A.M. Best Ratings on Insurance Companies for Architects and Engineers
Insurance companies worldwide have an A.M. Best rating, what does this mean?
A.M. Best is a rating agency that provides a rating on each insurance company based on financial strength and creditworthiness of the company. It is important to know the insurance company you are purchasing insurance with has a stable outlook and will be financial sound in the event of a claim by your firm. The A.M. Best rating does not guarantee anything about the insurance company they do, however, provide an educated outlook on the company stability.
Not only it is important for your firm to know the financial stability of an insurance company but it may be a contract requirement. When reviewing a contract check to make sure that your insurance company meets the requirements of the contract with regards to the AM Best rating of a company. It may look something like: RATED”A++ (SUPERIOR) XV. The A++ rating is the stability of the insurance company and the XV is the financial size category. This insurance company has a financial size of $2 billion or greater.
For architects and engineers you should know the financial stability of all of the insurance companies your firm works with on Professional Liability, automobile insurance, business owner policy and workers compensation. If you are interested in looking up the A.M. Best rating of the insurance companies you are insured with the website is http://www.ambest.com/home/default.aspx.
As an insurance agent we strive to work with only A rated insurance companies for the peace of mind for our insured’s. If there is a change in the status of the insurance company that will be communicated. However, if you have any questions please call or email your Professional Underwriter.