commercial policies carry a temporary 0.26% supplemental fee for one renewal, starting January 1, 2026, to recoup part of State Farm General's $165 million-plus share of the California FAIR Plan assessment after the 2025 wildfires. Ask the agent whether State Farm is taking new business in your state and class before you count on it; see california's commercial property and wildfire market for the wider picture.

How to buy

You buy through a State Farm agent, either found by ZIP code on the site or reached through the small business quote line, 844-242-1899. The website lets you start a BOP or commercial auto quote; other lines run through the agent. Because State Farm agents are captive agents, they can quote only State Farm. A broker or independent agent can put the same account in front of several carriers, such as The Hartford or Nationwide, so it can pay to get one outside quote.

Policyholders can issue ACORD 25 certificates of insurance themselves at coi.statefarm.com for BOP, contractors, commercial auto, umbrella and workers' comp policies. Workers' comp and contractors policies are subject to a premium audit after the term. Free loss control services, including fleet and workers' comp safety guides, are available through the agent or the business lines loss control unit at 844-892-8286.

Claims

Business claims can be reported to your agent, by phone at 800-732-5246 (800-SF-CLAIM), through the State Farm app, online at statefarm.com/claims, or by texting CLAIM to 62789. Liability claims made against you go through the same channels; State Farm investigates the allegations and adjusts covered claims under the policy terms. For property repairs, eligible losses can use the State Farm Premier Service Program of contractors. State Farm describes its catastrophe response team and fleet as the largest in the industry.

The company has also been under scrutiny over property claims handling, including a California Department of Insurance market conduct examination of State Farm General's Palisades and Eaton fire claims, whose conclusions State Farm General disputes, and bad-faith litigation in Oklahoma. Most of that involves homeowners claims.

Financial strength and ratings

State Farm is one of the best-capitalized insurers in the country. State Farm Mutual's net worth was $145.2 billion at the end of 2024, and its 2025 statement of condition shows total assets of $270.5 billion. On November 14, 2025, AM Best downgraded the State Farm Group (State Farm Mutual Automobile Insurance Company, State Farm Fire and Casualty Company and State Farm County Mutual of Texas) to A+ (Superior) from A++, and its Long-Term Issuer Credit Ratings to "aa" from "aa+", citing adverse reserve development; the financial strength outlook moved to stable while the issuer credit outlook stayed negative. AM Best had affirmed the A++ with a negative outlook in October 2024. According to State Farm, S&P rates State Farm Mutual and its core subsidiaries AA. The weak spot is California: S&P removed State Farm General from the core group in May 2025, cutting it to A+, and lowered it again to A- (stable) on August 4, 2025. Each State Farm company must meet solvency requirements on its own.

In J.D. Power's 2025 U.S. Small Commercial Insurance Study, State Farm ranked 11th, down from second in 2024, after its score fell 29 points.

Strengths and weaknesses

State Farm suits small businesses that value a local agent and want their business, vehicles, home and life coverage in one place. It is not built for complex, fast-growing or hazardous accounts.

• Strengths: More than 19,200 agent offices nationwide. Very large capital base, with S&P's AA and AM Best's A+ (Superior) on the core companies. Top-five national positions in farmowners and package business. Self-service certificates and online claim reporting.
• Weaknesses: Captive agents cannot compare other carriers. AM Best cut the group from A++ to A+ in November 2025 over reserve development. A small-business product shelf with no middle-market or specialty programs. State Farm General stopped new California policies in 2023 and was cut to A- by S&P in 2025. Small-business satisfaction slipped to 11th in J.D. Power's 2025 study.

How to contact State Farm