Working with Insurance Adjusters

by Katie Petersen | May 2, 2022 | Risk Management | 0 comments

Working with Insurance Adjusters

Written by Tom Dunn

You sustain a loss to your property, and report it to the insurance company. Shortly after, you are notified who the adjuster is that will be handling your claim. For most people, the fear of the unknown now sets in. What will it be like working with this person to resolve the claim and get your business back to normal? Will I be treated fairly and receive just compensation or will they find ways to deny coverage or try to pay as little as possible?

I know first-hand of this experience, having worked for a national TPA adjusting firm as well as as a staff adjuster for a self-insured risk pool that insured municipalities and school districts. From my perspective as an adjuster, I always tried to put the person who sustained the loss at ease during the first interaction and assure them they would be treated fairly.

It is probably a normal reaction to have some anxiety, but there is no reason for this relationship to turn out poorly. If you go into the relationship with the mindset that this person can be my advocate instead of adversary and follow some simple steps, you can walk away from the experience feeling like you have been made whole.

This article will focus on property losses, but there are many different types of claims that adjusters handle. The same basic principles for working with an adjuster apply for any type of claim. It probably helps to know what the role of the adjuster is to help know how the process will work. Here is a summary of the process an adjuster may take:

Determine the cause of loss
Determine if there is coverage available under the applicable policies
Determine the extent of property damage
Determine if the damage should be repaired, replaced and what to do with the damaged property
Determine the amount of payment

Seems straightforward, but here are some steps to make the process smoother:

Report the claim to the insurance company promptly. Your agent can help with reporting a claim.
Know your policy. You don’t have to be an expert or know all of the ins and outs of the policy, but you definitely should become familiar with what is generally covered and your obligations. Pay attention to the “Duties after a Loss and Proof of Loss Requirements”.
Ask questions of your adjuster. A good adjuster will explain your duties and obligations and bring up any coverage concerns, but don’t be afraid to ask for explanations if you have questions. As with all strong relationships, communication is the key. Be polite and responsive in all interactions, but it is ok to be firm.
Take steps to mitigate any further damage while the claim is being investigated. This is required in the policy language. See #2
Collect documentation of your damage. Take a complete inventory of damaged and undamaged property (pre-loss inventory is even better). Take photos and videos of everything that was damaged as soon as possible after the loss and identify what it is showing.
Insurance companies may recommend a contractor or you may be able to choose your own to complete repair work. Make sure they are present when the adjuster comes to inspect the damaged property and have experience working with insurance adjusters.
Keep a claims journal documenting your interactions with the insurance company adjuster (dates, times, subject matter). The adjuster is doing the same with you and this can help resolve any discrepancies.
Remember the appraisal clause in the policy language. Hopefully, if you have followed steps 1-7, this won’t be necessary, but if you don’t feel you are receiving just compensation for your loss, you have the right to invoke the appraisal clause and seek a non-biased opinion of a third party. See #2

Dealing with the aftermath of a claim can be a stressful situation. Being prepared, detailed, proactive and advocating for yourself goes a long way in obtaining a successful resolution. A good insurance agent knows when and how to become involved, without being a hindrance to the claims process. Utilize that relationship, when needed.

For additional help in working with insurance adjusters, contact a member of the ArboRisk Insurance team! ArboRisk also can work one-on-one with you to create an extraordinary business through our Thrive Risk Management New Heights package!

Lastly, check out this article on maximizing compensation from vehicle accidents in October 2021 TCI Magazine.

Why Auto Insurance Rates are Increasing

by Katie Petersen | May 2, 2022 | Risk Management | 0 comments

Why Auto Insurance Rates are Increasing

Written by Tom Dunn

Commercial auto rates have been increasing at an alarming rate across all industries and the tree care industry is no exception.

This article is meant to shed some light on the causes behind the rate spike and point you to a few resources to help you minimize your cost.

Distracted Driving and Accidents

As with any insurance coverage the rate that you pay is directly connected to the likelihood of a claim happening. Therefore, when there are more accidents, the cost of the insurance goes up.

For many tree care owners, their truck is also their mobile office and just like working in a traditional office, there are plenty of distractions that can take your focus away from what you should be doing. The only difference is in a vehicle, the consequences of lack of focus are always more severe, leading to property damage, injuries and even death.

Distracted driving is the largest cause of motor vehicle accidents and comes in many forms. Some of the most common are:

Cell phone use: Talking or texting. Even the hands free options can distract.
Multi-tasking like eating or drinking while driving
Adjusting controls in the vehicle
Checking GPS navigation system
Talking with another passenger
Looking at something outside car

Inflation

Technology has led to many advances in vehicles that are supposed to make them safer, however that technology comes at an increased cost for consumers when it comes time to repair a damaged vehicle, especially delicate electronics.

Same principle at work with individuals who are injured in a motor vehicle accident. Hospital services have gone up dramatically in cost.

More Drivers

Yes, there were less drivers on the road during the peak of Covid, however, the number of licensed drivers has grown overall to over 230 million across the country.

Inexperienced Drivers

Unfortunately, there are enough experienced drivers with the skills and expertise to drive commercial vehicles to replace the drivers who are retiring. In general, inexperienced drivers have more accidents.

Infrastructure

Old, crumbling roads and bridges increase the wear and tear on vehicles, making accidents more likely. Roads not designed to handle the volume of traffic we see today which leads to more congestion and accidents.

Supply Chain Disruptions

Covid did lead to a decrease in the need for vehicle parts for a short period, however as driving has returned to more normal levels, there has been an increased demand. Sadly, the supply of available parts has not caught up.

Extreme Weather

It doesn’t have to be considered an extreme weather event to lead to an accident, and you don’t have to be a meteorologist to see the increase in extreme weather events. Company vehicles can be damaged just sitting in a parking lot, however, Tree Care companies are often on the road as first responders in extreme weather events thereby increasing their chance of being involved in an accident during a storm.

Huge court verdicts

Also known as “Nuclear Judgements,” these are defined as a verdict in favor of a plaintiff with a damage award over $10M, but can be used for any verdict larger than anyone expected.

One of the insurers that ArboRisk works with recently had a $6M verdict handed down for a motor vehicle accident involving a tree care company. An interesting look behind the reasons for nuclear verdicts shows that how a company addresses safety definitely matters:

Juries have shown that if a company overlooks workplace safety, doesn’t provide adequate safety training for employees and has a history of repeat violations, they will be punished for their lack of training oversight.
Failure to utilize available technology (driver monitoring systems, forward collision systems, back-up cameras, voice control-Bluetooth) can also lead to punishment from a jury.

While it may seem like there is no hope for your business auto rates, know that you are not helpless in controlling your own rates. Companies that take driver and fleet safety seriously position themselves to receive the lowest rates possible. We actually recently wrote an article to give you four ways you can lower your rates.

Additionally, every ArboRisk client has access to our extensive driver and fleet management resources on our Thrive website. Not an ArboRisk client? No problem! Enroll in our Thrive Safety Package to get one-on-one help lowering your risk of an auto accident within your company.