All About Airlie Beach AUS News

What are the 2 types of adjusters?

Sep 10

There are generally two types of adjusters. "independent adjusters" work for the insurance company. And "public adjusters" work for policyholders. Public and independent adjusters must be licensed according to the laws of their state.

  • Independent Adjuster- An independent adjuster is someone who works for an insurance company. Cannot adjust claims on behalf of the policyholder. An insurance company may hire an independent adjuster as either a "staff" adjuster or a "field" adjuster who handles claims in a specific location. "Specialty" adjusters may also be included in staff adjusters. These include workers' compensation adjusters and accident & medical adjusters.

  • In a disaster such as a hurricane or a flood, an independent adjuster may work for adjusting firms that send teams of adjusters. These adjusters are known as "catastrophe" adjusters.
  • Many states call their adjuster licenses "Property & Casualty Adjuster", "General Lines Adjuster", or "All Lines Adjuster". Independent Adjusters work for insurance companies either as employees or as independent contractors.
  • Public Adjuster - A public adjuster is an independent contractor who represents the financial interests only of the insured named on the policy. Public adjusters are paid by the insured and not the insurance company.

Public adjusters are prohibited from adjusting liability claims. State laws also limit their ability to adjust property insurance claims. Individuals can have independent/staff adjuster and public adjuster licenses in some states. However, they cannot hold them concurrently for the same claim. Some states forbid individuals from holding a public adjuster and an independent/staff license simultaneously. This is because it could create conflicts of interest.