There are essentially four (4) basic types of adjusters involved in the average insurance claim for property damage. The use of independent adjuster, staff adjusters and field staff adjusters varies with the risk that the insurance carrier is insuring. Public Adjusters, which are rarely needed or required in the average property or homeowner’s claim for damages, are hired by the insured (property owner). We’ll be reviewing why Public Adjusters aren’t really necessary in the near future.
Let’s start with the average property owner’s claim for common cause of loss perils not in a catastrophic situation. In small to mid-size insurance carriers there is usually a staff of adjusters based out of a home office that are commonly or duly known as carrier claim representatives. The carrier claim reps usually work out of a central office and handle the administrative portion of the claim such as gathering the proof of loss, witness information (if any), underwriting concerns, and last but not least: printing of the claim payment check (indemnification).
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In this second part of Loss Notification for Independent Adjusters we’re going to discuss what you might consider when writing a loss notification letter to an insured. We’ll get to claimants in another post. Please read Part I if you haven’t already because it sets some background up for the whole concept of writing these important documents.
The most important part of writing to an insured is to keep the all knowing and ever important independent adjuster mantra in the back of your mind, which is “I’m an independent adjuster conducting an investigation on behalf of said carrier.” Notice the period at the end of that sentence? It’s there for a reason.
We’re not trying to hide anything from the insured, rather there is nothing to tell or speak with the insured about at this point because independents rarely receive settlement authority without at least one brief report to our client with some form of evidence attached.
Bad faith lawsuits and claims against carriers, independents, and others happen far too frequently for the simple reason that the adjuster couldn’t keep quiet. This happens most often when an adjuster feels sorry for a person and thinks it would help to try and ease the insured’s concern by saying something aligned with a payment for coverage. This can damage the reputation of independent and staff adjusters alike because promising a coverage that doesn’t exist is bound to upset any insured or claimant. Sometimes, when there is clear coverage an insurer may have good reason to deny a claim such as information that responsibility rests with another party’s applicable coverage. This is information you may not be privy to in a loss assignment or something that the insured is hiding intentionally. Even then, it is not completely unheard of for an insurers to deny a claim for no good reason, which is exactly why you need to keep an emphasis on your impartial and non-biased view that relates strictly to the facts. Read more…
“An independent person and/or company working to provide loss assessment and claim handling to an insurance carrier, attorney or self-employed entity; not working in a payroll but on an “as needed” basis.
There really is no easy definition that can be made because an Independent Adjuster is many things; but not always at the same time. Looking at the phrase within we see “independent” and “adjuster”, (I/A for short) meaning the latter half of the title only becomes active when making an adjustment to something. What if there is no adjustment to be made?
We believe it is incorrect to reference a party as an “adjuster” when that person or entity is merely investigating a claim or surveying damages. Those folks would respectively be called independent investigators or surveyors. This theory is well evidenced as marine surveyors do not refer to themselves, or within their job community as “marine adjusters”. Read more…
