The Independent Insurance Claim Adjuster Resource

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…

Most independent insurance adjusting offices utilize some very common practices upon acceptance of an assignment.  The adjusting firm is usually required to make  contact with some combination of insured, claimant(s) and or witnesses, if any.

For your typical “common loss peril” such as hail or wind it’s generally acceptable to handle the loss acceptance via email and the loss notification to the insured with a phone call.  It seems perfectly normal that this is the standard for most every adjusting firm, but what about larger losses? What is acceptable to the client and their insured?  What provides for an adequate amount of protection without sparking the insured’s interest in retaining counsel or a public adjuster?

Though it’s the insured’s every right to have counsel, it is no secret that attorneys and public adjusters drive the claim dollar “through the roof”, and more often than not out of the adjuster’s hands.

Let’s get one thing straight out of the box here:  If you have been assigned a file with an expected loss of $50,000 in the property & casualty or liability fields, and aren’t working under a third party administrator then you need to consider writing a claim acknowledgement letter to the parties involved, for the protection of the insured, your client and your own self. Read more…