Independent adjusters
the inside edition and secrets of how we work
An Independent adjuster and public adjuster are not the same. If you're involved in a claim and are contacted by either type of adjuster you should be aware of the differences, associated costs and your rights. We'll explain how each adjuster's overall position works, how they are hired / paid and what their value is to both you and the insurance carrier involved. Click here for information about the claim process.
Independent adjusters (I/A's for short) are hired by insurance companies (carriers), self-insureds or bonded entities (trucking companies, rental car companies, etc.) and cannot be employed for the general public in any capacity related to insurance or insurance claims. It should be noted they are respectfully neutral in their approach. Independents are often hired by a claim representative (a salaried employee of the carrier or self-insured entity) on a per-claim basis; however they often work privately for other parties such as attorney's as general investigators. One purpose of having an I/A is to collect information pertinent to the facts in a dis-interested and impartial fashion, to make a record of those facts and more recently to be a good liaison between the carrier, their insured and other parties involved. Often we are asked to determine the cause of loss and origin. Another is to prevent having to use legal counsel as cost to hire them The information we collect may include (but is not limited to) documents such as: police reports, estimates of damage, written statements, recorded statements, photographs, diagrams, medical records and any other documentation related to the claim. Adjusters generally do not speak on behalf of a carrier (or alike) unless they have reviewed the situation with the claim rep and received permission to do so.
I/A's are often hired on a per-claim basis under independent contractor status and can work solely or for an adjusting company. They are rarely paid a salary (although they can be retained) making year round employment often difficult as work can often be weather related, thus some I/A's travel to find employment during storm season. Adjusting companies (firms) usually take a percentage (10-50%) of the total bill as a finders fee/office expense. The I/A or company is usually hired without formal agreement other than acceptance of an assignment (delivered via fax or email) by the carrier or entity. This ensures that the adjuster is not a "salaried" employee of any insurance company, which is the first step in establishing disinterest and impartiality. In certain cases a third-party administrator may not even clearly indicate which party they represent to provide for a fully neutral viewpoint.
An I/A is paid on a flat-rate or "billable time & expense" basis and all of his fees are paid by the insurance carrier. A flat rate schedule is usually limited to property & casualty assignments but they increase as the recoverable cost value (RCV) rises. The purpose of this is to compensate the adjuster for additional time spent estimating a loss (if requested) but also to prove the carrier did not pay the I/A to lower the claim.
Our overall experience as I/A's has been that insurance carriers and customer/claim reps alike prefer to close their claims in a timely manner and pay their claim fairly when policy coverage is applicable. Beyond impartiality reasons several carrier's use I/A's because they lack the number of claims in a certain area to employ a full-time salaried adjuster.
Independents may be good interpreters of policy language based on their experience with a wide range of claim situations but are not attorney's and should not advise you in any legal capacity. Click here for information about attorneys.
