When you buy insurance, the claims process sounds so simple: You
suffer a loss, you file a claim, and you get your money. The
reality can often be more complicated, and it may be to your
advantage to hire someone familiar with the claims process to help
you. That someone is a public adjuster.
"A public adjuster is a representative for the policyholder
who interacts with the insurance company and assists the
policyholder in presenting his or her claim for insurance
benefits," explains Sherman Spitz, an attorney with Berger,
Kahn, Shafton, Moss, Figler, Simon & Gladstone in Irvine,
California, who specializes in representing insurance
companies.
Spitz says claims for business losses are often complex, and, in
many cases, entrepreneurs may find it worthwhile to delegate the
task of handling them. But it's important, he adds, to have the
right public adjuster--one who is experienced with commercial
claims, has handled claims similar to yours, and has a reputation
for honesty and integrity. Be wary of an adjuster who promises more
than you are entitled to: The insurance company will likely
scrutinize his work more closely, and an inflated claim could lead
to charges of insurance fraud.
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Public adjusters are listed in the Yellow Pages under
"adjusters," but your best bet for finding one is through
referrals. Spitz suggests asking your insurance company's
adjuster who they like to work with because a certain level of
trust will already have been established between the two companies.
Also ask friends or other business owners for recommendations. Find
out how long the adjuster has been in business, what his or her
insurance claims-handling background is (look for substantial
claims experience from both the insurance company side and the
policyholder side), and get references.
Fees are negotiable and are typically based on the amount
recovered. According to Spitz, they range from 8 to 15 percent,
with most being in the 10 to 12 percent range.
Finally, once you've hired an adjuster, don't totally
abdicate responsibility for the claim. Spitz recommends requiring
that the adjuster provide you with regular status reports and
copies of correspondence, and consult with you as significant
events occur.
Do you always need a public adjuster? No, says Spitz. If the
claim is simple and straightforward, you'll save money by
handling it yourself.
Contact Source
Berger, Kahn, Shafton, Moss, Figler, Simon &
Gladstone, (949) 474-1880, lawyers@bergerkahn.com (attn:
Sherman Spitz)