Payson Farmers Mutual Insurance Company

Payson Farmers Mutual Insurance Company was organized in 1873 and is one of the oldest mutuals in the area.  Farmers in rural areas believed that they should not have to pay as much for insurance since they did not have as many claims.  To lower their costs, they grouped together and agreed to help each other out in times of need.  The mutual industry has built upon that, and today we have about 700 policyholders that we help protect.  We are reinsured with Farmers Mutual Hail Insurance Company of Iowa.

What is a Mutual?

Mutuals are different than traditional insurance companies in many ways.  First and most distinctive is that while stock insurance companies are owned by their shareholders, mutual insurance companies are owned solely by their policyholders.

In addition, mutuals don't pay out money to stockholders; they accumulate it in their funds to pay out losses.  Since more funds are available to be spent on claims, mutuals are able to offer lower rates and better service to their policyholders.

Payson Farmers Mutual is a member of both the Illinois Association of Mutual Insurance Companies and the National Association of Mutual Insurance Companies.