The $19,000 Lesson and the Birth of a Calling

Early in my career, when I owned and operated an insurance agency, I learned a hard truth about the industry. It was a lesson that cost me dearly, but in hindsight, it was a pivotal moment—one that eventually led me to the work of a public adjuster.

My staff and I had worked tirelessly all year. We put in long hours, invested heavily in marketing, and successfully grew our book of business. We were on track to earn a significant year-end bonus, a tangible reward for our hard work and success. We had also spent a considerable amount of time and effort advocating for our clients, helping them get their claims paid fairly. It felt like a win-win: we were achieving our business goals while staying true to our commitment to serve our clients.

As the end of the year approached, I watched our agency's "loss ratio" inch closer and closer to a threshold. The loss ratio is a metric that compares the amount of money paid out in claims to the amount of money collected in premiums. I knew that breaching a certain number could affect our bonus, and I watched with bated breath, hoping we would not cross the line.

But on the night before New Year's Eve, a final, small claim was approved. That single event was all it took. It pushed us over the barrier by just 2 hundredths of a percent. (0.02%) The bonus we had worked so hard for was gone. The investment we had made throughout the year vanished, and we were left with a $19,000 loss. The pain of that financial hit was significant, but the deeper sting was the realization of why it happened. In essence, we were penalized for helping our clients get their claims paid. The system was designed to create a conflict of interest: a bonus for sales could be stripped away by successfully advocating for a client's claim.

That lesson was profound. The system had incentivized me not to do what was right for the people who trusted me. It asked me to choose between my clients' financial well-being and my own. This was a moral and ethical dilemma I could not abide. I never forgot that day. I never forgot the feeling of being punished for doing the right thing.

For years, I wished there were a way to be more aligned with my clients. They were, ultimately, my true employers. I owned a business, and each client is what made that business possible. While the insurance company played an important role, I was not their employee. I worked for my clients, and my fiduciary responsibility was to them and also to the company. This was truly a house divided.

It wasn't until just a few years ago that I discovered public adjusting. Public adjusters are unlike agents, staff adjusters, and even independent adjusters. All of them share a divided interest. But public adjusters do not. They are 100% employed by the client and have no other interest besides the client's interest—by law. What a joy!

Now, as a public adjuster, I am on the other side of the equation, and the difference is not only stark—it is liberating. My interests and my clients' interests are now inseparably fixed. I only get paid if they get paid. My success is a direct result of their success. There is no longer a hidden penalty for doing what is right. There is only a clear, moral, and ethical path forward.

I am incredibly thankful for this discovery and for the ability to be on the "client-side" of the equation. To serve my clients with an undivided heart and a singular purpose. My mission is to ensure people are cared for and claims are recovered. I am grateful for the journey that taught me that lesson so well.

it was a long journey to here