Each year since founding ClaimSmentor, I have turned to CPLIC for advice to share with our members on Errors and Omissions coverage for independent adjusters. We consider ourselves very fortunate to have members of this firm participate on our site. This year is especially important due to the added complications we may be facing this hurricane season with the oil in the gulf coast. I cannot thank them enough for their support providing this information for our members and all of you in the independent adjusting community. Their specialty is dealing only with Errors and Omissions (known as E & O ) coverage for the claims industry.
The following statement to their members is reprinted with permission from the Claim Professionals Liability Insurance Co., a Risk Retention Group created by independent adjusters for the risk management of independent adjusting companies. See WWW.CPLIC.NET for more details:
Please view their Q & A they did for us in 2009 here. Most importantly note the recommendation that independent adjusters have their own E & O policy for their own protection:
Here is also a link to our first guest in August 2008 blog post by Dale Moore and Michael Hale of CPLIC with additional FAQ:
During my 50 Hour Fundamentals of Claims class, we cover Error and Omission Coverage with new adjusters. I am constantly amazed at their answers to questions on adjusters E & O coverage. Most state that they would rely on the coverage of an adjusting firm to protect them. When I question them further, it is interesting to see that I have never had one adjuster be able to tell me who the adjusting firm’s E & O policy is with, what the policy number is, how to contact the E & O carrier, what the E & O policy covers them for, if the E & O policy provides for defense costs for them if they are named individually in a lawsuit. In other words, they are working without even knowing about their coverage.
In recent years, many carriers, especially state run insurers like Texas Windpool and Citizens Property of Insurance in their RFP 08-0016 had terms stating they did not protect adjusting firms or independent adjusters so they were basically out on their own as far as providing an Answer to a Complaint (lawsuit) which is a costly proposition. I especially disagree with this position as the majority of claims litigation issues post hurricanes Katrina and Ike involved disputes insurance consumers had due to insurance company coverage decisions on wind/ water issues, wind debris to shingle issues, and other coverage or carrier guidelines an independent adjuster is required to follow. It is long past due that insurers, the government, and now BP and the Ken Feinburg group administering the BP Escrow fund grant independent adjusting firms and independent adjusters a fair and meaningful defense and indemnity agreement.
This guest blog is a great example of what ClaimSmentor is all about. It is not about what I think as a former staff adjuster and claims manager nor about my experience as a participant in the independent claims industry. It is all about bringing together a professional group of reputable resources to provide proper advice and information to the independent claims adjusting community who have a most difficult time gathering current industry information applicable to claims assignments and catastrophe operations except when they are out on assignment.
I urge anyone who does not have their own E & O policy to run not walk to CPLIC to address your questions and check on your own E & O coverage.
Thanks again from ClaimSmentor to CPLIC for allowing us permission to share their 2010 Urgent message with our members.