Hanover Insurance Group Review

Hanover Insurance Group delivers all the coverage options most small and medium-size businesses need to protect against both common and unforeseen operating risks. While the company's financial ratings lag a bit behind top competitors, Hanover remains a solid insurance option for all kinds of businesses.

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The Good

Terrific variety of industry protection packages

Hanover Insurance Group delivers one of the most comprehensive business policy listings in the industry. If you have a small business, choose a basic business owner’s policy (BOP) for general liability and property coverage or select a comprehensive industry package to get the targeted protections you need to cover all your business interests. Hanover Insurance Group offers packages for more than 500 different types of small businesses in 15 different industries, from real estate to auto repair and manufacturing to professional services. Add-on coverage options include nearly every commonly available business insurance option in the industry, including business interruption insurance, professional liability insurance, product liability insurance, and commercial crime insurance, among many others. To extend your coverage even further, opt for a Hanover commercial umbrella policy.

Full selection of policies tailored to larger businesses

Alongside their superb small-business policies, Hanover Insurance Group also offers a full selection of policy packages designed specifically for medium-size companies with between 50 and 1,000 employees. These packages are built to deliver enhanced protections and coverage options to address the special risks associated with large operations. They also include integrated risk management services to help minimize or eliminate certain business risks common to your particular industry. Packages are available in two dozen industries, including manufacturing, printing, hospitality, and transportation, among others.

Nationwide network of affiliated agents

Hanover policies are sold by more than 5,000 independent, affiliated agents located in cities and towns across the country. When you buy a Hanover Insurance Group business policy, you get the one-on-one attention you need to be confident you’re getting the right coverage for your unique business needs. Although you’re likely to start with the industry protection package designed for your type of business, your local agent helps you make any policy modifications required to match the specific operational risks facing your company. Your local agent is equipped to assist you in initiating a claim, but do note the claims process is handled by the Hanover Insurance Group’s national claims center.

Comprehensive online account access

Although policies are sold by local agents, Hanover Insurance Group provides an excellent selection of online resources and tools for your account management needs. Online payment tools make it easy to pay your policy online whenever you’re ready. Make a one-time debit or credit card payment each month or set up an automatic recurring transfer from your checking account. If you need to make a claim on your policy, all types of business insurance claims can be initiated online using a straightforward claims-filing tool on the Hanover website. It should be noted that professional claims agents are also available by telephone around the clock. After setting up a Hanover account, you can even view and manage your policy online, a rare capability when it comes to business insurance. In fact, many other business insurance providers have really dropped the ball when it comes to online policy access and lag far behind the strong online performance of Hanover Insurance Group.

The Bad

Lagging financial ratings

When considering Hanover Insurance Group for your business insurance needs, it’s important to note the company’s somewhat mixed financial ratings. For example, A.M. Best gives the company an Issuer Credit Rating of “bbb,” which designates an insurance company that has a good, but not great, ability to meet ongoing financial obligations. This rating contrasts with a number of other top insurance providers in the industry, many of which boast ratings of “a” or “aa,” corresponding to an excellent or superior ability to meet ongoing financial obligations, respectively. In another example, the ratings agency Moody’s gives Hanover a middle-range grade of “Baa3,” very similar to the rating from A.M. Best. To be clear, there’s no indication from any major financial rating agency that Hanover Insurance Group is facing financial problems in the future. That said, the company’s ratings fall below many other top companies in the industry and it’s important to consider this when making a final policy decision.

Limited learning materials

If you’re interested in learning the ins and outs of business insurance policies, the Hanover Insurance Group website is not going to be much help to you. Apart from a very good glossary of insurance terms, there’s little in the way of educational resources to help you build an understanding of business insurance and its uses. Perhaps this is not surprising given the fact that local agents handle policy sales and can therefore deliver customer education in person. Nevertheless, it would be nice to see a bit more emphasis on online explanation on the Hanover website.

The Details

Financial Strength

  • A.M. Best FSR Rating: Not listed
  • A.M. Best ICR Rating: bbb
  • Moody's Rating: Baa3
  • Standard & Poor's FSR: Not listed
  • Standard & Poor's ICR: BBB-

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