Property risks are constantly evolving, and insurance programs often evolve with them. As shared and layered structures bring multiple insurers into a program, effective claims planning becomes an increasingly important part of program design. A well-designed property insurance program therefore needs to do more than provide competitive price and capacity. It also needs to respond effectively when a loss occurs.
For companies with shared and layered programs, one seemingly small decision made before a loss can have an outsized effect on the claims process: selecting and naming an independent adjuster (IA).
Consider a catastrophic loss affecting a company with no IA already identified. At the moment the organization should be focused on protecting property and restoring operations, it may instead have to identify an adjuster and secure agreement from multiple insurers. That can consume valuable time, complicate an already difficult situation, and potentially slow the claims process to a halt.
Moving from a single-insurer commercial property program to a shared and layered structure adds to this challenge. Instead of one insurer reviewing and responding to a loss, a panel of insurers is involved, each with its own processes, priorities, and interpretations. Thoughtful selection of an IA before a loss occurs can bring structure, consistency, and efficiency to the claims process.
A neutral fact-finder
An IA is a licensed third-party claims professional retained and paid by insurers, not a representative of the insured. What distinguishes an IA from other adjusters is who retains them and the role they plan. A staff adjuster is employed directly by an insurer, while an IA is contracted to evaluate claims independently. A public adjuster, by contrast, is retained by the insured and generally paid based on the claim recovery.
The IA’s role is to investigate the loss, assess damage, evaluate causation, review relevant policy terms and prepare findings for insurers. In a commercial property claim, that work may include on-site inspections, documentation of damage, analysis of mitigation and salvage efforts, review of repair or replacement costs, extra expense and business interruption calculations, and reporting to all insurers participating in the program.
The distinction matters: An IA does not settle a claim or make final coverage decisions. Instead, an IA provides an objective factual record and recommendations that insurers can use when making coverage and valuation decisions.
A bridge between parties
The right IA can act as a bridge between the insured and the insurer panel, providing a common factual basis for participating insurers. This can reduce duplicative work, create clearer communication paths, and bring specialized claims expertise to complex property losses.
Although insurers typically retain an IA, the insured and broker may be able to play an active role in nominating or selecting a preferred adjuster, particularly when the IA is named in the policy at inception.
There are several ways this can happen. A broker may coordinate a formal RFP process, inviting qualified adjusters to share their experience, credentials, and approach to complex commercial property claims. Alternatively, the insured may nominate an IA based on prior experience, industry reputation, or familiarity with the organization’s operations. In either case, the final selection is typically made in consultation with, and subject to approval by, participating insurers.
Early alignment can be particularly valuable when a major loss occurs. An IA that already understands an insured’s business, property profile, industry nuances, and geographic footprint can begin working without the insured and insurers first having to establish relationships during a crisis. That familiarity can be especially useful when a claim involves complex operations, ambiguous policy language, or time-sensitive decisions.
Specific roles and responsibilities
A shared and layered claim works best when each party understands its role.
The insured reports the loss, provides access to the affected property and supplies documentation needed to support the claim. Depending on the complexity of the loss, the insured may also retain forensic accountants or other consultants to support the claim submission.
The broker advocates for the insured, facilitates communication among the parties and helps address issues or disputes that arise during the claims process.
The IA investigates the loss, evaluates the facts, reports findings to all insurers on the panel, and helps track payments so all parties understand what has been paid and what remains outstanding.
The insurer panel shares financial responsibility for the claim and relies on the IA’s report when making coverage and valuation decisions. The insurers retain ultimate authority to settle the claim.
This structure helps reduce the risk that each insurer will pursue a separate information-gathering process. It also gives the insured and broker a clearer path for communication and follow-up.
When coverage questions get complicated
Having an IA in place does not eliminate coverage disputes or ambiguities. Questions may concern policy wording, while disagreements may also involve cause of loss, extent of damage, or documentation.
In those situations, an IA plays an important advisory role. An IA may prepare a detailed report on the loss and relevant policy terms, consult with forensic accountants or engineers in complex claims, and help facilitate dialogue among insurers.
The broker’s role is especially important when disagreements emerge. If the insured disputes the IA’s findings or insurers take different positions, the broker can help navigate the process, advocate for the insured and work to keep the claim moving toward resolution.
A better claims process starts before the claim
For an insured, naming an IA before a loss can reduce uncertainty at the moment it matters most. The organization knows who will be involved, and an IA familiar with its operations, property values, documentation practices, and recurring issues can get up to speed more quickly.
That familiarity can help an IA understand the business impact of a loss and identify what’s needed to move a claim forward. And in a multi-insurer program, having a single adjuster coordinating among insurers can also help minimize delays, miscommunication, and duplicative requests.
Brokers and property claims advocates can help insureds evaluate potential adjusters, consider their experience with similar risks and losses, and work with participating insurers to align on the selection before a claim occurs.
The quality of a property insurance program is ultimately tested when a loss occurs. In a shared and layered structure, thinking through claims management is advance is crucial to program design. Selecting the right IA, naming that adjuster in the policy, and aligning expectations with participating insurers before a loss can remove a key source of uncertainty when time matters most.
