What are contractors required to provide regarding their insurance policy?

Contractors are required to provide proof that their insurance policy is rated A or better by A.M. Best because this rating signifies a strong financial stability and reliability of the insurance provider. A.M. Best is a reputable agency that assesses the creditworthiness and overall financial strength of insurance companies. A rating of A or better indicates that the insurer has a good ability to pay claims, which is crucial for protecting clients and ensuring that contractors are adequately covered in the event of a liability or loss.

This requirement helps establish a baseline of trust and security in the contracting industry, ensuring that all parties involved can have confidence in the contractual agreements and the protection that insurance provides. Having high-rated insurance also emphasizes a contractor's professional integrity and commitment to quality business practices, which can be vital for maintaining good relationships with clients and fulfilling regulatory obligations.