Verifying the financial stability of your insurance carrier before buying coverage should be a priority. After you obtain the policy, your insurance company has an ongoing financial obligation to you. You depend on that company to pay claims if you need them and that they can do it in a timely and efficient manner.
Just as you wouldn’t place your cash savings in an institution without FDIC support or a sophisticated security system, you shouldn’t rely on an insurance company to protect your practice and property unless you have verified the carrier’s ability to settle claims reliably.
What should you look for to verify that your insurance company is one you can rely on?
Here are three factors to consider: A rating, good recommendations and a solid reputation.
1. History of financial strength
Access to objective information about an insurer’s financial strength and stability can help you make informed coverage decisions.
Founded in 1899, AM Best is the world’s largest credit rating agency specializing in the insurance industry. The purpose of the insurance company’s financial rating is to evaluate the financial strength of the insurance company: how well the company survives economic difficulties, increased claims, or other financial difficulties. Ratings also include things like the amount of cash the company has and whether the company has made a profit in the past.
The Best AM rating is based on a variety of criteria related to financial health, including:
- Comparison with industry standards and peers
- Ability to pay claims, debts and financial obligations in a timely manner
- Sound business philosophy, management and operating performance
- Enterprise risk management, including underwriting and investment risk
in February, Dentist Insurance Company received an A (Excellent) rating from AM Best for 29 consecutive years. This continuous A rating reflects TDIC’s commitment to consistently review trends, audit service processes, and evolve according to the needs of policyholders. Because TDIC has earned a reputation for excellent ability to meet insurance obligations, policyholders benefit from better security — even in dynamic markets and during difficult times. TDIC was built to be there when dentists need it most.
2. Trust your co-workers
While ratings are a strong indicator of a company’s strength, dentists often rely on peers and brokers for coverage recommendations. If facing a claim, you’ll want the peace of mind that your insurance company is on your side.
Founded by a small group of members of the California Dental Association in 1980, Dentist Insurance Company has grown to protect the community of more than 24,000 dentists in 15 states. While the number of policyholders and products has increased over the years, TDIC’s focus remains dentist-centric, led by a board of dentists with peer-approved products. This leadership develops policies, procedures, and rules for the operation of TDIC. If, for example, a company underwriter won’t insure a dentist, the individual can appeal to a panel of their peers.
From peer-led decisions to dividends returned to policyholders, TDIC looks after the best interests of dentists. This is a philosophy that has earned the trust of members of organized dentistry.
In California alone, more associate members choose TDIC for professional liability coverage than any other insurance company. That confidence is underscored by the support garnered from nine state dental associations.
3. Dentistry-focused skills
To protect dentists better than other insurance companies, companies must understand dentists and their profession better. TDIC’s in-house experts, analysts and claims unit all provide specialist expertise. With a singular focus on dentistry for 42 years and counting, TDIC understands the details that make a difference in dentistry. In addition to trusted financial support, TDIC offers policyholders a free Advice Line for face-to-face consultations and a wealth of risk management resources. These resources include reference guides, publications, sample forms, and ongoing seminars and e-learning designed especially for dental professionals.
The process of protecting your assets and protecting yourself from liability is as important as any major purchase in life, if not more. This is especially true when you have complex coverage needs for your unique situation. Know that you have the support you need to find the right coverage to manage your risk when contacting TDIC.
Learn more about TDIC and explore robust coverage options for every stage of practice at tdicinsurance.com.
The AM Best Company rankings are effective February 2023. For the most recent rankings, access ambest.com.