Being an A-rated insurance company is what most businesses strive to achieve. Not only does it look good, but it also means you’re more likely to bring in customers. Companies are given a financial rating, based on their financial strength.
We tend to look out for A-rated companies as this shows how financially stable they are. Here at Lawshield we are provider of the LEI to brokers. This means that our cover is A-rated, so it’s reliable and trustworthy.
What is insurance rating?
Insurance ratings basically show how reliable a company is to pay out if your client needed to make a claim. The highest rating an insurance company can receive is an ‘A’ rating. This rating directly reflects their ability to handle and settle claims.
When looking for an insurance company to go with, you’re going to want to look for one offers A rated insurance. This gives you and your client one less thing to worry about as you know they are trustworthy, and they’ll be able to handle a claim should your client make one.
What’s on the insurance financial strength rating criteria?
Financial strength ratings take into account many different aspects of a business. These are based on both the business as a whole and their finances. This includes when the company was formed, how much debt they have or have had, how they handle risks, what their investments are, and much more.
Unlike personal credit reports, you can access a business’s rating online by searching for the company. From here you can make your own judgement about whether they are a company that you would like to enter into business with.
Why is insurance rating important?
A company’s insurance rating is important as it gives you a clear indication of how dependable they are, and how capable they are to settle claims. Similar to our own personal credit scores, a high rating shows how financially reliable you are. However, for a business, this can have a substantial impact on their trading if they have a low rating.
Customer feedback is really useful and is often a strong indicator of how reputable a company is, which helps make it easier when choosing one to go with. Research is also important when you’re choosing an insurance company. Reading other people’s experiences with an insurance company can be useful as you can hear firsthand how the situation was handled, and what the outcome was.
Make sure you do business with an A-rated company
A-rated insurance companies are less likely to face financial issues, which means that when your client has a genuine claim, there will be no hesitation on whether they’ll be able to meet the client’s needs. Companies which are rated B or below, have a higher risk of going bankrupt, which is a stress for everyone.
If a company doesn’t have an insurance rating, it means that there isn’t enough evidence on their ability to pay claims. It’s best sticking with companies you know and trust, especially when it’s something as serious as insurance.
Why should you choose Lawshield?
Here at Lawshield we’re proud to be able to provide brokers and insurers with a range of opportunities to distribute insurance ancillary products. As well as this, we make sure that all our capacity providers are A rated.
We have an excellent team with over 25 years’ experience delivering market-leading legal expenses and claims management services. We offer a wide range of products, and have bespoke systems designed around you and your business. If you’re a broker and would like more information, contact us today to find out more.
