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Insurance adjuster
An insurance adjuster is someone responsible for investigating and settling claims submitted to an insurer.
What is an insurance adjuster?
An insurance adjuster, also called a claims adjuster, is a professional who investigates insurance claims to determine how much a policyholder should be paid after a loss. Adjusters review damage, verify coverage, and negotiate settlements, helping insurance companies and policyholders reach a fair resolution.
For small business owners, understanding what an adjuster does—and how to work with them—can make the difference between a smooth claim process and unexpected delays or underpayment.
What does an insurance claims adjuster do?
Insurance adjusters process claims for many types of small business insurance policies. Their job is to:
- Confirm that the insured has coverage for the incident
- Create a claim file for each case
- Speak with everyone involved in the matter to verify the loss
- Personally inspect the damage and interview anyone with injuries
- Request reports from public safety officials
- Estimate the cost of settling the claim
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Are there different types of insurance adjusters?
There are three main types of insurance claims adjusters:
Company adjusters are employees of the insurance company. Since company adjusters work for your insurer, they primarily serve the needs of their employer. Although they consider your concerns, they’re largely focused on settling claims quickly and reducing claim payouts for their companies.
Independent adjusters are self-employed adjusters whom insurers hire in certain circumstances. Independent insurance adjusters also work for insurers, except on a freelance or consulting basis. Companies may use them in cases where they don’t have a claims employee in a geographic area, are overloaded with claims, or lack an adjuster with experience in a certain type of claim.
Public adjusters are similar to independent adjusters, except they work for the insured, not the insurer. Because insurance consumers hire them, public adjusters are in a better position to provide objective advice on settlements, a percentage of which serves as their fee. And since larger settlements increase their compensation, a public adjuster’s interests will usually align with yours.
How can adjusters affect your claim outcome?
Adjusters play a key role in how much your business receives from an insurance claim:
- Company adjusters aim to control costs, which can sometimes lead to lower settlement offers.
- Public adjusters advocate for the policyholder to maximize recovery.
For example, if a small business, such as a convenience store or restaurant, suffers property damage, a company adjuster may value equipment replacement conservatively. On the other hand, a public adjuster might ensure you're reimbursed for full replacement costs, including temporary business interruption.
How do you effectively work with an adjuster?
Working effectively with an adjuster can speed up your claim and help you get a fair payout:
- Document the loss: Take timestamped photos or videos of damaged property.
- Prepare an inventory: List all damaged or lost items, including receipts if available.
- Be present during inspections: Walk the adjuster through your property and answer questions.
- Keep a record: Maintain a communication log of calls, emails, and notes.
- Ask questions: Clarify next steps, timelines, and decisions in writing.
What's the cost and value in hiring a public adjuster?
Public adjusters typically charge 5-15 percent of the claim payout. Hiring one may make sense if:
- Your claim is large or complex
- You want professional help to ensure you receive full coverage
- You prefer someone experienced handling insurance negotiations
For example, in the event of a $50,000 property claim, a 10-percent fee is $5,000. If the public adjuster can help you recover an extra $10,000, your net gain is $5,000—more than covering their fee.
When shouldn't you hire a public adjuster?
A public adjuster isn’t always necessary. In some situations, handling the claim on your own can save time and money, especially when the process is simple and the potential payout is limited.
- Minor claims that are straightforward to process
- Situations where the claim payout is smaller than potential fees
- When your insurance company can quickly handle the claim and you're comfortable managing it yourself
How to verify licensing and avoid adjuster scams
Public adjusters must often be licensed by your state. To protect your business:
- Check your state insurance department website for licensing verification.
- Watch for red flags, such as requests for upfront fees outside standard agreements, vague contracts, or pushy sales tactics.
- Only hire reputable adjusters with clear credentials and positive reviews.
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Updated: December 18, 2025
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