Independent Adjuster

What Does Independent Adjuster Mean?

An independent adjuster is a professional who investigates, verifies, negotiates, and settles claims for or on behalf of an insurance company, a self-insured firm, or a government agency, without being employed by the company, firm, or agency in question.

Insuranceopedia Explains Independent Adjuster

Independent adjusters are either hired through third-party firms specializing in handling claims or operate as self-employed entities. They are outsourced by insurers and may handle claims for any company, as long as they meet the licensing requirements of the state in which they work.

Independent adjusters are primarily hired for two reasons. First, they provide essential support during major catastrophes when a large number of claims are filed. In such cases, an insurance company may lack the manpower to investigate and negotiate claims on its behalf. As a result, the insurer may turn to an independent adjuster firm with the necessary experience and resources to manage the claims. This is part of why homeowners who need to file a hurricane insurance claim often end up dealing with an independent adjuster rather than someone from their insurer’s in-house team. Second, independent adjusters are often hired for statutory reasons, either because required by law or specified in the insurance contract. Other common reasons for hiring independent adjusters include the need for specialized expertise and the ability to handle claims in remote areas. How an insurer manages this process is one of the factors that separates the top homeowners insurance companies from the rest, since the adjuster a policyholder works with has a direct effect on how a claim gets paid.