How are Insurance Carriers Rated?

When selecting insurance for your business, it's crucial to choose a carrier that not only has the financial strength to cover claims but also the trustworthiness to back it up. Agencies like A.M. Best, Standard & Poor's, Moody's, and Fitch are key players in assessing the reliability of these carriers. They look at several important factors: the amount of money the company has saved (cash in reserve), how its debts stack up against its assets, the company's ethics and approach to risk management, the sources and stability of its income, and the quality (or caliber) of the policies the carrier offers. All these elements, when viewed together, provide a detailed picture of the insurer's overall performance and reliability

However, it's vital to remember that each rating agency has its unique set of standards and methods for grading. These ratings, while helpful, should be taken with a grain of salt. They mainly focus on the financial health of the insurance companies and might not fully capture other essential aspects like customer service. Therefore, while these ratings are a useful starting point, they shouldn't be the sole basis for your decision when insuring your business.

Erazo Insurance Services LLC works with multiple insurance carriers, and make a conscientious effort to find the best fit for your needs. Feel free to contact our team with any questions you may have!