Thinking of making a career switch? Or maybe you’re looking for a new business opportunity? Either way, you may have considered becoming an independent insurance adjuster. But what does that entail? And is it really the right fit for you?
As an independent insurance adjuster, you would be responsible for investigating insurance claims and working with policyholders, contractors, public adjusters, and occasionally attorneys, to reach a fair settlement. This can be a challenging and rewarding career, but it’s not suitable for everyone.
To make it as a successful independent insurance adjuster, you need to be highly trained, organized, and detail-oriented. You must also be able to work well under pressure and handle difficult situations. The level of responsibility can be high, but the rewards can be great.
This article will give you an overview of what it means to be an independent insurance adjuster and what the industry is like. We’ll also provide tips on getting started in this field.
What Is An Independent Insurance Adjuster?
An independent insurance adjuster is a professional who investigates insurance claims and works with policyholders, contractors, public adjusters, and attorneys, to reach a fair settlement. Insurance companies typically hire adjusters to handle claims that are too complex or time-consuming for their company employees.
Independent insurance adjusters are generally self-employed, working for adjusting firms. This allows them to work on a variety of claims, which can be an advantage over working for a single insurance company. If you’re considering making a switch to independent adjusting, be sure to research the pros and cons to decide if it’s the right career move for you.
What Are The Primary Duties Of An Independent Insurance Adjuster?
The primary duty of an independent insurance adjuster is to investigate insurance claims and help policyholders, contractors, public adjusters, and attorneys, reach a fair settlement. They gather information about the claim and speak with all parties involved to get a clear understanding of what happened. They may review the policyholder’s insurance policy to make sure the claim is covered, but the determination of coverage is often a responsibility exclusively given to the insurance company’s adjuster – the person whom you, the independent adjuster, are working under.
Most independent insurance adjusters typically work on a fee schedule or percentage, which means they only get paid based on the total amount of the estimate they prepare. The more claims an independent adjuster can handle in a particular day, the more money they will earn. This can be a motivating factor to work hard to submit claims quickly and efficiently.
Duties often include:
- Communicating with policyholders to discuss their claim
- Inspecting property damage
- Reviewing insurance policies
- Preparing an estimate for repair
- Preparing reports describing the damage to another adjuster, often out-of-state
What Skills Are Needed To Be An Independent Insurance Adjuster?
Independent insurance adjusters need strong people skills to be successful in their job. They must be able to communicate effectively with policyholders, insurance companies, and other parties involved in the claim. Occasionally, they also need to be able to negotiate skillfully to reach a fair settlement with a contractor, public adjuster, or attorney.
Other important skills include:
Analytical skills: Independent insurance adjusters need to be able to gather information and analyze it to make sound decisions.
Organizational skills: They need to be able to keep track of a large amount of information and paperwork.
Computer skills: Independent insurance adjusters need to be able to use computer software to create reports and estimates.
Policy interpretation: Independent insurance adjusters sometimes need to be able to interpret insurance policies on behalf of the insurance company adjuster.
In order to verify if you have the skills required, you could look into taking an introductory independent insurance adjuster training which would give you more information on the skills required.
Adjuster University provides a 90-Day Accelerator Program for those interested in entering the property insurance field. This program has been designed to provide you with the skills and knowledge you need to be a successful independent insurance adjuster, all within three months.
How Much Money Do Independent Insurance Adjusters Make?
It’s not uncommon to hear of independent insurance adjusters making more than $100K a year, and this is because not only is the position always in demand, but because you can set your own hours and handle as many or as little claims as you want.
Claims adjusters working for insurance companies usually earn a salary. Independent insurance adjusters are usually paid on a per-claim basis, and their fees can vary depending on the severity of the claim. This means that independent adjusters have the potential to make more money than those working for insurance companies.
High-performing independent insurance adjusters can make six figures annually, some consistently in excess of $250K in a single year, while most insurance company adjusters will likely make between $50,000 and $70,000 per year.
Steps to Become an Independent Insurance Adjuster
If you’re interested in becoming an independent insurance adjuster, there are a few steps you need to take. A lot of it simply involves some planning, while other parts require taking action, learning, and getting licensed. Here’s an overview of what you need to do:
Step One: Ensure Your Path
Determine if becoming an independent insurance adjuster is the right fit for you. This means considering things like whether you’re comfortable working independently, if you have the right skills and personality for the job, and if you’re willing to put in the time and effort to learn the necessary skills.
The best way to do this is to speak with people who are already in the industry and get their insights. You can also look into job postings to see what kind of qualifications independent adjusting companies are looking for.
Step Two: Get the Right Education
While you don’t need a formal education to become an insurance adjuster, taking some courses related to the field will give you a massive leg up. Many community colleges offer programs in insurance adjusting, and there are also online courses available.
The more successful you want to be as an adjuster, the more effort you should put into your education. In addition to taking classes, you should also read books and articles related to the field, and attend conferences and seminars.
This 90-Day Independent Adjuster Accelerator Program is perfect for those who want to start their own business as an independent adjuster. Not only is it affordable, but it’s set up at a pace where you can still work your current job.
Step Three: Decide Which Kind of Adjuster You Want to Be
There are two main types of independent insurance adjusters: daily and catastrophe adjusters.
Daily adjuster is not an employee of an insurance company. They work on a contract basis, and they are usually hired by independent adjusting companies to work on specific claims in a specific geographical area that’s local to where they live. They are typically not working for a single company. Many times, independent adjusters work with multiple independent adjusting companies at once, which can be both stressful and rewarding. If you have the ability to work independently and handle stress well, then being a daily adjuster may be the right choice for you.
Catastrophe adjusters are contracted after a major disaster, such as a hurricane, tornado, wildfire, or earthquake. They also work on a contract basis, but they typically work much longer hours than daily adjusters because of the significantly greater volume of claims opened because of the catastrophe. If you are interested in this type of work, you will need to be able to work in a fast-paced, often chaotic environment and be comfortable with long hours. You also need to be able to travel, or be willing to travel, to wherever the disaster has occurred if needed.
Step Four: Get Your License
While you don’t exactly need a college degree to be an insurance adjuster, having a license shows a potential client (independent adjusting company) you understand insurance, claims, and how the industry works.
The requirements for getting a license vary from state to state, but usually involve taking an exam and completing a certain amount of training. You can find out the specific requirements for your state by contacting your state’s insurance department.
There are also many Adjuster Pre-Licensing Courses available online and in person. These courses can help you prepare for your licensing exam and will give you the basic knowledge you need to be a successful insurance adjuster.
Does My State Require a License?
Most states require insurance adjusters to be licensed, and even if yours didn’t, it’s still vital for your career. The majority of employers will not hire adjusters who are not licensed, and if you’re operating independently, you will have a hard time competing with other licensed adjusters.
In order to get your license, you will need to pass an exam administered by your state. The content of the exam will vary depending on your state, but will generally cover topics like insurance law, ethics, and principles of property and casualty insurance.
You will also need to complete a certain amount of training, which you can typically do online or through an insurance school. Once you have completed your training and passed your exam, you will be ready to start working as an insurance adjuster.
Ready To Get Started?
Becoming an independent insurance adjuster can be a great way to start your own business and control your own career. By following the steps outlined above, you can get your business up and running in no time.
Get a head-start on your new career with Adjuster University’s 90-Day Independent Insurance Adjuster Accelerator Program. This course will give you the education and resources you need to get your business up and running quickly and efficiently, and you’ll have all the skills needed to be a successful, six-figure adjuster as soon as you graduate.
Get started today to take control of your career!
