The company was organized in 1868 in Preble Township, Adams County, by Wilhelm Gallmeier, to provide farmers with protection from property losses from fire or lightening. At that time, to be a member, one subscribed for a given amount as to the value of the buildings. The only premium was an assessment at the time of one of the members' loss. The loss was determined by neighbor members, who served as appraisers. The company carried no reserve or checking account, since there really was no need for it then.
In 2003, the company's name was changed from German Fire Insurance Company of Preble Township to German Mutual Insurance Company of Indiana. Since its founding, the company has expanded its primary coverage to Adams, Allen, Jay, and Wells Counties. The company has policies in over thirty Indiana counties and can write anywhere in the state of Indiana with the exception of Indianapolis. Today the company's policies are handled by three agencies who serve the needs of its policyholders. German Mutual members are additionally protected by the backing of a large reinsurer, which limits the company's exposure in the event of catastrophic losses. As a result, members now pay only coverage-based premiums rather than assessments when losses occur.
Yet while much has changed since 1868, German Mutual Insurance Company of Indiana is, as it was then, 100 percent owned by its local member policyholders. Its agents, officers and directors are all residents of the community it serves.