The company was established when a group of people in Berlin (now Kitchener), Ontario created a plan to protect themselves and their neighbours from the hardships caused by fire and lightning in 1871.

[4][5] On November 25, Economical Mutual Fire Insurance Company of Berlin issued its first policy on a house and barn.

[7] During World War I, the company became involved in controversy when its general manager, ex-mayor W. H. Schmaltz, opposed the renaming of the town of Berlin to Kitchener.

Ten years later, Economical expanded into the Maritimes through acquiring the Canadian operation of Northwestern Mutual Fire Insurance Association.

In 1947, the company began plans for a new head office building to be constructed at the corner of Duke and Queen in Kitchener.

[8] However, the following year, president Euler announced that preliminary estimates had been so high that the board had to revise its initial plans.

[16] In December 2010, the board of Economical Mutual Insurance Company announced its intention to pursue demutualization,[17] which would mean that some of its policy holders would become shareholders.

[23] Economical Insurance has been ranked in a Top 125 companies list in Training magazine for excellence in workforce learning and development in the year 2013.