If an investigation reveals there is no coverage, what should an adjuster do?

When an investigation reveals that there is no coverage, it is appropriate for the adjuster to cease the investigation. This conclusion typically means that the reported claim falls outside the parameters of the insurance policy or does not meet the requirements for coverage. Continuing to investigate in this scenario would be unnecessary and could lead to additional costs and complications without any potential for recovery or claim payment.

Upon determining that there is no coverage, the focus should shift to communicating the findings to the insured rather than pursuing further investigatory steps. This action helps maintain transparency and builds trust between the adjuster and the policyholder. It is also essential for the adjuster to document the reasoning behind the determination of no coverage and inform the insured about their options moving forward, which might include seeking alternative remedies or addressing any misunderstandings about the coverage.