Often overlooked during an insurance purchase is the insurance financial ratings of the company you’re considering doing business with.
Its equally important to understand what the insurance financial ratings of the insurance carrier you currently do business with as well.
AM Best is a widely used credit rating organization specializing in the insurance financial ratings. AM Best has a long history of insurance financial ratings and can be considered a trusted source of information for comparison between insurance companies.
The AM Best system is an easy way for non-insurance folk to understand the quality of an insurance company’s financial ratings.
In New York State, most insurance carriers you as a retail consumer of insurance products find will have an AM Best ratings of A- or better. Occasionally you will find a carrier with a B+ or B++ rating. For the average personal home insurance and auto insurance purchase you have nothing to worry about if your carrier is rated B+ or better. Follow the link (Click Here) and check out the insurance financial ratings for your current insurance carrier.
How did your insurance carrier do?
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 NY insurance policy with a carrier rated B or below it would be prudent to contact your insurance broker and inquire about why you are with this particular insurance carrier. In some instances your unique risk may require an insurance carrier with a less than stable financial rating.
Don’t go crazy with the insurance financial ratings of an insurance carrier.
Don’t choose an A+ rating over an A- rating if it doesn’t make sense to do so otherwise because of coverage and price.
On a personal and small business insurance level you should base a buying decision on A- versus A+ financial rating. Far more important to the personal and small business insurance consumer is a carrier’s Claims Rating. However, in tumultuous economic times it is wise to understand the insurance financial ratings of your carrier.
If you have any questions about the financial rating of your insurance carrier or you would like a quote on your insurance program from a financially secure insurance carrier call us at (518) 456-6688 or you can click here to email us.