An insurance adjuster is the bridge between you and your insurance policy. Adjusting is either done by an independent adjuster or an in-house adjuster who works directly for the insurance company. In either case, for most people an insurance adjuster will be the person responsible for explaining what your insurance policy is and what it covers.
Insurance adjusters are obligated to act with a certain standard of professionalism, and with certain interests in mind. In general, an insurance adjuster is obligated to:
- Adhere to the policy terms and coverage afforded. This means they have to explain the limits of your policy, what is covered, and what is governed by any exclusions.
- Act impartially between the insurance company and the insured to ensure the insured receives exactly what they are afforded under their policy.
- Strive for a fair settlement. If you need to make a claim under your insurance policy, your adjuster is often the person who negotiates that claim. They have an obligation to act fairly in those circumstances.
- Comply with all regulatory requirements. There are various laws, regulations, bylaws, and other requirements that an adjuster must comply with.
The benefits to these obligations are many. It provides someone looking for insurance with confidence that the adjuster is acting in their best interests, and the system is fair. It ensures that adjusters are competent and provide accurate advice and guidance – and that if an error does occur, there are remedies.
If these requirements did not exist, insureds would be left with uncertainty. They would not have the safety of a proper explanation about coverages and limits.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
