Exploding the Myth: "Adjuster Bonuses are a Dangerous Bad Faith Practice"
Believe it or not, many members of the bad-faith bar and the claim experts that they retain vehemently argue that adjusters should be exempt from receiving bonuses, because such bonuses service financial incentives to underpay claims. In depositions of claim handlers and corporate representatives, they are keenly interested in the workings of adjuster pay, particularly bonuses and incentives/contingent compensation.
This episode of the Claims Coach looks at the myth that bonuses for adjusters are inherently bad for an invitation to institutional bad-faith. Structured intelligently, bonuses further the corporate goals of customer service, retention, growth and profitability. In addition, the aims of talent recruitment and retention are furthered through such sensible arrangements.
It would be grossly unfair to thousands of claims people to single them out as being undeserving of bonus compensation if the company profits from their hard work.