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IIPGA International Inflatable Products and Games Association Is Your Insurance Company "A+"?

Rating information online at www.ambest.com

More and more new inflatable operators are opening new businesses, and when developing their business plan it is recommended that they include liability insurance protection in their costs whether it is a state requirement or not. One of the most important aspects of obtaining an insurance policy is, to try and secure insurance coverage if possible with a company who has been rated “A” or better by A.M. Best Rating. Best’s Rating is an independent opinion, based on a comprehensive quantitative and qualitative evaluation of a company’s operation. Their key rating factors are capital strength, operating performance and business profile. Best’s ratings are not a warranty of a company’s ability to meet its ongoing financial obligations however. Anything less than an “A” rating is not recommended.

The financial performance from insurance companies is most stable with the higher ratings. Insurance agencies who represent companies carry Errors and Omissions coverage and are required to place coverage only through “A” or better rated companies to meet their own insurance policy guidelines. Also many event contracts today have the insurance specifications as part of the agreement requiring to them to provide proof of insurance with an insurance company who has at least an A rating. Admitted companies all have a rating and if an insurance buyer is unaware of the financial rating of a company, they can find the rating information online at www.ambest.com.

Also there are differences between Admitted and Non-Admitted insurance programs you should be aware of. Admitted company structures are beneficial because they comply with local insurance regulations; enable tax and claim payments to be made locally and allow for locally allocated premiums and corresponding tax deductions. They also give insureds access to local government pools and provide local certificates of insurance.

Admitted or authorized companies are those authorized by the state insurance division to conduct business. A license or certificate of authority is issued to an admitted company.
Admitted carriers do not always meet the needs of all insurance buyers due to underwriting criteria. When this happens, non-admitted carriers are then selected as they are used mainly for specialty risks or hard to place business. They are often U.S. based companies that have chosen not to become an admitted carrier in any one state.

Non-admitted policies are issued by an insurance company in a state in which it is not licensed and are not involved in the state solvent fund. Some advantages of this include absolute control over coverage terms and insurance buying decisions and lower costs. Some challenges are non-compliance with local laws and possible state penalties, such as fines, no access to government pools and no local certificates of insurance.

You may also come upon insurance agents or companies they represent who are not able to help you secure insurance for several different reasons. It could be due to their lack of licensing within the state you reside in and/or because their market strategy for certain product lines is to write only in nearby states. It also could be due to the difficulties to do business within certain states for litigious reasons.

Our agency has an insurance program with an Admitted insurance company who has been rated A+ by A.M. Best and they are licensed to do business in the states of Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio and Wisconsin. We are able to insure in all of these states listed plus some additional states including Missouri, Pennsylvania, and Kansas and are in the process of expanding the territory we want to do business in and are obtaining licenses for those states. Please call us to find out if we can help you with your insurance needs. You are welcome to visit our website of
www.friedman-group.com where you can submit a request for an insurance quote or call us toll free at 877-580-7066.

This article has been provided by Sandra Swift at Friedman Insurance, Inc.

Article Submitted By:  Sandra Swift