Our take
American Family was the top-ranked insurer for customer satisfaction in the J.D. Power U.S. Small Commercial Insurance Study and has a high AM Best rating, an indication of financial stability. The insurer offers multi-policy and other discounts to make small business insurance more affordable. It also uses a local-agent model, in which agents and their offices get to know specific clients and their business needs.
What makes American Family insurance different?
American Family stands out for its service. Whether it’s paying a bill or making a claim, commercial clients have a positive experience with American Family, according to the J.D. Power Small Business Insurance Study. The rating demonstrates that AmFam cares about its clients and takes the necessary steps to assist them when they have a claim.
American Family commercial insurance coverage
American Family offers small businesses a number of policies, including:
- Commercial auto: Covers injury and property damage claims involving vehicles used for business purposes.
- Commercial flood: Covers repairs to your business’s physical location and repairs or replacement of its contents in the event of a flood.
- Commercial general liability: Pays claims when your business is liable for third-party injuries or property damage.
- Commercial property: Covers damage to business buildings and property, such as equipment, inventory and tools.
- Professional liability: Covers customer lawsuits and legal judgments stemming from accusations of unsatisfactory work, such as missing a deadline or making a mistake.
- Umbrella: Offers extended liability coverage for policies such as general liability and commercial auto.
- Workers’ compensation: Pays medical bills and wages for workers injured on the job.
How much does American Family small business insurance cost?
American Family doesn't have an online quote tool for many insurance products, and it doesn't disclose its pricing information online. You need to contact a local agent to get a quote.
How to save on American Family small business insurance
American Family offers a wide range of discounts, including multi-car discounts. You may be eligible for other discounts on commercial lines if you installed safety devices and took other security measures. Ask your local agent if you’re eligible for discounts.
How to buy American Family insurance
Follow these easy steps to buy a commercial insurance policy from American Family:
- Contact a local agent.
- Explain your insurance needs.
- Get a quote for insurance.
- Pay your premium due at the onset of the contract terms.
The importance of commercial insurance for small businesses
Every business is exposed to risks. A building or office can be damaged in a storm, customers can slip and fall, employees can make an error or a hacker can get into a company’s computers. Businesses are responsible for the settlement and legal defense of claims.
A small business can mitigate the cost of claims by having insurance.
Insurance provides financial protection against risks in exchange for a premium – what you pay an insurer for coverage. If you face a loss from a covered risk, you’ll file a claim with your insurer. You’re on the hook for your deductible – the amount you agree to pay out of pocket when you file a claim – and then your insurance would kick in to cover the rest of your loss, up to your policy limit.
Choosing a financially stable company with a reputation for good customer service is important to ensure your insurer can back up your claim and handle your claim efficiently.
A good agent can help you navigate the insurance landscape.
"Your agent should work closely with you to create a customized insurance program tailored to your company's unique needs," says Chris Peterie, chief executive of Tower Street Insurance in Dallas, Texas. "Every business is different, and there should never be a one-size-fits-all approach."
Bottom Line
American Family offers excellent customer satisfaction and receives few customer complaints – strong indications that the company will provide the service you need should you file a claim.
Methodology
To identify the top 10 business insurers for small businesses, we used three trusted third-party metrics.
- J.D. Power’s 2024 U.S. Small Commercial Insurance Study, the results of which we used to calculate a star score – with 5 stars being the best. American Family had the highest customer satisfaction index – a score of 727 – and was assigned 5 stars. Star scores were derived for the remaining carriers relative to their customer satisfaction index.
- AM Best Financial Strength Ratings (FSRs), which we also used to calculate a star score. A++ is the best possible FSR and companies with that rating get 5 stars. Each rating notch below A++ is assigned a 1/3 star value – for example, an A+ receives 4.67 stars, and an A receives 4.33 stars.
- 2023 complaint index data from the National Association of Insurance Commissioners (NAIC) for both commercial property and commercial liability. Again, we used the finding to calculate a star score. We collected the complaint indices and annual written premiums for each company to calculate a weighted average for each company group by line. The lowest property and liability complaint indices were assigned 5 stars, the highest complaint indices were assigned 2.5 stars. Star scores were derived for the remaining carriers relative to their complaint indices.
We then weighed the overall score with one-third for J.D. Power, one-third for AM Best, one-sixth for NAIC commercial property and one-sixth for NAIC commercial liability.
The companies were then ranked on a curve – with the top score being 5 stars and all subsequent star ratings being determined by that top score.