Insurance Loss Adjusters

Loss Adjusters vs Loss Assessors

With so much to take note of when making an insurance claim, the role of Loss Adjusters and Loss Assessors are easy to get confused, and it’s important to know the difference between them. They are similar in that they both work on your claim, but crucially the Loss Adjuster is appointed by the insurance company, and the Loss Assessor works for you, the policyholder.

Insurance Claim Solutions are Loss Assessors, for more information on what we do, please click here.

Loss Adjusters act on behalf of an insurance company to investigate large or complex claims. They are regulated by the Chartered Institute of Loss Adjusters (CILA) and are bound by their own charter. It is important to understand that whilst it states they are independent, their fee is paid for by the insurance company.

Normally the policy does not provide for the policyholder to appoint their own insurance expert and they will have to do this at their own expense.

What does a Loss Adjuster do?

Typically, a Loss Adjuster will attend the site soon after the claim.

It will be their role to investigate:

  • the circumstances of the claim
  • the extent of loss
  • examine policy cover

They will report to the insurance company and aim to advise the insurers of the potential claim cost allowing insurers to set aside money accordingly.

Many Loss Adjusters will have a delegated authority with insurance companies, essentially allowing them to act as if they were the insurer. They can agree claims and issue payments.

Insurance Experts

On other occasions, perhaps where the value is higher, or if there is an underwriting issue, Loss Adjusters will work on a non-delegated basis, purely providing recommendations without any binding authority.

The Loss Adjuster holds a clear advantage over the policyholder in that they are insurance experts. They do not advise the policyholder on how to claim and they will collect all of the information from the policyholder before confirming cover.

This is an unfair advantage, and often causes the policyholder to misunderstand the role of the Loss Adjuster. This is why it is recommended that you appoint an independent Loss Assessor to work on your behalf and carry out negotiations with the insurance company to agree the best settlement possible.

Do you need help with your insurance claim?

Find out more about our Loss Assessor service here.