You Owe It to Yourself: Know Your Insurance Carriers’ Rating
As with most things, a little bit of homework in the beginning can save you a lot of time and money in the long run. We highly recommend that prior to purchasing insurance for your business, you take a moment to see how the carriers you are considering are ranked by industry recoginized ranking services.
We agree with Ryan Hanley, who has detailed on his site how you can determine where your insurance carrier stands:
AM Best is a widely used credit rating organization specializing in the financial and insurance sector. The AM Best system is an easy way for non-insurance folk to understand the quality of an insurance carrier’s financial stability
Here’s a brief but helpful summary of what the ratings mean:
A- to A++ is a quality rating, meaning AM Best deems the insurance carrier financially secure to meet all loss obligations. Good news for you and your carrier.
B+, B++ is a good rating, still considered secure by AM Best. You may want to check the AM Best website from time to time to make sure the rating stays strong.
B or below is a poor rating. If you have an insurance policy with a carrier rated B or below it would be prudent to contact your insurance broker and inquire about other options.