Which type of malpractice occurs if an adjuster fails to conduct a thorough investigation?

The type of malpractice that occurs when an adjuster fails to conduct a thorough investigation is known as negligent claims handling. This refers to the failure to perform one's duties with the expected level of care and diligence, leading to inadequate assessments of claims. In the context of insurance adjusting, this negligence can result in significant consequences for all parties involved, as it can lead to improper claim settlements, unrecognized liabilities, or unjustified denials of claims.

When an adjuster neglects the essential investigation process, they may overlook critical evidence or fail to gather necessary documentation, which ultimately impacts the integrity of the claims process. Therefore, negligent claims handling reflects a failure in performing professional responsibilities adequately, resulting in a potential breach of duty to the policyholder or claimant.

This term captures the essence of responsibility in the role of an adjuster, highlighting the importance of thorough investigations as part of the claims handling process.