Claims Adjuster Insurance Policy Information
Claims Adjuster Insurance. Whenever a private individual, commercial venture, non-profit organization, or public institution files an insurance claim, that claim is analyzed by a claims adjuster.
Adjusters evaluate policy contracts to verify coverage for a submitted insurance claim and determine the amount of payment, if any, is due to the claimant. Claims may be first-party property claims or third-party liability claims.
The adjuster may need to work with outside consultants, such as accident reconstruction specialists or fire inspectors. Adjusters are held to a high degree of professional care as the interests of both the insurer and the policyholder must be properly addressed.
Adjusters are required to be licensed in most states. Adjusters generally work for insurance companies but may offer their services independently to policyholders who prefer to work with a third party rather than their own insurer.
If work is done for the general public, the adjuster may assist the claimant in documenting the loss, and receives a percentage of the claim settlement. Adjusters may be generalists, or they may specialize in a particular line of insurance, such as property, liability, or workers compensation.
These professionals will carefully consider the merits of each claim by verifying the basic facts and assessing the value of the damage, among other things. As such, claims adjusters can be investigators working on behalf of insurance.
They can also, however, be hired by a policyholder, typically after the insured disagrees with the payment offered.
As such, claims adjusters may be employees, but they can also own and manage their own companies. Claims adjusters may be deeply familiar with the benefits and limitations of insurance coverage in a professional context, but they also - of course - need to protect their own ventures from the same major perils they are likely to encounter on a daily basis.
What kinds of claims adjuster insurance policies are most important for adjusters who are looking to safeguard their financial future?
Claims adjuster insurance protects your claim adjusting business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked broom and brush manufacturing insurance questions:
- How Much Does Claims Adjuster Insurance Cost?
- Why Do Claims Adjusters Need Insurance?
- What Type Of Insurance Do Claims Adjusters Need?
How Much Does Claims Adjuster Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small broom and brush manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Claims Adjusters Need Insurance?
Licensed claims adjusters who work as contractors or run their own companies both have insurance needs that stretch beyond those of private individuals, as they face both risks that are universal to any commercial operation and professional hazards specific to this line of work.
The exact nature of the threats a claims adjuster should insure themselves against will depend on the scope of their activities, but the fact remains that any claims adjuster could fall victim to unforeseen, and disastrous, circumstances.
claims adjusters with a dedicated commercial venue could face acts of nature, thefts, acts of vandalism, or accidents that lead to extensive property damage or loss - like accidental fires. Vehicular accidents or car thefts in which sensitive client data are stolen are other examples of perils claims adjusters could encounter.
On the liability side of the equation, claims adjusters have to consider a spectrum of perilous scenarios. A claims adjuster or an employee of the company they own could inadvertently damage third party property, or a visitor to the premises could be injured due to neglectful maintenance. A client could accuse a claims adjuster of missing something in their assessment, or not carrying their professional duties out diligently.
Because any major peril that could befall your company may lead to either costly property loss or serious legal expenses, it is crucial to opt for the proper claims adjuster insurance, not only to meet your legal obligations but also to protect the future of your business.
What Type Of Insurance Do Claims Adjusters Need?
The types of coverage a claims adjuster will need to carry depend on factors like the jurisdiction where they are based, the exact nature of their work, and whether they have hired employees and possess office premises.
It is always important to talk to a reputable commercial insurance broker to evaluate your unique risk profile and needs, but among other kinds of claims adjuster insurance needed are:
- Commercial Property - Any business with significant physical assets - not only a physical building, owned or rented, but also smaller assets like computers, HVAC systems, and furniture - also requires commercial property insurance. While it will cover a significant portion of property loss or damage caused by circumstances beyond your control like theft, vandalism, and acts of nature, floods coverage is not usually provided and may therefore have to be purchased separately.
- Professional Liability - Anybody can make professional errors, but when a claims adjuster does so - or a client merely accuses them of negligence, even if no mistakes were made - massive legal expenses can follow. That is why errors and omissions insurance, or professional liability coverage, which covers legal expenses up to predefined limits, is the first claims adjuster insurance policy any adjusters should acquire.
- Commercial General Liability - Many claims adjusters will also require commercial general liability insurance to shield themselves against costs associated with third party bodily injury or property damage claims. This is especially important if clients visit your premises.
- Commercial Auto - Should you drive a professional vehicle, as will almost certainly be the case, commercial auto insurance is inescapable.
Claims adjusters who run companies that hire employees will further require workers' compensation insurance to guard themselves from costs and litigation if an employee were to suffer a work-related injury.
Cyber security insurance is another type of coverage that should be on your radar, as you will be the guardian of important electronic data. For full insights into your claims adjuster insurance options, always consult a commercial insurance broker.
Claims Adjuster's Risks & Exposures
Premises liability exposure is often very limited as most of the claimant contact is done over the phone, electronically or by mail. If claimants visit the premises, they must be confined to designated areas to prevent them from observing other clients' confidential information or overhearing private conversations.
To prevent slips, trips, or falls, all areas accessible to claimants should be well lighted with floor coverings in good condition. The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
Off-site exposures are extensive as adjusters may spend a lot of time either at loss sites or at claimants' premises. There must be training and procedures for appropriate off-site behavior. Complaints about adjusters should be dealt with quickly.
Personal injury liability exposures include allegations of assault, breach of confidentiality, discrimination, and invasion of privacy.
Professional liability exposures arise from the adjuster's analysis of the information developed on any claim. Settlements are made based on statements made by the applicant's family members or employees and can involve millions of dollars.
