Sheboygan Falls Insurance Company was founded in 1899, by two enterprising businessmen from Sheboygan Falls who were looking for a way to protect their own assets and those of other area property owners. They developed a mutual association for the purpose of providing individuals with fire insurance and on May 3, 1899 the Village of Sheboygan Falls Mutual Fire Insurance Company was organized under the laws of the State of Wisconsin. The Company adopted it present name in 1934.

Over the years, the Company has expanded its products to include homeowners, personal auto, dwelling packages, inland marine, personal umbrella, general liability, commercial packages, workers' compensation and commercial auto.

On June 7, 2007 Sheboygan Falls Mutual Insurance Company entered into an affiliation with Donegal Mutual Insurance Company of Marietta, Pennsylvania. This strategic affiliation was designed to make Sheboygan Falls Mutual a more aggressive competitor in Wisconsin through enhanced technology and product expansion.

On December 1, 2008 Sheboygan Falls Mutual Insurance Company converted from a mutual insurance company to a stock insurance company and changed its name to Sheboygan Falls Insurance Company. Simultaneously, it became a wholly owned subsidiary of Donegal Group Inc. Its home office continues to be located in Sheboygan Falls, Wisconsin.

Donegal Mutual owns the majority of the common stock in Donegal Group, Inc., a regional insurance holding company whose insurance subsidiaries offer property and casualty insurance in five Mid-Atlantic states (Delaware, Maryland, New Hampshire, New York and Pennsylvania), eight Southeastern states (Alabama, Georgia, Louisiana, North Carolina, South Carolina, Tennessee, Virginia and West Virginia) and five Midwestern states (Iowa, Nebraska, Ohio, Oklahoma and South Dakota).

Marking its 100th anniversary in 1999, Sheboygan Falls Insurance Company continues to offer excellent service to its policyholders based on the Company's long-standing motto of SERVICE with STRENGTH and STABILITY.