Insurance adjusters — Staff, Independent, or Public — play distinct roles in the insurance claims process, and their affiliations and responsibilities vary significantly. Understanding the insurance adjuster types is critical if you are having problems with your claim. Here are the key differences between insurance company(staff) adjusters, independent adjusters, and public adjusters:
- Insurance Company (Staff) Adjuster:
- Role: Insurance company adjusters, also known as staff or in-house adjusters, work directly for an insurance company. They are employees of the insurer.
- Affiliation: Employed by the insurance company.
- Responsibilities:
- Evaluate claims made by policyholders.
- Determine coverage limits and benefits.
- Investigate the circumstances of the claim, including damage assessment, liability assessment, and coverage validation.
- Negotiate settlements on behalf of the insurance company.
- Serve the interests of the insurance company by minimizing claim payouts while ensuring compliance with policy terms and legal requirements.
- Bias: Their primary loyalty is to the insurance company that employs them, which may create a perception of bias in favor of the insurer’s interests.
2. Independent Adjuster:
- Role: Independent adjusters are not employees of any single insurance company. They work as independent contractors and can be hired by multiple insurance companies to handle claims on a case-by-case basis.
- Affiliation: Contracted by insurance companies on a per-claim basis or work for third-party adjusting firms.
- Responsibilities:
- Assess and investigate insurance claims.
- Provide objective evaluations and recommendations to insurance companies.
- Negotiate settlements based on their findings.
- Act as a neutral third party between the policyholder and the insurance company.
- Bias: Independent adjusters are expected to be impartial and objective since they do not have a direct allegiance to any specific insurer. They aim to provide fair assessments and settlements.
3.Public Adjuster:
- Role: Public adjusters work exclusively on behalf of policyholders, not insurance companies. They represent the interests of the insured during the claims process.
- Affiliation: Hired by the policyholder when they believe they need assistance in handling a claim.
- Responsibilities:
- Evaluate the policyholder’s insurance coverage.
- Assess the extent of damage or loss.
- Prepare and present a claim to the insurance company.
- Negotiate with the insurance company to secure a fair settlement on behalf of the policyholder.
- Advocate for the policyholder’s best interests and aim to maximize the claim payout.
- Bias: Public adjusters are advocates for the policyholder, and their loyalty is solely to the insured party. They work to ensure that the policyholder receives the full and fair compensation to which they are entitled. Sortable list of public adjusters.
In summary, the primary difference among insurance adjuster types lies in their affiliations and allegiances. Insurance company adjusters represent the insurer, independent adjusters work as neutral third parties, and public adjusters exclusively advocate for the policyholder. When hiring an adjuster, policyholders should consider their specific needs and whether they want an advocate to help them navigate the claims process (public adjuster) or are comfortable with an insurer-appointed adjuster (insurance company or independent adjuster).