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Federated Insurance Review

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Eric Stauffer is a former insurance agent and banker turned consumer advocate. His priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best...

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UPDATED: Nov 30, 2018

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Federated Insurance
Premiums
Claims
Feedback
Financial Strength



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Federated Insurance targets its niche of the insurance world by focusing on a specific list of businesses and specialty products. The Minnesota-based company also has personal lines products, most of which are only available in their home state.

Federated Insurance Summary

Federated Insurance was founded in 1904 as Minnesota Implement Mutual Fire Insurance Company, and went through a series of name changes before settling on Federated Mutual Insurance Company. Their initial products were aimed at implement dealers, as it was from this industry that the company was born, but they soon expanded to offer products to other types of businesses.

In 1948 the company began offering both fire and casualty insurance, adding accident and health insurance policies, and in 1959 opened the life insurance branch. Today, the company operates in 49 states and the District of Columbia, and specializes in business insurance for specific industries. Group health and life products are also available in some states.

The company does write auto insurance, home insurance, and umbrella insurance for individuals, but only in the state of Minnesota at the time of this review.

The company’s headquarters is located in Owatonna, Minnesota, with another regional office in Phoenix, Arizona, and branch claims offices throughout the country. Representatives sell Federated products individually in each state.

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Insurance Products

Federated writes mainly business insurance products, but does offer a limited selection of personal insurance as well. Their products are mainly aimed at businesses of a small to medium size that fit within certain niche markets.

Property & Casualty

As Federated’s biggest product, they write a wide variety of specialty property & casualty products for a wide range of industries.

Their areas of specialty include:

  • Auto service centers
  • Building materials dealers and wholesalers
  • Custom woodworking and cabinetmakers
  • Contractors in various fields
  • Equipment dealers including dairy, agricultural, and more
  • Funeral Services
  • Jewellers
  • Machine and tooling shops
  • Motorcycle dealers
  • Petroleum marketers, convenience stores, and transport
  • Printers
  • Retail operations in the areas of farm, hardware home supply, and more
  • Tire dealers
  • Wholesalers

Coverage is available for a long list of business needs, including various types of liability, Worker’s Compensation, Ocean Marine, Foreign Exposure, and many more. Policies are custom-designed to meet the needs of each business.

Group Health

Federated has group health insurance plans designed for small to medium-sized businesses. The plans, known as Federate Health Choice, are available in about half of the states the company serves.

Group plans include:

  • Medical
  • Dental
  • Disability
  • Life
  • Prescription Drug Benefits

Life Insurance

Federated has been writing life insurance for over 50 years and writes for both individuals as well as group life programs for businesses. They offer a range of products in a number of states.

Financial Products

In addition to basic life insurance, they also write disability income policies for individuals and businesses, and offer individual retirement plans. Among these are various types of IRAs (Traditional, Roth, Simple, Sep) and annuities (immediate and deferred).

Auto Insurance

Federated’s personal auto insurance program is available only in Minnesota. They write a range of coverage with their “driver’s choice” program, which allows drivers to tailor the policy to their particular needs In addition to basic liability, available features include 24/7 roadside assistance, rental car reimbursement, and full glass coverage.

Federated also offers a good lineup of discounts, including deductible reductions and other special discounts rewarding drivers for years of safe driving.

Home Insurance

Like the auto program, home insurance is only available in Minnesota. Federated writes both standard homeowner’s, for single-family dwellings with replacement cost structure coverage and more, as well as renter’s insurance.

Umbrella Insurance

Federated writes umbrella insurance policies only in Minnesota, offering individuals expanded liability coverage up to $5 million.

Prices and Premiums

Federated offers online quoting for their car and home insurance programs for Minnesota residents only. Since these policies are not available nationally, it is difficult to compare rates. Their quoting system requires a fairly extensive amount of information, making it hard to get quick comparisons.

Federated is mostly a business insurance company, and rates for this sort of policy are not easy to compare given the nature of business insurance. As a major competitor in this market, particularly the specialty areas the serve, Federated can be expected to have competitive rates.

Claims

Federated has claims branches in several states to allow for faster and easier processing of business and life insurance claims. These claims can be reported following the easy instructions provided on the company website. The website also offers downloadable forms and resources to assist with understanding the claims process.

