1.  IS COVERAGE AVAILABLE FROM A CARRIER RATED BY A.M. BEST COMPANY?

2.  IS THE INSURER’S FINANCIAL CONDITION IMPORTANT?

3.  DOES MY CARRIER NEED TO HAVE A GOOD A.M. BEST RATING?

4.  WHAT DO I NEED TO KNOW ABOUT A START-UP COMPANY?

5.  IS THE INSURER BACKED BY THE STATE GUARANTY FUND?

6.  HOW DO I AVOID BEING TRAPPED?

7.  HOW AM I PENALIZED FOR BEING MISINFORMED?

1. IS COVERAGE AVAILABLE FROM A CARRIER RATED BY A.M. BEST COMPANY?
Yes, both occurrence and claims-made coverage is available through an “A” (Excellent) rated carrier.

2. IS THE INSURER’S FINANCIAL CONDITION IMPORTANT?
Yes. When you purchase insurance, you are transferring a potentially catastrophic, economic loss to another party. You need to be sure that the company will be able to meet its obligation for the duration of your coverage. Review the company’s assets, surplus levels and premium to surplus ratio. Do not be persuaded by a new start up company that could be under capitalized.

3. DOES MY CARRIER NEED TO HAVE A GOOD A.M. BEST RATING?
Yes. Insurance companies are evaluated by several rating bureaus, most notably A.M. Best Company. A.M. Best performs both quantitative and qualitative tests in order to evaluate insurers. Another rating bureau, Standard & Poor’s, rates a carrier’s “claims paying ability”. Find out how your insurer is rated and what that means.

4. WHAT DO I NEED TO KNOW ABOUT A START-UP COMPANY?
When considering placing your business with a start-up company, it is important to consider the following:
• Does the company have a track record?
• What experience does the company's management have?
• How will your capital contribution be used?
• Is your capital contribution the right amount? If not, do you have to re-up more money?
• Is the company following the financial ratio guidelines set by the NAIC? (typical risk based capital ratios: 1 to 1 or up to 3 to 1).

5. IS THE INSURER BACKED BY THE STATE GUARANTY FUND?
Many states have guaranty funds that will provide you with some limited protection in the event that your insurer becomes insolvent. In most cases, only insurers admitted in the state are covered by guaranty funds. Find out if your insurer is covered and what level of protection you will be afforded in case of such an event.

6. HOW DO I AVOID BEING TRAPPED?
Your practice is unique and frankly, no one can predict what is going to happen in the future. Whether your practice is expanding, contracting or reeling from a recent crisis, you want an advocate, not a salesperson. An insurance advocate is an industry specialist who can search the entire insurance industry for the right company and policy for you….not someone who is contractually bound to represent just one company! No single company can offer the right coverage at the best price for everyone. Insurance companies build their coverage and pricing around tightly defined niches. Get the one that best serves you and avoid being locked-in to the wrong insurance program..

7. HOW AM I PENALIZED FOR BEING MISINFORMED?
It is important to stay informed about the latest changes in your state, but who is keeping you informed of the constant changes regarding your malpractice insurance? What do you know about the malpractice issues that directly affect you and your practice? C & R Insurance Services will make you a “smart consumer” and provide you with up-to-date information about market conditions, what carriers are in financial trouble and what carriers provide the best options for you. Do not allow yourself to make misguided decisions because you do not have all the correct, updated information relevant to your malpractice insurance.