Working as a loss adjuster involves using expert skills to check out claims for insurance firms. Companies will often hire them to make professional judgements which must be as accurate as possible. However, the nature of their work means what they recommend will often be based on a rather raw judgement drawn from limited information. This means they could make mistakes which lead to an insurance company making large pay outs which lose them money. If a company later finds out the loss adjuster made the wrong recommendation due to an avoidable error, they may take legal action to repair their ‘financial injury’. This is why some professionals in the sector opt for a loss adjuster indemnity insurance policy.
The above is just one example of a possible scenario which could lead to a loss adjuster facing a compensation case. Because of the nature of their work, many professionals in the sector therefore put indemnity cover in place. This kind of cover is designed to provide protection should a policy holder face a legal claim after making a mistake or omission or committing negligence. It is designed to shield an individual or firm against the high legal costs which arise from mounting a legal defence.
Such a policy will pay related costs following a successful claim up to certain limits – and will even pay compensation which might be awarded to a claimant. Getting a policy is relatively straightforward and similar to getting other more traditional forms of cover. An individual or firm simply has to decide what level of cover they want – this can be anything from £25,000 to £2 million or more, and also decide on an excess.
A policy will also often cover things such as accusations that the firm or individual has defamed someone through libel or slander. A loss adjuster will often be entrusted with important documents or digital data – recordings from a security camera system, for example. If such information were to be lost or damaged, the lost adjuster may again face a claim, which will normally be covered by an indemnity policy. Breach of copyright and breach of confidence will also normally be part of the cover.
Loss adjuster indemnity insurance is therefore seen as a crucial piece of protection by many firms and freelancers operating in the sector – some insurers may even refuse to deal with someone who does not have it in place.