Federated Rural Electric Insurance Exchange

What Federated Rural Electric Insurance Exchange does

Federated Rural Electric Insurance Exchange is a not-for-profit, member-owned reciprocal insurance exchange founded in 1957 in Wisconsin and currently headquartered in Lenexa/Shawnee, Kansas. It provides property and casualty insurance exclusively to rural electric cooperatives, operating as a licensed carrier across 42 states. The company's product portfolio centers on its All Risk Blanket Policy, which bundles Property, General Liability, Automobile, and Crime coverage into a single comprehensive package. Beyond the blanket policy, Federated offers 13 distinct coverage lines including Workers' Compensation, Directors and Officers Liability, Cyber Liability, Commercial Umbrella, Electromagnetic Field Liability, Railroad Protective Liability, and Surety Bonds, addressing exposures unique to rural electric utilities such as high-voltage linemen operations and EMF litigation.

The company's technology platform combines traditional insurance underwriting with member-facing digital tools. The S.A.F.E. (Stop And Focus Everyday) mobile app supports job safety briefings for line personnel working within Minimum Approach Distance, with a roadmap including Hazard Recognition, Near-Miss Reporting, and Vehicle Inspection. The Near-Miss Reporting Program aggregates incident data nationwide from member cooperatives to inform training. Distribution is entirely direct via territory-based Account Executives who must reside within their assigned regions, supplemented by a secure online Member Portal for policy management and claim reporting.

Federated generates revenue through recurring insurance premiums on a quote-based, annual billing model tailored to each member cooperative's risk profile. As a reciprocal insurance exchange, the entity is owned by its member policyholders (the rural electric cooperatives themselves) and governed by a Board of Directors representing 10 U.S. regions. The company maintains strategic partnerships with NRECA, the Energy Education Council's Safe Electricity program (350+ co-op members), and Touchstone Energy to reinforce its positioning within the cooperative ecosystem. There is no external parent company and no venture capital ownership.

Name

Federated Rural Electric Insurance Exchange

Legal name

Federated Rural Electric Insurance Exchange

Website

https://federatedrural.com

Company type

Private

Founded year

1957

Operating status

Operating

Headcount range

51–100 employees

Short description

Federated Rural Electric Insurance Exchange is a not-for-profit, member-owned reciprocal insurance exchange founded in 1957 that provides property, casualty, and specialized insurance coverages exclusively to rural electric cooperatives across 42 U.S. states.

Ownership category

akta.pro rank

Product category

Property & Casualty Insurance

NAICS

Direct Property and Casualty Insurance Carriers (524126), Insurance Carriers (5241)

SIC

Insurance Carriers, Nec (6399)

akta.pro primary industry

Crop & Farm Property Insurance (FSAJACAK)

akta.pro secondary industry

Electric Cooperatives (Rural/Member-Owned Utilities) (EUADABAC)

Keywords

• Rural electric insurance
• Property casualty coverage
• Cooperative insurance exchange
• Utility liability coverage
• Workers compensation insurance

Headquarters

HQ city

Shawnee

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Insurance Premiums: Federated generates revenue through insurance premiums charged to member rural electric cooperatives. The company offers an All Risk Blanket Policy covering property, general liability, automobile, and crime in one comprehensive package, plus additional specialized coverages including Workers' Compensation, Cyber Liability, Directors and Officers Liability, and Umbrella policies.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels6 records

Core offering

Federated Rural Electric Insurance Exchange is a not-for-profit, member-owned insurance exchange that underwrites and delivers property, casualty, liability, and specialty insurance coverages tailored specifically for rural electric cooperative utilities. Its core offering is an All Risk Blanket Policy bundling Property, General Liability, Automobile, and Crime coverages, supplemented by Workers' Compensation, Cyber Liability, Directors and Officers Liability, Electromagnetic Field Liability, Umbrella, Railroad Protective, and Surety Bonds.

Product overview

Federated Rural Electric Insurance Exchange offers a unified insurance platform centered on its All Risk Blanket Policy, a comprehensive package combining Property, General Liability, Automobile, and Crime coverage for rural electric cooperatives. This core policy serves as the foundation, with optional Commercial Umbrella and Cyber Liability endorsements available for additional protection. Beyond the primary blanket policy, Federated provides specialized coverages including Workers' Compensation, Directors/Officers/Managers Liability, Electromagnetic Field Liability, Railroad Protective Liability, and Surety Bonds. The company also offers supplementary solutions through regional and national carriers for Earthquake, Flood, Builders' Risk, and Boiler & Machinery coverage. Additionally, Federated operates a Near-Miss Reporting Program to collect incident data nationally and has developed the S.A.F.E. (Stop And Focus Everyday) mobile app for job safety briefings. The product portfolio spans 13 distinct insurance products designed specifically for rural utility cooperatives.

Differentiator

Problem solved

Functional benefit

Brands

• S.A.F.E. (Stop And Focus Everyday): A job planning app created by Federated to elevate focus on work that requires entrance within Minimum Approach Distance (MAD). The purpose of the app is to direct line personnel's attention to Life-Saving Rules used to help build and reinforce safe habits.

