An independent adjuster is an insurance claims adjuster who is not employed by an insurance company but whose services can be hired by anyone who needs help adjusting their insurance claims. When claims occur in remote areas where the company does not have an office staff or when the nature of the claim necessitates specialized knowledge, insurance companies will hire an independent adjuster. Instead of maintaining an in-house staff of claims adjusters, self-insured companies that do not have insurance coverage may hire an independent adjuster.
The primary responsibility of an insurance claims adjuster is to investigate and defend or settle insurance claims on behalf of the insurance company. Insurance companies write first-party insurance policies for homeowners and commercial property, as well as third-party insurance policies like general liability and automobile liability. Customers present the insurance company with first-party claims for damage to insured property. The insurance claims adjuster must collaborate with the customer to determine what damage is covered by the policy and to reach an agreement on a settlement amount.
Unrelated parties who have been injured or whose property has been damaged as a result of the insured’s actions file third-party claims against the insurance company’s customers. The insurance adjuster will then look into the extent of the insured’s liability and try to reach an agreement with the third party.
In most cases, an insurance company will have its own claims adjusters to handle all claims related to the policies it issues. The insurance company, on the other hand, is frequently unable to maintain a staff in all of the areas where it has policyholders. In areas where there aren’t enough claims to justify full-time employees, an independent adjuster helps the insurance company service its business. In the event of a catastrophic loss, the insurance company may be understaffed and unable to respond to a large number of claims in a timely manner. Independent adjusters play an important role in assisting insurance companies in responding quickly to catastrophic claims.
An independent adjuster can work for a company that employs many independent adjusters or be self-employed as a sole proprietor. Multiple insurance companies may hire the same adjuster or the same company. They are not required to work for a single insurance provider.