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ComplianceStandard / Universal

Carrier Rating — A.M. Best A- VII or Better

What this clause says

All policies shall be issued by carriers rated A- VII or better by A.M. Best Company.

What this means in plain English

Your insurance company has to be financially strong (rated A- or higher with at least $50M-$100M of surplus).

What it means for a CDMO program

Easy compliance for almost any standard market carrier. Watch for non-admitted/surplus lines carriers on hard-to-place coverages — some are A- rated and acceptable, but some boutique markets may not be. Confirm with broker before binding.

How this evaluates

The Decoder applies these rules in order; the first match wins.

  • compliance › am best rated is set → Compliant: Carriers meet A- VII rating.
  • compliance › am best rated is not set → Borderline: Verify all carriers meet A- VII minimum.

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Questions about compliance

Carrier Rating — A.M. Best A- VII or Better — common questions

Why do sponsors specify A.M. Best ratings?

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A.M. Best ratings indicate carrier financial stability. An A- VII or better rating signals the carrier is unlikely to be insolvent when a claim is paid. Sponsors require it to reduce counterparty risk on long-tail products liability claims that may not surface for years.

What does "A- VII" mean?

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A- is the financial strength rating (scale: A++ to D); VII is the financial size category (Class VII = $50M-$100M policyholder surplus). Together they specify both quality and scale.

Will my carrier qualify?

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Most life-sciences appetite carriers are rated A or A- and Class XII or higher. Smaller surplus-lines markets may not meet Class VII — verify before binding.