Since business insurance claims can be very complex, it’s difficult to determine any sort of length of time on claims processing.

Federated personal lines claims go through the same claims line as the business policies use. There is also an online claims form that can be used to submit certain types of claims, including auto.

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Consumer Feedback

Although Federated Insurance is not Better Business Bureau accredited, the company currently holds an A+ rating. There have not been any complaints listed in the last three years, which is very impressive considering the size of the company. There is only one negative review listed concerning poor claims handling.

A search returns very few complaints against the company overall, and nothing else of major concern in terms of company reputation.

Financial Strength

Rating Company Grade Financial Outlook
AM Best A+ Stable
Fitch N/A N/A
S&P N/A N/A

Bottom Line

Federated Insurance is mainly a business insurance company, and for those running small to medium-size companies that fit into Federated’s niches, they are likely a good choice to consider. They also have a strong life insurance program, both for businesses and individuals.

When it comes to personal insurance, it’s only available to Minnesotans, who may want to consider a quote from the company especially if they are looking to select a homegrown insurer over a national one.

For a list of companies that we recommend, visit our Best Insurance Companies page.

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Review Information

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Federated Mutual
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About Eric Stauffer

Author: Eric StaufferI am a former insurance agent and banker turned consumer advocate. My priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best place to get it.

17 Comments

  1. HORRIBLE !!!!!!!!!!!

    We submitted a minor claim and were first categorically DENIED by our Adjuster without HER even reviewing our policy.

    3 MONTHS now have lapsed without any correspondence unless we initiate first.

    We still are waiting for reimbursement on the larger items and considering how badly we have been compensated on the small-ticket items, not expecting any good news anytime soon.

    If this were a major claim, we would be OUT OF BUSiNESS after paying our premiums faithfully.

    TAKE MY ADVICE, GO WITH ANOTHER CARRIER!! YOU WOULD BE HARD PRESSED TO FIND SOMEONE WORSE!!!!

    Reply
    • Love to know Christopher Struble’s company’s name so I could do some research for you.

      I guarantee there is more to this story.

      The reason there are near no bad reviews? Think about it.

      116 years in business. Ward’s Top 50. AM BEST Rated A+ Superior.

      Maybe we are the Value Difference we claim to be.

      Matt in Bossier City

      Reply
      • Mathew Graves, please learn proper English as soon as possible if you would be so kind.

        The fact you know nothing about our case makes your guarantee about as empty as the worthless company you are speaking on behalf of.

        Know wtf you are talking about before you behave like a classic used car or insurance salesman.

        I hope you find yourself in a similar situation, so I can reassure you all is well…

        Let’s have lunch, you sound like a really cool dude …

        Reply
    • Really!!!! Do you want to get me started?

      You guarantee there is more to the story!?

      You don’t even know anything about our situation and you want to add your 2 cents!??

      Sure pour gasoline on the fire and shove your A + reviews…

      The way we were treated outdoes your amazing ability to speak without knowledge.

      Reply
  2. BE CAREFUL!! The rep for Montana is quite the salesman.

    I, unfortunately, fell for his sales pitch.

    Make sure if you are a business owner, you have your attorney read the fine print.

    There were so many errors with the policy finally went into effect.

    I would not have been given one red cent if I was to file any claim.

    Perhaps this is how Federated is able to stay in business!?!?

    Reply
  3. Probably the worst experience I’ve had with an insurance company.

    I have State Farm (whom I cannot recommend highly enough) but dealing with Federated was mind numbing.

    The other party in my automobile accident has Federated. Despite crossing two sets of double yellows and driving the wrong way down a one way exit (yes, we hit head on), Federated insists on nickel and diming the entire claim – finally accepting liability after a painstaking process, not to mention rude operators. Even then, getting my car ‘appraised’ and ‘estimated’ was horrendously slow, and the appraiser was clearly cheap himself (late, rough with car).

    Cheap insurance is rewarded with cheap service. 0 stars out of 5.

    Reply
  4. Horrible, absolutely horrible in every aspect in their health and commercial coverages. Dishonest.

