Page 14 - CMA PROfiles Winter 2015

ASSOCIATE OF THE QUARTER

Federated Insurance

Who we are, what we do

n many ways, the insurance industry is a mirror image of our
diverse and dynamic society. Virtually no aspect of our culture
I is immune to risk. This is particularly true in our free enterprise
system, which is driven in large part by family-owned and oper-
ated 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.

Where we came from
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, includ- By the 1960s, Federated was at a crossroads. The organization could
ing the high cost and unavailability of fire insurance. They felt that
continue as a stable, regional insurer, or it could expand into new ter-
insuring only loss-conscious, safety-minded policyholders through a ritories. Sensing an opportunity, company leaders expanded the com-
mutual company would result in reduced losses and reduced insur- pany into several more Midwestern and western states. Expansions
ance costs. After some investigation, the group took steps to launch continued throughout the years, and currently, Federated is licensed
their own mutual insurance company to resolve these issues
to do business throughout America, with the exception of Vermont
and Hawaii—an impressive testimony to its plan for growth.
Federated’s strong trade as-
sociation relationships were
instrumental in getting the ex-
pansion areas on a firm founda-
tion quickly. Once an exclusive
association recommendation
was acquired, marketing repre-
sentatives traveled large areas
of the state, calling on associa-
tion members.

For a large portion of the
1900s, implement association
recommendations accounted for
almost 100 percent of Feder-
ated’s commercial business. By John A. Buxton, son of
Federated Insurance’s first permanent home was completed in the end of the century, hundreds
1922 and became known as the “Original Building.” In 2014, it of specialty trade associations Federated Insurance Founder
Charles I. Buxton, held positions
was dedicated as the Charles I. Buxton Building, a tribute to the and national buying groups
Company’s founder. were exclusively recommend- of second vice president, first
vice president, president, and
ing Federated to their members. chairman of the board.
Mr. Charles I. Buxton managed the insurance company with the help A recent addition to this list of
of another employee. They approved applications, wrote policies, quality trade associations recommending Federated is Cabinet Mak-
handled correspondence, adjusted losses and, whenever possible, ers Association.
solicited new business. Direct writing, rather than selling through
independent agents, was unique at that time and a key building block “When we expanded our insurance offerings to the cabinet and
in Federated’s success. custom woodworking industry, our primary goal was to find an as-
sociation partner with a value-added approach to bringing benefits to
Mr. Buxton, a man of high integrity, became known for settling its members,” said Scott Warren, Federated Insurance vice president,
claims fairly. As the company’s reputation grew, so did the premium director of Association Risk Management Services. “CMA certainly
base. In addition to insuring implement dealerships, the company stood out as a member-centered organization that would help us
began writing fire insurance on dwellings, blacksmith shops, and auto deliver our specialized insurance and risk management programs to
garage operations. continued on page 16

14 PROFILES • Volume 15 • Issue 1, 2015 • www.cabinetmakers.org