Verifying the financial stability of your insurance carrier before you purchase coverage should be a priority. Once you acquire a policy, your insurer has an ongoing financial obligation to you. You're depending on that company to be around to pay a claim if you need them to and that they'll be able to do so in a timely, efficient manner.

Just as you wouldn’t place your cash savings in an institution without FDIC backing or a sophisticated security system, you shouldn’t depend on an insurance carrier to safeguard your practice and property unless you’ve verified that carrier’s ability to resolve claims reliably. 

What should you look for to verify that your insurer is one you can count on?

Here are three factors for consideration: an A rating, good recommendations and a solid reputation. 

1. A history of financial strength 

Access to objective information about insurers’ 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 goal of insurance company financial ratings is to evaluate the financial strength of an insurer: how able the company is to withstand a struggling economy, increased claims or other financial hardship. A rating also includes things like the amount of cash the company has in reserve and whether the company has returned a profit in the recent past. 

AM Best ratings are based on a wide array of criteria relating to financial health, including: 

• Comparisons to industry standards and peers 
• The ability to pay claims, debts and financial obligations in a timely way 
• Sound business philosophy, management and operating performance 
• Enterprise risk management, including underwriting and investment risks 

In February, The Dentists Insurance Company received an A (Excellent) rating from AM Best for the 29th consecutive year. This sustained A rating reflects TDIC’s commitment to consistently review trends, audit service processes and evolve with policyholders’ needs. Because TDIC has earned a reputation for an excellent ability to meet insurance obligations, policyholders benefit from more security — even in a dynamic market and during challenging times. TDIC is built to be there when dentists need them most. 

2. The trust of your colleagues 

While ratings are a strong indicator of company strength, dentists often rely on peers and brokers for coverage recommendations. If facing a claim, you’ll want the peace of mind that your insurer is in your corner. 

Founded by a small group of California Dental Association members in 1980, The Dentists Insurance Company has grown to protect a community of more than 24,000 dentists across 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 products approved by peers. This leadership develops the policies, procedures and regulations for the operation of TDIC. If, for example, the company’s underwriters were not going to insure a dentist, that individual could appeal to a panel of their peers. 

From peer-led decisions to dividends returned to policyholders, TDIC keeps the best interests of dentists at heart. It’s a philosophy that has earned the trust of members of organized dentistry. 

In California alone, more association members choose TDIC for professional liability coverage than any other insurer. That confidence is underscored by earned endorsements from nine state dental associations. 

3. Dentistry-focused expertise

To protect dentists better than any other insurer, a company must understand dentists and their profession better. TDIC’s experts, analysts and in-house claims unit all deliver specialized expertise. With a singular focus on dentists for 42 years and counting, TDIC understands the details that make a difference in dentistry. In addition to trusted financial backing, TDIC offers policyholders a no-cost Advice Line for one-on-one consultations and a wealth of risk management resources. These resources include reference guides, publications, sample forms and ongoing seminars and e-learning designed specifically for dental professionals. 

The process of protecting your assets and guarding yourself from liability is just as involved 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 risks when you reach out to TDIC. 

Learn more about TDIC and explore strong coverage options for every stage of practice at tdicinsurance.com. 

AM Best Company rating effective February 2023. For the latest rating, access ambest.com.