AM Best Financial Strength Rating

An AM Best rating of A- or higher is considered "good" and is the threshold most vendor contracts require. The full scale runs A++ and A+ (Superior), A and A- (Excellent), B++ and B+ (Good), then down through vulnerable categories. For enterprise and government contracts, A- (Excellent) or better with a financial size category of VII or higher is the common minimum.

An A- rating falls in AM Best's "Excellent" category and indicates the carrier has a strong ability to meet its ongoing insurance obligations and pay claims. It sits just below the "Superior" tier (A++/A+). A- is widely accepted as the minimum acceptable rating in vendor and lender insurance requirements, so a carrier at A- or above will satisfy most contracts.

You can look up any carrier's rating for free on the AM Best website (ambest.com) using their company search. The rating also appears on your quote, policy documents, and often the COI. If you use a broker, they will confirm the carrier's current rating before placing your coverage so you know it meets your contract requirements.

No. Most established carriers are rated by AM Best, but some—particularly newer insurers, certain surplus lines carriers, and specialty markets—may be unrated or rated by a different agency (like S&P, Moody's, or Demotech). An unrated carrier isn't automatically unsafe, but it can fail vendor requirements that specifically demand an AM Best rating, so confirm before binding.