Are late fees or collection costs allowed for Public Adjusters?

Public Adjusters operate under strict regulatory guidelines intended to protect consumers and ensure ethical practices within the industry. The prohibition of late fees or collection costs is rooted in the intent to prevent any undue financial burden on policyholders, who are often navigating difficult situations related to insurance claims.

Allowing late fees or collection costs could lead to conflicts of interest, where the focus may shift from advocating for a fair settlement to pursuing payment. The aim is to ensure that Public Adjusters prioritize their clients' needs without the added pressure of financial penalties that could complicate their relationship with the policyholders. Therefore, the blanket prohibition of such fees is meant to maintain integrity in the process and uphold consumer protection standards in public adjusting practices.