    Reply
  5. My son has been waiting 3 months and still have not gotten a settlement the insurance adjuster want answer his phone or return none of our calls and when I do get a hold of him he keeps saying he need the same paper that we have sent several times I think it’s really sad for a insurance place to act like this I think my next step is just to get a attorney

    Reply
  6. This has to be the absolute WORST company for employees on workmans comp!!!! They delay, drag things out and communicate so poorly I can’t believe they’re still in business!! I WILL find a public venue to put a negative review!! This site is only first I came across to post my frustration!!!

    Reply
    • I agree

      Reply
      • AGREED. HORRIBLE WITH NO REGARD FOR THE FAMILIES THEY AFFECT WITH THEIR NEGLIGENCE AND UNWILLINGNESS TO HELP NOR ADHERE TO THE WORK COMP LAWS. MY HUSBAND WAITED TWO WEEKS TO GET A ONE WEEK CHECK.

        Reply
  7. We were just given the rates by Federated for family medical insurance from a new employer. Of course you have 3 choices all with different deductibles, co-insurance and coverage. The deductibles range from $2000 family to $12,000 family. The rates are calculated per person according to our ages. We have a family of four. ( 2 adults, 2 children )To choose the plan with the lowest deductible $2,000 would include an out-of-pocket cost of 20% co-insurance plus co-pays. The plan with the highest deductible at $12,000 has a 0% co-insurance. Mid-range plan is $6,000 deductible for family with 0% co-insurance. All of these quotes are in-network providers only. For our family to choose the lowest deductible $2000 with 20% co-insurance is $1517.76 per month for premiums plus co-pays. For the highest deductible plan at $12,000 for a family of four with 0% co-insurance would cost $1130.52 plus co-pays. Tell me, please. Which would you choose? Paying $18,213.12 per year for premiums to get the lowest deductible of $2000 plus 20% co-insurance and co-pays or would you pay $13,566.24 per year for premiums but have the highest deductible at $12,000 with 0% co-insurance plus co-pays. Keep in mind, we also would need to add $1599.36 for Dental and $409.80 for Vision per year, as well. Or would you take your chances, pay the fines required for being uninsured with the Affordable Care Act laws, and possibly still be able to keep your house as long as no one got sick? Because these health care costs are higher than my $1355.58 mortgage payment. Also, I would need us to get sick enough to reach our deductible for you to cover any costs at all. So please tell me, what would you do?

    Reply
    • Hi Catherine,

      It looks like you have a good grasp on the actual costs from health care, and are at the point of determining whether to take the risk or not. I can assure you that you are not alone, since I sit down and do this calculation almost every year.

      I can’t tell you what to do here, since there are way to many variables and your risk tolerance may be different than mine. All I can do is mention how I like to do the math.

      First, I calculate the total cost of the premiums. You have already done this, so that is good. You will be out this cost, regardless. Its your fixed cost.

      Second, I calculate the worst-case scenario for each plan. Basically pretend you have a $100,000 bill that will max your annual out of pocket. This gives me the most I could be on the hook for.

      Third, I calculate the total cost for each plan at various expense levels. What if I have $1,000 in bills? $5,000? $10,000? This will reveal the break even points for each plan as they are compared to each other.

      What I generally find at this point is one plan usually has a much lower fixed cost to the tune of thousands of dollars. As a rather healthy family, I tend to lean toward these ones, especially if I can contribute to an HSA in the process.

      As far as forgoing insurance altogether – That is something you will need to determine for you and your family. I certainly understand the situation, given the ridiculously high cost of health insurance these days.

      Best,
      Eric Stauffer

      Reply
      • Try A health care sharing ministry, like Medishare or Christian Healthcare Ministries.

        Reply
  8. I have a claim with Federated Mutual insurance. I feel as though they are doing everything possible to make my life miserable. They have never even returned a phone call.

    Reply
  9. i have federated heath and they don’t want to pay for a medication i NEED to get better. Please help.

    Reply
    • Hi Randy,

      If you are having a problem with your insurance company and believe they are treating you unfairly, I would recommend filing a formal complaint with the insurance commissioner’s office in your state. If you want to post which state you are in, I would be more than happy to find the contact information for you.

      Reply

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