In today’s increasingly litigious business environment, insurance companies and their adjusters have the need of purchasing liability insurance for themselves. Insurance Adjuster’s Professional Insurance is a specific variation of Professional Liability (or Errors & Omissions) Insurance designed specifically for professionals in the insurance industry.
This type of insurance generally protects insurance firms and adjusters from financial losses and expenses (including legal fees) that result from a lawsuit (even a frivolous one) filed by any person who had some dealings with the company through an adjuster. Claims usually stem from some charge of “bad faith,” negligence, or misrepresentation, failure to provide adequate coverage, or improperly handling a claim. Some policies also protect against slander, libel, and breach of contract. Think of professional liability insurance as a type of “malpractice” insurance for professionals. Not only does it protect your assets, it can help protect your reputation.
What Claims Adjusters Insurance Is Not
Insurance professionals should be the first to know that they need to seek out professional liability insurance before a claim has been made against them, not after the fact.
Who Needs Insurance Adjusters Insurance?
Insurance companies and/or independent agents need professional liability insurance. It may actually be required by some states, and even if it isn’t, it usually makes good business sense to carry it, especially if you are involved in the claims department of the insurance business. A professional liability policy adds an extra measure of legitimacy to your practice, and gives prospective clients more confidence in your professionalism.
Insurance adjusters who work for insurance companies may elect to purchase additional professional liability coverage to offset a large deductible or to increase coverage limits.
Things To Think About
Insurance companies can usually lower the cost of premiums by having employees attend loss control seminars.
Some policies are designed specifically for property and casualty insurers, and others for those specializing in life, health, and accident insurance.
Most policies for insurance adjusters will cover partners, officers, producers, and full-time employees. If applicable, find out if a policy also covers part-timers and independent contractors like consultants.
You might also want to check with your professional association to see if they offer any type of professional liability insurance. Associations often offer it to members at a slightly lower cost.