Insurer Review: Liberty Mutual

Founded in 1912, the Massachusetts Employee’s Insurance Association (MEIA), now known as Liberty Mutual, was begun to workers’ compensation insurance to Massachusetts workers in accordance with state law. Expanding coverage to include all 48 states back in 1937, the company originally prided itself on being one of the few insurance companies of its time, since insurance was regarded back then as a luxury option as opposed to prudence or even legal obligation.

For nearly 100 years now, Liberty Mutual has grown significantly from its humble beginnings to a national organization that is able to compete with the largest insurers in the nation including Allstate, Progressive and State Farm. They offer a full product line of insurance including home, auto, office, & life insurance lines at competitive rates that help keep them at the top of the corporate insurance dog pile.

With agents that can be found in all 50 states to provide you with customized, face to face service if that is what you like, Liberty Mutual manages to keep pace with the larger insurance companies in that regard as well, though they don’t have the additional overhead of extensive advertising campaigns like some of their competition does.

Financial Outlook

Liberty Mutual had a significant period of time with an A rating until 2008 when it acquired Safeco. Shortly after that acquisition, Standard & Poor’s announcement came through that it was lowering their rating to A- with a stable outlook. The announcement was met with a formal protest from Liberty Mutual, but their rating remains unchanged. Regardless of their financial status downgrade, Liberty Mutual remains a significant insurance juggernaut, both reliable and capable of handling all of its financial obligations.

Claims Service

Liberty Mutual has a claims service that is rated as fair if you are a customer of theirs. Their 24 hour support features friendly customer service representatives who are generally amiable to customers and the ability to speak with management as needed. If you are not a Liberty Mutual customer, on the other hand, you can receive treatment that is less than accommodating. They have received a poor rating from JD Power for their claims service when it comes to trying to get payment from them after an accident with one of their customers.

Customer Service

Overall the customer service features of Liberty Mutual live little to be desired by way of accommodations and overall service options provided. Liberty Mutual customers report that from sales to claims they are treated with respect, short wait times and fast response when a response is required.
Liberty Mutual seems to do exceptionally well for their customers, while needing some improvement when it comes to their relations to non-customers. They tend to pay their claims on time when requested by customers and have managed to keep a strong financial outlook despite the currently flagging economy. There doesn’t seem to be any risk of hearing about their reaching for a bailout in the near future or filing for bankruptcy and leaving their customers high and dry. Our rating is an A minus.