State Farm Review

About State Farm

State Farm is a mutual insurer headquartered in Bloomington, Illinois. Its parent, State Farm Mutual Automobile Insurance Company, is a mutual company whose members are its policyholders, and State Farm says it has been in business for over 100 years (it was founded in 1922). State Farm says its companies are the largest providers of auto and home insurance combined in the United States, with more than 19,200 agent offices and over 62,000 employees, and it sells commercial policies and business owners coverage alongside its personal lines.

For trades, State Farm sells a contractors policy (its site refers to Artisan and Service Contractors policies). Its contractors page names electricians, plumbers and landscapers and lists business personal property, building property, liability, completed operations, property of others and installation floater coverage, with tools and equipment coverage as an option. Workers' compensation and commercial auto are separate policies, and State Farm's small business lineup also includes a business owners policy, a commercial liability umbrella, professional liability, employment practices liability, inland marine and surety and fidelity bonds.

Coverage is sold through local State Farm agents, who work as independent contractor agents. Contractors and workers' compensation policies require a final premium audit after the policy period, which reviews your actual payroll or the cost of work your subcontractors completed, so the final premium can differ from the estimate. State Farm's contractors pages do not list which trades or contractor types qualify, so confirm eligibility for your work with an agent.

State Farm also faces legal and regulatory scrutiny over its handling of claims from the January 2025 Los Angeles wildfires. Los Angeles County sued it on August 31, 2026, and according to the county, the California Department of Insurance reported 398 violations in a review of 220 claims.

The trade-off: State Farm offers a broad small business lineup and a local agent, which suits owners who already insure a home or vehicles with State Farm, but you must go through an agent, premiums are quoted per account and audited for contractors, and eligibility for your specific trade needs to be confirmed up front.