What is Adjusters (Claim Adjusters) Errors and Omissions?
Adjusters Errors and Omissions (E&O) insurance protects individual claims adjusters and adjusting firms from claims of negligence, mistakes, or failure to perform professional duties. This coverage helps cover legal fees and damages resulting from lawsuits or allegations related to the adjuster's professional services. It applies to both public adjusters—who typically represent policyholders—and independent or staff adjusters who work for insurance companies.
Who Needs It
This type of insurance is essential for:
- Independent claims adjusters working on behalf of insurance carriers
- Public adjusters representing policyholders in claims disputes
- Adjusting firms employing multiple licensed professionals
Even experienced professionals can face claims of oversight or miscommunication. E&O insurance helps protect your business and reputation if a client claims you caused a financial loss through your services.
What It Typically Covers
An Adjusters E&O policy generally covers:
- Alleged errors or omissions in claims handling
- Negligence or breach of professional duty
- Defense costs, even if the claim is groundless
- Settlements or judgments (up to policy limits)
This protection applies to actions by the named insured or their employees while acting in a professional capacity as an adjuster.
Common Exclusions and Limitations
While E&O insurance offers broad protection, it does not cover:
- Intentional wrongdoing or criminal acts
- Bodily injury or property damage (covered by general liability)
- Claims arising from services not listed in the policy
- Prior knowledge of potential claims before coverage started
Always review the policy details to understand what is and isn’t covered.
Factors That Influence Cost
The cost of E&O insurance for adjusters depends on several factors, including:
- Type of adjuster (public vs. independent)
- Years of experience and claims history
- Annual revenue and number of employees
- Coverage limits and deductible selected
Proof of Insurance & Compliance
Many states require public adjusters to carry E&O insurance as part of licensing. Even when not mandated, having proof of insurance can increase trust with clients and help meet contract requirements. Be sure to check your state’s specific regulations for compliance.
How to Get a Quote
Protect your claims adjusting business with the right E&O coverage. Get a quote today and find a policy that fits your needs.
Frequently Asked Questions
What does Adjusters E&O insurance protect against?
It covers claims of professional negligence, errors, or omissions made during claims adjusting services.
Is E&O insurance required for public adjusters?
Many states require public adjusters to carry E&O coverage as part of licensing, but requirements vary.
Does this policy cover bodily injury or property damage?
No, E&O insurance focuses on financial losses due to professional mistakes. You'll need general liability for physical damages.
Can I get coverage if I’m a new adjuster with no experience?
Yes, new adjusters can typically obtain E&O insurance, though premiums may vary based on risk factors.
Are defense costs included in E&O coverage?
Yes, most policies include legal defense costs, even if a claim is ultimately found to be baseless.
Still have questions? Talk to a local insurance expert.