What can lead to a conflict of interest for an independent adjuster?

Accepting payments from both the insurer and the insured can create a conflict of interest for an independent adjuster because it puts the adjuster's impartiality into question. An independent adjuster is expected to act as a neutral party in the claims process, ensuring that the evaluation is fair and unbiased. If an adjuster receives compensation from both sides, it may lead to a situation where their judgment could be influenced by the competing interests of the parties involved. This dual compensation can undermine the trust that both insurers and insureds place in the adjuster's ability to provide a fair assessment. Maintaining an independent stance is crucial in ensuring that all stakeholders have confidence in the adjustment process.

In contrast, working exclusively for one insurance company does not inherently create a conflict of interest, as long as the adjuster is still providing objective assessments. Not disclosing findings to the insurer is more about transparency and ethics rather than a direct conflict of interest, and diligently following claims procedures typically helps uphold standards and does not contribute to conflicts.