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Pandemic pressure highlights the need for loss adjusters professional indemnity insurance

The impact of the COVID-19 pandemic has made this a challenging time for loss adjusters, with remote working requiring an innovative use of technology and insurers needing to take extra care when giving instructions.

Consequently, loss adjusters will need to ensure they have been even more thorough in their investigation into claims. Virtual site visits can deliver savings, in terms of time spent on the claim.  Additionally, new technology has helped with an ability to upload photographs of a claim, plus recorded drone evidence is increasingly being used to support and explain claims. However, identifying potential fraudulent or inflated claims may be more difficult without a face to face meeting.

In these unprecedented times, loss adjusters could find themselves under pressure if they have accepted cover that is triggered despite a lack of physical evidence or if they have not applied certain exclusions. Especially with the recent High Court ruling in favour of the FCA in the COVID-19 Business Interruption insurance test case highlighting how the wording of any business interruption clause will need careful analysis based on the specific facts of the claim.

Economic hardship can trigger an increase in claims and an analysis of fire claim submissions during the first UK lockdown across domestic and commercial properties, including outbuildings and outdoor areas by the claims data specialist Crawford, revealed a 40% increase in fire claims. Fire is one of the most expensive property insurance claims, with £1.3 billion being paid out to customers during 2018, according to the Association of British Insurers.

The loss adjusters professional indemnity insurance policy protects the Loss Adjuster firm against claims made against it in respect of their legal liability for losses arising from a breach of professional duty.

W Denis Insurance Brokers has a dedicated professional indemnity team, based in London, that can offer specialist technical advice. To discuss this further with an expert at W Denis, please make arrangements via daniel.moss@wdenis.co.uk or call 0113 243 9812.

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