Definition - What does Independent Adjuster mean?
An independent adjuster is a professional who conducts investigations, verification, negotiations, and settling of claims for or on behalf of an insurance company, a self-insured firm, or a government agency, without being under the employment of the company, firm, or agency in question.
Insuranceopedia explains Independent Adjuster
Independent adjusters are either hired through a third party firm that specializes in handling claims or are self-employed entities. They are outsourced by the insurer and may handle claims for any company, provided that they comply sufficiently with the license requirements of the state in which they perform their work.
Independent adjusters are hired mainly for two reasons. Firstly, they provide practical help in cases of major catastrophes after which a massive number of claims are filed. During this time, an insurance company may not have the manpower to investigate and negotiate on its behalf. Therefore, the insurer could consult an independent adjuster firm with the experience and manpower to handle its claims. Secondly, independent adjusters are hired for statutory reasons. That is, they may be required by law or by the provisions of the insurance contract. Other common reasons for hiring independent adjusters include the need for special expertise and the necessity to deal with claims in remote areas.