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’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.
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
- Franchised auto and truck dealers
- Machine and tooling shops
- Motorcycle dealers
- Petroleum marketers, convenience stores, and transport
- Retail operations in the areas of farm, hardware home supply, and more
- Tire dealers
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.
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:
- Prescription Drug Benefits
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.
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 and annuities.
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.
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.
Federated writes umbrella insurance policies only in Minnesota, offering individuals expanded liability coverage up to $5 million.
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.
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.
Federated is not BBB accredited, but has an A+ rating. There are only 15 complaints against the company in the past three years, six of which were closed in the past 12 months. That’s a very small number for so large a company, although this may reflect the focus on business rather than personal insurance, as personal lines policies tend to attract more reviews and complaints overall.
A search returns very few complaints against the company overall, and nothing else of major concern in terms of company reputation.
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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.