farm mutual

A farm mutual is a member-owned, state-regulated mutual insurance company that operates under specific state law to serve its members' insurance needs. Often with roots in local or agricultural communities, farm mutuals were originally established to provide insurance coverage for farmers, agricultural property, and rural communities. Rather than being distributed to shareholders, any profits are typically returned to policyholders through dividends, reduced premiums, or enhanced services. Farm mutuals have expanded to also offer coverage for homes, businesses, automobiles, and other property risks beyond traditional farming operations.