Products and services

• All Risk Blanket Policy Comprehensive insurance package written specifically for rural utilities, bundling Property, General Liability, Automobile, and Crime coverage into one policy with no coinsurance requirements, blanket loss limits, and replacement cost coverage on most items.
• Property Coverage All-risk direct physical loss coverage for member utility buildings, contents, inventory, tools, mobile equipment, radio towers, and substations, with blanket loss limits, replacement cost coverage, no coinsurance, and full coverage for property in transit.
• General Liability Coverage Coverage for bodily injury, personal injury, and property damage liability alleged by third parties due to member utility negligence, with no aggregate liability limits for bodily injury or property damage claims and deductibles starting at $0.
• Automobile Coverage Fleet coverage for member utility vehicles with automatic coverage for all automobiles, attached hydraulic equipment on a replacement cost basis, and comprehensive deductible waived for windshield chip repairs.
• Crime Coverage Coverage for employee dishonesty, loss of monies and securities on and off premises, counterfeit currency and money orders, depositors forgery, and unauthorized use of company credit cards by employees.
• Commercial Umbrella Policy Supplemental policy designed to complement the All Risk Blanket policy, providing limits above underlying General Liability, Auto Liability, or Employers' Liability limits for catastrophic events.
• Cyber Liability Coverage Coverage for security breaches involving members' or employees' personally identifiable information including breach response, customer notification, credit monitoring, regulatory fines and penalties, and third-party liability for virus attacks, denial of service attacks, or malicious code transmission.
• Directors, Officers and Managers Liability Policy Protection for member utilities from lawsuits alleging wrongful acts by directors, officers, trustees, managers, staff members, volunteers, or employees, with entity coverage, Employment Practices Liability coverage, and ERISA coverage.
• Workers' Compensation & Employers' Liability Coverage Statutory Workers' Compensation and Employers' Liability coverage utilizing NCCI's standard policy form to fulfill state statutory requirements, with Other States coverage (except ND, OH, WA, WY) and RUS endorsement.
• Electromagnetic Field Liability Policy Specialized claims-made coverage for bodily injury, property damage, or devaluation of real estate resulting from electromagnetic field lawsuits, with a $10,000 deductible for real estate devaluation claims.
• Railroad Protective Liability Policy Coverage designed for member utilities performing work within 50 feet of a railroad, providing a cost-effective alternative to railroad master policies with automatic coverage cessation when work is complete.
• Surety Bonds Notary Bonds, Right-of-Way Bonds, Permit/License Bonds, and Bid/Performance/Payment Bonds to assist member utilities with national, state, and local regulatory compliance.
• S.A.F.E. (Stop And Focus Everyday) Mobile App Mobile job planning app for line personnel that directs attention to Life-Saving Rules used to build and reinforce safe habits; features include Hazard Recognition, Near-Miss Reporting, and Vehicle Inspection. Available for iPhone and Android.
• Near-Miss Reporting Program A national database and reporting program designed to identify and communicate incidents and hazards experienced by cooperatives; data collected is used to develop training programs aimed at eliminating future accidents.

Quantifiable outcome

• Handles hundreds of claims every year from insured systems

Named customers16 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Four partnerships are on record, tiered core and minor.

• NRECA (National Rural Electric Cooperative Association)coreStrategic or Co-development PartnerFederated works closely with NRECA on safety initiatives including the Commitment to Zero Contacts initiative, which provides cooperative CEOs, senior leaders and field personnel with key recommendations and resources needed to eliminate injuries by electrical contact.
• Safe Electricity (Energy Education Council)coreStrategic or Co-development PartnerFederated is a proud sponsor of Safe Electricity, the multi-media public awareness program of the Energy Education Council. Safe Electricity provides life-saving information through radio and television public service announcements, videos, news releases and articles. Federated sponsors this program to help increase power line awareness and farm safety.
• Touchstone EnergyminorGTM or Marketing PartnerTouchstone Energy is a national cooperative network committed to community connection through member cooperatives. Federated displays the Touchstone Energy logo on their website, indicating a marketing partnership within the cooperative ecosystem.
• Safe Electricity Member Co-opsminorOthersSafe Electricity has over 350 co-op members who access the safety education resources. These represent potential and actual member systems for Federated insurance services.

Scale indicators4 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• Co-operative Insurance Companies (CIC): Mutual insurance company serving cooperatives across multiple sectors (including rural electric) with property, casualty, and group benefits. Comparable cooperative/mutual ownership model and similar vertical focus, though broader across cooperative types.
• Shelter Insurance: Mutual insurer with strong presence in rural Mid-American markets, offering personal and commercial P&C coverage. Similar mutual structure and rural-segment focus, though broader and not utility-specialized.
• Farm Bureau Financial Group: Large multi-line insurer serving rural and agricultural customers across the US through state Farm Bureau organizations. Comparable rural customer base and broad P&C offerings, though does not specialize in utility-specific risks.
• Grange Insurance: Mutual insurance company serving rural and suburban customers across the US with personal and commercial lines. Comparable mutual structure and rural customer overlap with Federated's member cooperatives.

Direct peers

• Energy Insurance Mutual: Captive mutual insurer providing property, liability, and other coverages specifically to energy and utility companies. Highly comparable mutual/captive structure and similar narrow industrial focus to Federated.
• Electric Insurance Group: Specialty insurer focused on the electric and energy utility industry, offering personal and commercial coverages to utility employees and the broader energy sector. Most direct analog to Federated in combining utility-industry specialization with multi-line insurance offerings.
• NRECA (National Rural Electric Cooperative Association) Group Insurance Programs: The national trade association for rural electric cooperatives that administers group insurance and benefit programs for its member systems. Competes with Federated for the same member-cooperative insurance dollar and benefits from the same association-driven distribution.

Regional players

• Rural Mutual Insurance Company: Wisconsin-based mutual insurer specializing in rural and agricultural property and casualty coverage. Comparable rural-segment focus and mutual structure, though serves a broader rural customer base rather than electric utilities specifically.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/federated-rural-electric-ins

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Federated Rural Electric Insurance Exchange