8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________

FORM 8-K

Current Report

Dated October 2, 2006 of

AMERICAN SAFETY INSURANCEHOLDINGS,LTD.
(Exact Name of Registrant as Specified in its Charter)

Bermuda(State
or Other Jurisdiction of Incorporation)

SEC File Number 001-04795

44 Church StreetP.O.
Box HM2064

Hamilton HM HX, Bermuda

(441) 295-5688

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR
240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) 12 under the
Securities Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) 12 under the
Securities Act (17 CFR 240.13e-2(c))

Item 8.01 Other Events of Importance to Security Holders

        On October 2, 2006, the Company issued a press release, which is attached as Exhibit 99.1 regarding A.M. Best’s affirmation of the Company’s financial strength ratings.

Item 9.01 Financial Statements and Exhibits

99.1 Press Release on Affirmation of A.M. Best Rating

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

                                            AMERICAN SAFETY INSURANCE HOLDINGS, LTD.
                                            Registrant


Date:  October 2, 2006              By:     /S/ Stephen R. Crim
                                            Stephen R. Crim
                                            President and Chief Executive Officer

EX-99.1

A.M. Best Affirms ‘A’ Rating and Changes Outlook for
American Safety Insurance Group of Companies to “Stable”

Hamilton, BERMUDA (October 2, 2006) — American Safety Insurance Holdings, Ltd. (NYSE:ASI) announced today that A.M. Best Company has affirmed the rating of “A” (Excellent) of its U.S. insurance and Bermuda reinsurance subsidiaries, and has changed the outlook to “stable”.

The rating applies to the members of the American Safety Insurance Group of Companies, which includes: American Safety Casualty Insurance Co.; American Safety Indemnity Co.; American Safety Reinsurance, Ltd.; and ASI’s non-subsidiary affiliate, American Safety Risk Retention Group, Inc.

“We are pleased that A.M. Best, the insurance industry’s premier rating company, continues to recognize our ongoing dedication to underwriting discipline and financial stability by affirming our “A” (Excellent) rating for the 11^th consecutive year,” said Stephen R. Crim, President and CEO of American Safety Insurance Holdings, Ltd., “The change to a stable outlook supports our improved underwriting results and our strong balance sheet.”

According to A.M Best’s Financial Strength Rating Rationale, “The rating reflects the Group’s favorable capitalization, profitable underwriting results and effective management of its insurance and investment programs. The rating further recognizes the Group’s underwriting expertise in its niche markets, the custom designed risk management programs it offers to clients, and its commitment to maintaining underwriting discipline.”

About Us:

American Safety Insurance Holdings, Ltd. (NYSE:ASI), a Bermuda-based holding company, offers innovative insurance solutions in the alternative insurance market for environmental remediation, contracting and other specialty risks through its program administrator, American Safety Insurance Services, Inc., and insurance company subsidiaries American Safety Casualty Insurance Company, American Safety Indemnity Company and its non-subsidiary affiliate, American Safety Risk Retention Group, Inc., which, as a group, are rated “A” (Excellent) VIII by A.M. Best.

This press release contains forward-looking statements. These forward-looking statements reflect the Company’s current views with respect to future events and financial performance. Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various factors. For additional factors, which could influence the results of the Company’s operating and financial performance, see the Company’s Form 10-Q, dated August 14 , 2006, as on file with the Securities and Exchange Commission.

Contact:
American Safety Insurance Services, Inc.                      Cameron and Associates
Bill Tepe                                                              Kevin McGrath
Investor Relations                                                     (212) 245-4577
(800) 388-3647