May 22

Will Your Insurance Carrier Be Able to Pay Your Claim? Here’s One Way to Tell

When a large claim is made against your business, are you confident your insurance company will be able to pay it? Your balance sheet and financial future are on the line.

An insurance carrier is not just a provider, but a long-term financial partner you rely on to keep your business out of a financial hole.  If financial obligations from your chosen partner can’t be met right away or at all (i.e., not paying your claim or slow payment), your business could be left digging for cash. To help prevent this from happening, the financial strength of an insurance company needs to be considered before you purchase coverage.

Rating the Financial Strength of Carriers

The system used by A.M. Best, a respected rating agency, grades the financial strength of an insurance company from financially secure “A++ (Superior)” to vulnerable “S (Suspended).” Each grade indicates how likely the carrier is able to meet its financial obligations to policyholders.

What does this mean to you? Similar to a school system, carriers receiving a grade of “A-” and above are top performers.  They’ve shown financial stability and appear to have a positive long-term financial future, meaning they’re trusted to back you up when needed. Carriers receiving a “B++” and below have some work to do.  They’re often dismissed by brokers and business owners because their long-term financial futures are uncertain.

A.M. Best – Insurance Financial Strength Rating Scale

 Secure  Vulnerable
 A++, A+ (Superior)  B, B- (Fair)
 A, A- (Excellent)  C++, C+ (Marginal)
 B++, B+ (Good)  C, C- (Weak)
   D (Poor)
   E (Under Regulatory Supervision)
   F (In Liquidation)
   S (Suspended)

 

To give policyholders security and peace of mind, NIP Group is only backed by “A” rated carriers. Our comprehensive insurance programs can be custom-tailored to address the unique risks of each client, helping to avoid damaging claims. In the case that a claim does occur, we’ve got you covered immediately. In other words, NIP Group is a top performer.

Need a boost of confidence for your financial future? Check out these insurance programs backed by “A” rated carriers to find one that best fits your needs.

Would you like to become an NIP Programs Broker? Contact Us