Adjusters have legal responsibilities to both the insurer and the insured and are often party to sensitive negotiations. Hazards increase if the firm fails to conduct thorough background checks to verify employees' education, employment history, and licensing.
Workers compensation exposure is based on the type of losses adjusted and whether the adjuster works in the office or off-site. Since office work is done on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations.
Travel may be extensive. Exposures increase with off-site work as the adjuster may work in damaged buildings or under other compromised conditions. Adjusters may be injured by slips and falls, falling objects, respiratory ailments from inhaling dust or other allergens, foreign objects in the eye, hearing impairment from noise, assaults, or in vehicle or aviation accidents. Protective gear must be provided in certain circumstances.
Property exposure is generally limited to that of an office. Ignition sources include wiring, heating and air conditioning systems, wear, and overheating of equipment. There may be storage of client information in paper form, although these are now often digital instead of paper format.
Storage of paper documents should be in fireproof cabinets. Fire suppression systems must not damage the papers. Computers and other electronic equipment may be targets for theft. Occasionally, an adjuster will take a claimant's property for salvage.
Inland marine exposure is from accounts receivable if the adjuster offers credit, computers, special floaters, and valuable papers and records for claimants' and insurers' information. Adjusters do field work, which requires a variety of specialty equipment to do their evaluations.
The customers' papers on file may be originals that are difficult to re-create. A morale hazard may be indicated if the adjuster does not keep valuable papers and disks in fireproof file cabinets to protect them from smoke, water, and fire.
Power failure and power surges are potentially severe hazards. Duplicates should be kept off-site to allow for re-creation in the event of a loss.
Crime exposure is from employee dishonesty and various types of fraud to both insurers and claimants. The exposure can be quite serious as adjusters have access to individual customer's personal and proprietary information and have the authority to write drafts or checks on the insurer's account. Background checks should be conducted on all employees.
Hazards increase without monitoring procedures and securing all records to prevent unauthorized access. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements.
Audits should be conducted at least annually. Collusion with claimants, repair shops, and medical staff is possible.
Business auto exposure will vary. Adjusters may use rental cars when loss sites are not local. If company vehicles are supplied for use, there should be written procedures in place regarding personal use by employees and their family members.
All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and records kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 6411 Insurance Agents, Brokers, And Service
- NAICS CODE: 524291 Claims Adjusting
- Suggested ISO General Liability Code(s): 41677
- Suggested Workers Compensation Code(s): 8803, 8810, 8742
Description for 6411: Insurance Agents, Brokers And Services
Division H: Finance, Insurance, And Real Estate | Major Group 64: Insurance Agents, Brokers, And Service | Industry Group 641: Insurance Agents, Brokers, And Service
6411 Insurance Agents, Brokers, And Service: Agents primarily representing one or more insurance carriers, or brokers not representing any particular carriers primarily engaged as independent contractors in the sale or placement of insurance contracts with carriers, but not employees of the insurance carriers they represent. This industry also includes independent organizations concerned with insurance services.
- Fire Insurance Underwriters' Laboratories
- Fire loss appraisal
- Insurance adjusters
- Insurance advisory services
- Insurance agents
- Insurance brokers
- Insurance claim adjusters, not employed by insurance companies
- Insurance educational services
- Insurance information bureaus
- Insurance inspection and investigation services
- Insurance loss prevention services
- Insurance patrol services
- Insurance professional standards services
- Insurance reporting services
- Insurance research services
- Insurance services
- Life insurance agents
- Medical insurance claims, processing of: contract or fee basis
- Pension and retirement plan consultants
- Policy holders' consulting service
- Rate making organizations, insurance
Claims Adjuster Insurance - The Bottom Line
To learn more information about the kinds of claims adjuster insurance policies you'll need and what coverage limits you should have, consult with a reputable broker that is experienced in business insurance.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Professional Services Insurance
Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.
- Answering Service
- Armored Car
- Attorney Lawyer
- Background Music Services
- Business Consulting
- Chemical Engineers
- Civil Engineers
- Claims Adjuster
- Commercial Laundries
- Commodity Broker
- Corporate Wellness
- Court Reporter
- Credit Bureaus
- Debt Collection Agency
- Detective Agency
- Diaper Services
- Electrical Engineering
- Environmental Consultant
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Planner
- Financial Services
- Funeral Directors
- HR Consultant
- Inspection Bureaus
- Insurance Agents & Brokers Insurance
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Office Machine Repair & Maintenance
- Piano Tuners
- Project Management
- Safety Consultants
- Temporary Staffing
- Tax Preparer
- Title Abstractors
Let's face reality. People today are claims conscious, resulting in a significant share of malpractice lawsuits against professionals.
Liability resulting from the rendering of or the failure to render professional services is excluded in most liability coverage forms. This means that a policy covering a account's or lawyers' office will cover liability arising out of the maintenance or use of the premises, but specifically exclude liability arising out of the rendering of a professional service or the omission of such a service.
In addition to the professions in which actual physical or mental injury may be caused to clients, certain other professions are exposed to claims for malpractice.
Claims may be brought against lawyers, accountants, architects, and similar professional persons for errors or omissions in their professional capacity. Errors & Omissions insurance pays damages that might be awarded to a plaintiff alleging professional negligence.
Professional liability policies are made available to such risks, and these policies provide essentially the same protection as is afforded under the physicians, surgeons or dentists professional liability policy.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.