In many ways, the insurance industry is a mirror image of our diverse and dynamic society. Virtually no aspect of our culture is immune to risk. This is particularly true in our free enterprise system, which is driven in large part by family-owned and operated businesses. More than a century ago, the founders of Federated Insurance sensed the unique contributions family businesses made in America. From this understanding has grown a commitment to serve these companies in a way that extends well beyond merely selling insurance products.
Delivering peace of mind for over 100 years
In 1904, a small group of Minnesota businessmen, concerned about the high cost of fire insurance, decided to form their own mutual fire insurance company. At the same time, a group of farm implement dealers organized to address common industry problems, including the high cost and unavailability of fire insurance. They felt that insuring only loss-conscious, safety-minded policyholders through a mutual company would result in reduced losses and reduced insurance costs. After some investigation, the group took steps to launch their own mutual insurance company to resolve these issues.
Mr. Charles I. Buxton managed the insurance company with the help of another employee. They approved applications, wrote policies, handled correspondence, adjusted losses and, whenever possible, solicited new business. Direct writing, rather than selling through independent agents, was unique at that time and a key building block in Federated’s success.
Mr. Buxton, a man of high integrity, became known for settling claims fairly. As the company’s reputation grew, so did the premium base. In addition to insuring implement dealerships, the company began writing fire insurance on dwellings, blacksmith shops, and auto garage operations.
By the 1960s, Federated was at a crossroads. The organization could continue on as a stable, regional insurer or it could expand into new territories. Sensing an opportunity, company leaders expanded the company into several more Midwestern and western states. Expansions continued throughout the years, and currently, Federated is licensed to do business throughout America, with the exception of Vermont and Hawaii - an impressive testimony to its plan for growth.
Federated’s strong trade association relationships were instrumental in getting the expansion areas on a firm foundation quickly. Once an exclusive association recommendation was acquired, marketing representatives traveled large areas of the state, calling only on association members.
For a large portion of the 1900s, association recommendations accounted for almost 100 percent of Federated’s commercial business. By the end of the century, hundreds of specialty trade associations and national buying groups - including jewelers’ associations - were exclusively recommending Federated to their members.
For more than a century, Federated has provided peace of mind to business owners through valued insurance protection.
Just like Federated’s founders, today’s business owners want quality insurance protection and risk management assistance tailored to meet their specific needs. That’s why Federated seeks input from clients through various sources. Many innovative products and services have been developed based on discussions and research involving business owners. Federated’s Jewelry Shield® line of coverages is an example of this. It was designed specifically for jewelers, based on feedback from jewelers who wanted more specialization from the insurance industry.
In addition to insurance coverage, Federated’s industry-leading risk management support is evident in the value-added services it delivers to each client. Clients have access to resources specifically designed to help them develop their own solid risk management program, using proven techniques and services.
- Federated’s Shield NetworkSM - an online source for risk management support.
- The Risk Management Resource Center - remote risk management consultation with trained risk consultants.
- Risk Management Seminars - industry-specific seminars that provide insight into an industry’s loss control needs.
- Federated Employment Practices NetworkSM - an online resource for employment law and human resources questions.
- Direct Marketing - The more than 500 marketing representatives located throughout the contiguous 48 states make up a direct marketing force unique in the insurance industry. The one-on-one relationship clients and prospects develop with their Federated representative is a valued part of their total insurance package.
But, the Federated family knows it’s not always just about insurance. At the heart of the Federated legacy is corporate and employee involvement in causes that center on bettering communities and lives near and far. Federated employees are often found volunteering their time, talents, and money as they routinely involve themselves in helping others.
Federated was founded out of a need to fill a gap in the industry. From that singular directive has grown one of the country’s superior insurers today.
Contact Federated Insurance at 507-455-5200 or www.federatedinsurance.com.