State Farm Review

About State Farm

State Farm is the largest and one of the most recognizable insurers in the US, founded in 1922 in Bloomington, Illinois, and it carries the highest-possible AM Best financial-strength rating, A++ (Superior). It offers small-business insurance through its vast network of local agents and ranks among the best small-business insurers for customer satisfaction. For an owner who values a local agent relationship and a household-name carrier with top financial strength, State Farm is appealing.

But there's a critical caveat for trades, and it's the headline of this review: State Farm will underwrite service and artisan contractors, but it does not underwrite general contractors. In State Farm's terms, an artisan/service contractor doing on-site work can be covered (protecting against on-site property damage, tool-related injuries, theft, etc.), but a general contractor — coordinating subs and larger construction — is outside its appetite. So whether State Farm is even an option depends entirely on which kind of contractor you are.

For service-trade and artisan contractors who do qualify — HVAC, plumbing, electrical, landscaping, cleaning, handyman, painting — State Farm offers an A++ carrier, strong customer satisfaction, a local agent who can bundle business with personal coverage, and the comfort of a familiar brand. It's a solid mainstream choice for that segment. Like all large carriers, consumer reviews are mixed (reflecting claims-experience variance more than the financial rating), and it's agent-distributed (no instant online commercial bind).

For a qualifying service/artisan trades business that wants a top-rated, recognizable carrier with a local agent relationship, State Farm is a strong option — provided you're not a general contractor, in which case you'll need a different carrier (CNA, Selective, Travelers, or a specialty market). Always confirm eligibility for your specific trade with the agent first.