CARRIER RATINGS: Have the
Necessary Process in Place
by Curt Pearsall, CPCU, AIAF, CPIA President – Pearsall Associates, Inc.
and Consultant to the Utica National E&O Program

Rating agencies such as A.M. Best, Demotech, S&P, etc., periodically dissect the financials of nearly every insurance carrier in the marketplace. Ratings can change based on these reviews, so have a process to secure a carrier’s most up-to-date information. Every agency should have an established minimum financial rating for the carriers they do business with.

While a minimum rating of “A-” using the A.M Best rating approach is common, consider how your E&O carrier addresses insolvency in the policy form.