Federated Insurance Review & Complaints: Business, Home, Auto & Life Insurance (2024)

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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 also offers a variety of insurance coverages including auto insurance as well as home and life insurance products. Enter your ZIP code above to get a FREE insurance quote today.

What’s the Federated Insurance Company?

Federated Insurance Company was founded in 1904 as Minnesota Implement Mutual Fire Insurance Company, and for a period of time, 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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What are their 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
• Jewelers
• 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.

What are the 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 they serve, Federated can be expected to have competitive rates.

Federated Claims Process

Ease of Filing a Claim

Filing a claim with Federated Insurance is a straightforward process that can be conveniently done online through the company’s website. Customers also have the option to file a claim over the phone. Additionally, Federated Insurance offers mobile apps that may provide another avenue for claims submission, enhancing the flexibility and convenience of the process.

Average Claim Processing Time

The average claim processing time at Federated Insurance may vary depending on the nature and complexity of the claim. Since the company primarily focuses on business insurance, the processing times for business-related claims can be complex and may require thorough assessment.

Unfortunately, specific processing timeframes are not provided in the available information.

Customer Feedback on Claim Resolutions and Payouts

While there is limited customer feedback available in the provided content, it is mentioned that Federated Insurance holds an A+ rating and has received very few complaints, particularly regarding claims handling.

However, no detailed customer testimonials or feedback on the resolution and payout experiences are provided. Customer satisfaction in this aspect would require further investigation through external sources.

Federated Digital and Technological Features

Mobile App Features and Functionality

Federated Insurance offers mobile apps to enhance customer experience and provide digital access to their services. However, the content does not provide specific details about the features and functionality of these apps.

To evaluate the effectiveness of the mobile app, customers may need to explore the app directly or refer to user reviews and documentation.

Online Account Management Capabilities

The extent of online account management capabilities offered by Federated Insurance is not detailed in the provided information. Many insurance companies provide online account access for policyholders to view and manage their policies, make payments, and track claims.

For specific features and capabilities, customers should visit the company’s website or contact their customer service.

Digital Tools and Resources

The content does not elaborate on the digital tools and resources provided by Federated Insurance. Insurance companies often offer resources such as educational materials, risk assessment tools, and calculators to help customers make informed decisions.

To access these digital resources, customers can visit the company’s website and explore the available online tools and content.

What are the Federated Insurance reviews?

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.

What is the financial strength?

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

What’s the bottom line?

Federated Insurance is mainly a business insurance company, and for those running small to medium-sized 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. Comparison shopping is the best way to provide yourself with peace of mind when it comes to making confident insurance decisions.