Progressive vs Farmers Coverage: A Comprehensive Guide for Small Business Owners

Quick Comparison: Progressive vs Farmers

Factor	Progressive	Farmers
Coverage Types	Commercial auto, GL, BOP, property	GL, BOP, property, workers comp, specialty lines
Cost Range	$800-1,200/yr (commercial auto focus)	$900-1,400/yr (comprehensive business)
Quote Speed	Instant online (5-10 mins)	Agent-assisted (1-3 days)
Best For	Vehicle-heavy businesses, tech-savvy owners	Multi-coverage needs, personalized service
Specialty	Commercial auto (14.99% market share)	Full business insurance portfolio
Service Model	Multi-channel: online, phone, or agent	48,000+ local agents nationwide

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Quick Answer

Coverage winner: Farmers offers broader small business insurance products (property, liability, workers comp, specialty lines). Progressive excels specifically in commercial auto.

Best for most businesses: Farmers (comprehensive business insurance)
Best for vehicle-heavy businesses: Progressive (commercial auto specialists)

Key difference: Progressive = multi-channel (online + agents). Farmers = 48,000+ local agents with personalized service.

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Which is Better for Your Industry?

Contractors & Trades

Winner: Farmers — Better for contractors needing comprehensive coverage including GL, workers comp, tools & equipment, and commercial auto bundled together. Progressive works if you primarily need commercial auto for work trucks.

Retail & Restaurants

Winner: Farmers — Retail stores and restaurants benefit from Farmers' comprehensive property, liability, and business interruption coverage. Farmers' agent network provides personalized risk assessment for these higher-liability industries.

Professional Services (Lawyers, Accountants, Consultants)

Winner: Farmers — Professional services need robust E&O, GL, and cyber insurance. Farmers' broader specialty lines and local agent support make them stronger for professional liability needs.

Delivery & Transportation

Winner: Progressive — If your business is vehicle-centric (delivery, trucking, courier services), Progressive's commercial auto expertise and competitive pricing make them the clear choice.

Not sure which applies to your business? Check out our Business Owners Policy (BOP) guide or compare next insurance vs progressive for another strong competitor.

When shopping for commercial insurance, U.S. small-business owners often find themselves comparing two household names: Progressive and Farmers Insurance. Both companies have established strong reputations in the insurance marketplace, but they differ significantly in their business models, coverage specializations, and service approaches. Understanding these differences can help you make an informed decision that protects your business while fitting your budget and operational needs.

Progressive vs Farmers: Detailed Side-by-Side

Feature	Progressive	Farmers
Best for	Vehicle-heavy businesses & tech-savvy owners	Most small businesses needing full coverage
Founded	1937	1928
Market share	15% (auto), 14.99% (commercial auto)	5.51% (all property/casualty)
Specialty	Commercial auto insurance	Comprehensive business insurance
Coverage types	Auto, GL, BOP, commercial property	GL, BOP, property, workers comp, specialty
Distribution	Online + 30,000 independent agents	48,000+ exclusive & independent agents
Buying experience	Multi-channel (online, phone, agent)	Agent-focused, personalized service
Technology	Strong (online quotes, mobile apps)	Moderate (agent-assisted digital)
Best for	Delivery, trucking, contracting	Retail, hospitality, professional services

Comparing other carriers? See Progressive vs State Farm or Hartford vs Chubb for more options.

Company Backgrounds and Market Position

Progressive ranked #62 on the 2024 Fortune 500 list of the top American corporations, while [1]

Farmers Insurance has more than 48,000 exclusive and independent agents and approximately 21,000 employees. Both companies are financial powerhouses with decades of experience serving American businesses and consumers [2].

Progressive is the second-largest auto insurer in the United States as of the 2023 fiscal year, with 15.2% of the market. The company has built its reputation on innovation and technology, being among the first insurers to offer online quotes and mobile policy management [1].

Farmers Group, Inc. is a wholly owned subsidiary of Swiss-based Zurich Insurance Group, providing additional financial backing and global insurance expertise [2].

According to

NAIC data, Farmers Insurance Group ranked 5th in total property/casualty market share with a 5.51% market share, demonstrating its significant presence across multiple insurance lines. Meanwhile, Progressive's dominance is particularly evident in commercial auto insurance, where [3]

Progressive Group holds a 14.99% market share with direct premiums written of $10,787,378,372 [3].

Distribution Models: How You Buy Coverage

One of the most significant differences between these insurers is how they sell their products, which directly impacts your buying experience and ongoing service relationship.

Progressive's Multi-Channel Approach

Progressive's agency business sells insurance through more than 30,000 independent insurance agents and progressiveagent.com where customers can quote their own policies and then contact an agent to complete the sale. This multi-channel distribution gives you flexibility. You can get quotes online, call directly, or work with an independent agent who can compare Progressive's offerings with other carriers. This approach is particularly appealing for tech-savvy business owners who prefer digital interactions and want to shop around efficiently [1].

