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Found a great article by Lawrence Beemer over at Claims Management Magazine. Beemer explains 3 myths every Claims Director should know and goes into detail about hiring construction adjusters.

3 Myths Every Claims Director Should Know

Construction defect claims can present many landmines in terms of determining fault and coverage. The severity, complexity, and volume of work from construction defect claims continue to increase, and claims managers need to look to dynamic people and ideas to handle the intricacies of these claims.

Although not meant to be an all-inclusive guide to these complicated claims, this article presents some of the common myths and misconceptions that claims leaders should review with their adjusters and supervisors to ensure proper handling.

Myth No. 1

A strong technical background is a prerequisite to hiring for a construction defect adjuster desk.

Myth No. 2

Excess claims do not substantially affect the loss ratio in a construction defect department.

Myth No. 3

It is best to have adjusters handle only additional insured claims.

A most interesting article, especially “Myth 3,” is the myth that an AI adjuster is nothing other than a clerk buried in the paper who pays bills.

As the article points out, an effective AI adjuster should be making sure the developer and the developer’s counsel are jointly doing everything they can to make sure the matter is litigated efficiently. In addition, the AI adjuster should be able to audit bills.

So legal knowledge on the part of the AI claims handler would benefit their carrier.

Third-party Cost Administrator

As a third-party cost administrator specializing in construction defect claims, JDi Data bills carriers for shares of AI defense costs incurred by the developer under AI endorsements.

When experts expect speedy payment for their services, what they’re hoping is that the claims adjuster is a paper pusher who does nothing but cut checks without reviewing invoices closely — or at all.

When experts aren’t paid so timely, hopefully, the reason is that the AI adjuster is the kind Mr. Beemer describes in the article: an astute bill reviewer.

Feel free to read the full article here.