Factory Mutual

What Does Factory Mutual Mean?

Factory Mutual (FM) is an insurance company based in Johnston, Rhode Island, with additional offices in other countries. It specializes in providing coverage to corporations and their facilities and is particularly recognized for its focus on loss prevention.

Insuranceopedia Explains Factory Mutual

Factory Mutual was founded in 1835 by Zachary Allen, a textile mill owner in Rhode Island. After being denied a request for a lower premium by an insurer, he collaborated with other textile owners to establish an insurance company focused on loss prevention, particularly against risks such as fire.

FM has since built a strong reputation for providing coverage to properties that adhere to high standards of loss prevention. The company has also maintained a research and engineering team dedicated to enhancing loss prevention practices in corporate facilities, including factories.