Farmers' Agent Network

Farmers Insurance has more than 48,000 exclusive and independent agents

who provide personalized service. Farmers uses a hybrid model that includes both exclusive agents (who sell only Farmers products) and independent agents. This means you can work with a dedicated local agent who develops expertise in Farmers' products and can provide ongoing support for your business insurance needs [2].

Coverage Specializations and Product Offerings

Understanding what each company does best can help you determine which insurer aligns with your business needs.

Progressive's Commercial Auto Dominance

The company insures passenger vehicles, motorcycles, recreational vehicles (RVs), trailers, boats, personal water craft (PWC), and commercial vehicles. Progressive has built a particularly strong reputation in commercial auto insurance. If your business relies heavily on vehicles—whether you operate a delivery service, contracting business, or transportation company—Progressive's expertise in this area makes it a compelling choice [1].

The commercial auto segment writes primary liability and physical damage insurance for automobiles and trucks owned by businesses primarily through an independent agency channel. Progressive's technology-driven approach includes usage-based insurance options that can provide additional savings for businesses with safe driving records [1].

Farmers' Comprehensive Business Insurance

Farmers offers business insurance for small and medium-sized businesses, such as liability and property insurance, commercial auto and workers compensation insurance for apartment and commercial property owners, artisan contractors, condominium homeowner associations, retail stores, service providers, offices, religious organizations, educational and non-profit organizations, hotels, motels, bed & breakfasts, and other businesses in the light manufacturing, restaurant, wholesale, and auto service & repair industries [2].

This broader product portfolio makes Farmers a strong option if you need multiple types of coverage bundled together. For businesses requiring a comprehensive business owners policy that includes property, liability, and business interruption coverage, Farmers' extensive product lineup provides more one-stop-shopping convenience.

Essential Coverage Types for Small Businesses

Regardless of which carrier you choose, understanding the fundamental coverage types your business needs is critical.

Commercial General Liability

For the more than half million U.S. entrepreneurs who start a business each month, making the right insurance moves can mean the difference between a first-anniversary celebration and an inaugural-year flop. Both Progressive and Farmers offer commercial general liability coverage that protects your business from claims alleging bodily injury, property damage, and advertising injury. This foundational coverage is essential for virtually every business type [4].

Workers' Compensation

If you have employees, workers' compensation insurance is typically required by law in most states. Farmers offers workers' compensation as part of its comprehensive business insurance portfolio, while Progressive's offerings in this area are more limited. This represents a significant consideration for businesses with employees, as you may need to work with multiple carriers if you choose Progressive for commercial auto but need workers' comp coverage elsewhere.

Professional Liability

For service-based businesses, consultants, and professionals, professional liability insurance protects against claims of negligence, errors, or omissions in your professional services.

Progressive's other-indemnity segment provides professional liability insurance to community banks, principally directors, and officers liability insurance, though this represents a more limited scope compared to Farmers' broader professional liability offerings [1].

Cyber Insurance

In today's digital business environment, cyber insurance has become increasingly important.

It is estimated that between 30-40% of small business owners carry business interruption insurance, but cyber coverage remains underutilized despite growing threats. Both carriers offer cyber coverage options, though availability and pricing vary by business type and risk profile [5].

Employment Practices Liability Employment practices liability insurance protects businesses against claims from employees alleging discrimination, wrongful termination, harassment, or other employment-related issues. This coverage has become increasingly important as employment litigation continues to rise. Both Progressive and Farmers offer EPLI coverage, though the specific policy terms and limits differ.

Pricing Considerations

Premium costs vary significantly based on your business type, location, coverage needs, and risk profile. However, some general patterns emerge when comparing these two carriers.

Progressive often offers competitive rates for commercial auto insurance, particularly for businesses with smaller fleets or newer companies. The company's direct-to-consumer model and efficient underwriting processes can translate to lower premiums in many cases. Their usage-based insurance options can also provide additional savings for businesses with safe driving records.

Farmers' pricing tends to be more competitive when bundling multiple coverage types together. If you need property insurance, general liability, commercial auto, and workers' compensation, purchasing a comprehensive package from Farmers may result in better overall pricing than piecing together coverage from multiple carriers.

Claims Service and Customer Support

When disaster strikes, the quality of claims service becomes paramount. Both companies have established claims departments with 24/7 availability, but their approaches differ.

Progressive has invested heavily in technology-driven claims processing, including mobile apps that allow you to file claims, upload photos, and track claim status digitally. The company also deploys immediate response vehicles to accident scenes in some areas, providing on-the-spot assistance.

Farmers emphasizes the personal relationship with your local agent, who can advocate on your behalf during the claims process. This human touch can be valuable when navigating complex commercial claims that require detailed documentation and negotiation.

Technology and Digital Tools

Progressive has historically led the industry in digital innovation.

Progressive claims being the first auto insurance company to allow customers to purchase insurance