One liability insurance better than other?

[Stan C.]

Is there such a thing as one liability insurance provider being better than others in terms or a chance of paying out liability claims? If so, what is the name of such insurance provider? Property would be in NC. 

This may help me decide whether I'd go the LLC route or sole proprietorship. But this thread is not about LLC vs sole proprietorship, but about insurance providers.

[John Mocker]

Stan,

There are several things you can look into to evaluate the claims handling/paying of an insurance company.  AM Best, Standard & Poors and a few other services rate the claims paying ability (financial strenghth, etc.) of Insurance companies.  Insurance departments in several states rate the companies based on average number of complaints per set number (per 100 or per 1000 policies).  That only takes into account complaints to the Insurance department.  Some times there will be an issue that gets resolved only when it it about to go to a complaint.  Lastly, I have not actually seen it but I think there is a rating of the companies by attorneys. 

The other way to compare is to contact an agent with multiple companies and have them give you a comparison of both price and claims service.   If the agency is large, they may also have an in-house claims person that deals with multiple companies claims. 

Be sure to evaluate if there are any exclusions that will impact the Liability (pollution, animals, etc.).  Depending on the type of property and the policy used to insure it, there may be endorsements you should consider.  

Hope this helps.   If you want more info feel free to PM me.