Why Independent Adjusters Still Need E&O and General Liability Insurance

There’s a persistent myth in the independent adjusting world: “If I do my job right, I don’t need insurance coverage.” On the surface, it sounds reasonable. After all, if you’re thorough, ethical, and follow best practices, what could go wrong?

The reality? A lot.

Even If You’re Right, You Can Be Sued

Lawsuits don’t only happen when someone makes a mistake. Independent adjusters can be pulled into legal disputes simply because they were involved in a claim—even if they did everything correctly. You could be named in a lawsuit alongside the carrier, the contractor, the insured, and others simply because your name appears in the file.

Defending yourself costs time, energy, and money—regardless of whether the claim has any merit. E&O (Errors and Omissions) and General Liability (GL) coverage protect you from the fallout of being caught in that legal crossfire.

What E&O and GL Coverage Do

• E&O Insurance protects you from claims of negligence, errors, or omissions in your professional services—even if you haven’t done anything wrong. It covers legal defense costs and settlements or judgments.

• General Liability Insurance covers bodily injury, property damage, and personal injury claims that can arise in the course of your work—especially important if you’re visiting job sites or meeting with clients in person.

Real-World Risks You Can’t Ignore

• Misunderstandings: A homeowner disagrees with the scope and pricing used to complete your estimate and files a complaint, believing you undervalued their loss. You may still have to defend yourself even if you were correct.

• Shared Blame: You’re part of a larger claim involving multiple parties. Even if the core issue had nothing to do with your work, plaintiffs often name everyone remotely involved, just in case.

• Frivolous Lawsuits: These are more common than you’d think. A dissatisfied claimant or policyholder may sue just to force a settlement. If you’re uninsured, you’re footing your own legal bill.

You’re Not Just Protecting Yourself—You’re Protecting Your Business

Having E&O and GL coverage isn’t just about guarding your finances—it also boosts your credibility. Many clients and carriers won’t work with independent adjusters unless they’re properly insured. Coverage proves that you’re a professional who understands the risks and takes your role seriously.

Bottom Line: Doing Your Job Well Doesn’t Make You Lawsuit-Proof

Being diligent, accurate, and ethical is essential. But it doesn’t make you invisible to legal risk. Insurance isn’t about admitting fault, it’s about being smart enough to recognize that things can go wrong even when you’re right.

So no, doing your job right doesn’t mean you don’t need coverage. It means you deserve protection for the hard work you put in.

Protect Yourself with Coverage Built for Adjusters

At CPLIC, we specialize in E&O and GL coverage designed specifically for independent adjusters. Our policies are tailored to the unique risks of your profession, with the backing of a risk retention group that understands your world.

Don’t wait until a lawsuit catches you off guard— complete an application for coverage today