THE WARNOCK AGENCY INC
4528 McEver Road Suite C
Oakwood, GA 30566

Established 1999

MAIN WEBSITE:
www.warnockagency.com

PH: 866-546-4605
FAX: 678-450-7333
Claims Adjusters Errors & Omissions
Specified Professions Product for Claim Adjusters
The Warnock Agency Inc has been a supplier of claims adjuster professional liability and errors
& omissions coverage for independent adjusters since 1999. We represent an admitted market
carrier for most states with an A++ rating. Underwriting and quotes are usually returned within
48 hours of submission. We also offer policies that meet the stringent requirements of Citizens in
Florida!

Print and fax both the application and the supplement (there are two files to open)
CLAIMS ADJUSTER APPLICATION

CLAIMS ADJUSTER SUPPLEMENT

to 678-450-7333 or e-mail lamon@warnockagency.com

Did you know?

■   As an independent claims adjuster, you can be sued by the person or entity for which you
are adjusting the claim AS WELL as the insurance carrier for which you are providing the
adjusting services. Contrary to popular belief, the insurance carrier for which you are providing
services may NOT defend you in the event of a claim.
■   An increase in natural disasters means an increase in claims that will need adjusting. The
greater your caseload, the more likely you are to incur a professional liability claim.
■   Besides allegations of mishandling a claim, there is a very serious risk of bodily injury
arising out of your profession

Claim Examples
EXAMPLE: BCD Insurance, a writer of homeowners insurance, hires Bob as an independent
claims adjuster. Bob is entrusted with $5,000 in settlement authority. One day, Bob is called to a
house which has had its roof damaged by a hail storm. After inspecting the damaged roof, Bob
offers $15,000 to settle the claim. BCD sues Bob for exceeding his settlement authority.

EXAMPLE: Ralph is an independent claims adjuster hired by FGH Insurance, a writer of
personal auto insurance. Mike drives a very rare antique car. He is involved in an accident and
ends up hitting a utility pole, leaving the front end dented and fluid leaking from the radiator.
When Ralph inspects the car, he does not notice the damage to the radiator and offers $15,000
to settle the claim. When Mike gets the bill from the mechanic, he finds that the bill is much
more expensive than originally thought, since parts for the model of his car are extremely hard
to find. It will cost $30,000 to fix both the front end and the radiator. Mike is unaware that
Ralph is not an employee of FGH, so he sues FGH Insurance for $30,000 for underestimating the
cost to fix his car. FGH Insurance then turns around and sues Ralph for $30,000.

EXAMPLE: Firefighters are called to the scene of a massive four-alarm blaze and find Sam's
house on fire. They fight the fire for hours and seem to have it under control when it flares up
again. When they are finally able to put out the fire, the house is completely devastated. Sam
contacts his insurance company, and they send Todd to adjust the claim. When Sam gets the
estimate for the damages and discovers it only covers one fire, he sues his insurance agent, his
insurance company, and Todd. Sam believes that there were actually two fires, and therefore
there should be two applicable limits.Although Todd is eventually found not liable for the
damages to Sam, he still spends $20,000 to defend himself in the suit.

EXAMPLE: Steven adjusts a total loss of Tommy's car for XYZ Insurance, a writer of personal
auto insurance. Steven doesn't notice on the car's registration that ABC Auto is the lien holder
on the car. He recommends that XYZ pay $3,000 to cover the loss of the vehicle to Tommy, the
owner of the car. Once Tommy receives the check, he goes out and spends it on another car.
When XYZ learns they gave the money to Tommy in error, they write a $3,000 check to ABC for
the loss of the car. XYZ sues Steven for the $3,000 they paid to Tommy for failing to confirm
whether there was a lien holder on the car.

EXAMPLE: Ralph's Bakery is completely destroyed by a fire. He calls his GHI Insurance, which
dispatches Don to adjust the claim. Unfortunately, Don is ill and is not able to make it to the
scene for 10 days. When he is finally able to adjust the claim, it takes another 30 days for the
insurance company to process the payment. Ralph's Bakery loses $150,000 in lost income during
this time period. They sue GHI Insurance for the amount of income lost due to the delay in
processing the claim. GHI then sues Don for not adjusting the claim in a timely manner.
Claims Adjuster Professional Liability Insurance
Claims Adjuster Errors & Omissions Coverage