What is a loss adjuster?

The role of a loss adjuster is to provide support and guidance in the event of an insurance claim. Loss adjusters are typically appointed by insurance companies but can also be appointed by policyholders.

To do this there is a need for expert knowledge and skills, along with a full understanding of the insurance cover and the circumstances of the claim.

What will the loss adjuster do?

The loss adjuster will provide expert knowledge and skills, along with a full understanding of the insurance cover and the circumstances of the claim. In brief, the loss adjuster's role will be to:

1) Verify whether the policy covers the loss or damage

2) Verify the amount (if any) the policy should pay out

The loss adjuster might possess complete authority to settle the claim on behalf of the insurers. This is referred to as delegated authority. Alternatively, the loss adjuster’s role could be limited to offering guidance and recommendations to your insurers.

In any circumstance and regardless of the outcome, you have the right to receive a reasonable explanation of the loss adjuster’s perspective. It can help if you have your insurance policy wording available, together with the latest policy schedule. You can ask the loss adjuster to explain your policy and how this may influence the outcome of your claim.

The loss adjuster will usually send a report to the insurance company and policyholders often ask whether they are entitled to a copy of the report. Such reports are not usually made available. However, you may ask for guidance as to the view of the loss adjuster.

Some claims are straightforward, while others, for various reasons, are complex. The loss adjuster will ask for a wide variety of information, and you are entitled to understand why the information is required.

If the loss adjuster is acting on behalf of an insurer there will usually be strict service level agreements to help, ensure that your claim is dealt with speedily and you are treated fairly. Loss adjusters usually try to exceed the levels of service that are required.

Can I appoint a loss adjuster to work on my behalf?

Yes. If you would like help in making an insurance claim, you may choose to appoint a loss adjuster to work on your behalf.

A loss adjuster will guide and support you through the claims process and provide hands-on assistance to get your claim resolved. This may include co-ordinating emergency activity, preparing the details of your claim (including supporting documentation), liaising with the different parties involved in your claim, and negotiating the method and amount of settlement.

Who pays for the loss adjuster?

If your insurance company has appointed a loss adjuster to handle your claim, your insurance company will pay the fee of that loss adjuster.

If you have appointed a loss adjuster to work on your behalf, you will pay the fee of that loss adjuster. The fee charged by a loss adjuster working on behalf of a policyholder is normally an hourly rate or a percentage of the settlement figure, depending on the size and type of claim.

You can purchase insurance to cover the cost of loss adjuster fees in the event of a claim and so you may wish to check your insurance policies and/or speak to your insurance broker to find out whether you have purchased this type of insurance.

Why should I appoint a Chartered Loss Adjuster rather than a Loss Assessor?

Chartered Loss Adjusters are experienced claims professionals who have achieved the highest qualification in claims. They are members of the CILA and so expected to behave in accordance with the CILA Guide to Professional Conduct.