When choosing a professional employment organization (PEO), you need a partner who will help you mitigate risk and look out for your business’s best interest at every step of the journey.
How do you know if that is the case? One way to evaluate a prospective PEO is to assess their insurance carrier’s financial stability and longevity.
Who is AM Best, and what do they do?
Founded in 1899, AM Best provides credit ratings and financial data for the insurance industry. Globally, they are recognized as one of the most highly regarded insurance rating organizations.
AM Best’s mission is to strengthen the overall operating performance of the insurance industry by providing accurate, timely information about the financial stability of individual companies. To achieve that goal, they assess organizations based on a comprehensive rating system. Their Credit Rating Methodology consists of both quantitative and qualitative evaluations of the overall operating performance.
How does AM Best build a rating for workers’ compensation providers?
AM Best’s ratings range from A++ to D. The score is based on four main building blocks:
Balance sheet strength
Enterprise risk management
In short, if you’re looking for a reliable way to validate an insurance company’s reputation and financial stability, AM Best is the place to start. With an AM Best rating, you can be confident in the knowledge that an A or A+ rating indicates the carrier's excellent or superior ability to meet its ongoing insurance policy contract obligations. SouthEast Personnel Leasing, Inc. only partners with insurance carriers who are open about their financial standing. That way, we stay fully confident in their ability to serve our clients into the future.
Why is an AM Best rating so important for businesses looking for workers’ compensation coverage?
A helpful comparison to make here is around the idea of personal investments. If you were making a personal investment, you would look for a fiscally sound company that you expect to be in business for the long haul.
When partnering with a PEO for workers’ compensation coverage for your team, you are protecting a massive investment — the business that you’ve worked so hard to build. As with any investment, you don’t want to expose your company to anything that can jeopardize financial health and long-term success. If your PEO only works with carriers who have a high AM Best rating and proven standing in the marketplace, you’ll know your trusted partner will come through for you.
SPLI’s emphasis on AM Best ratings for the clients we serve
At SPLI, we know how hard it is to handle all the functions that lead to a successful business. Our goal is to provide you, the business owner, with peace of mind so you can focus on growing your business. We do this by working in tandem with insurance carriers and claims management companies to provide you with the best service possible. Our commitment to working with dependable insurance carriers who are rated A by AM Best is one of the ways we help you mitigate risk so your business can thrive.
Interested in seeing the 5 benefits to bundling workers’ compensation coverage and payroll ADMINISTRATION?
Get the infographic and understand the value of coupling these two functions together.