An insurer typically maintains a team of its own claims adjusters to handle all claims reported in the policies it issues.
An independent adjuster is an insurance claims adjuster who is not directly employed by an insurer, but whose services may be retained by any party that requires an expert to adjust their insurance claims. Insurers hire an independent advisor when claims occur in remote areas where the company does not maintain office staff or when the nature of the claim requires specialized expertise. Self-insured companies that do not carry insurance coverage may hire an independent adjuster instead of maintaining an in-house team of claims adjusters.
The primary job responsibility of the insurance claims adjuster is to investigate and defend or settle insurance claims on behalf of the insurer. Insurance companies write first-party insurance policies, such as real estate and commercial property, or third-party insurance policies, such as general liability or motor vehicle liability. First party claims are submitted to the insurer by their own clients for damage to insured property. The insurance claims adjuster must work with the client to determine what damages are covered by the insurance policy and negotiate a settlement amount.
Third party claims are brought against the insurer’s clients by an unrelated party who has been injured or has suffered property damage as a result of the insured’s actions. The insurance advisor will then investigate the extent of liability on the insured’s part and negotiate a settlement with the third party.
An insurer typically maintains a team of its own claims adjusters to handle all claims reported in the policies it issues. In many cases, however, the insurer cannot maintain staff in all areas where it has policyholders. An independent adjuster helps the insurer service its business in areas where there are not enough claims to justify full-time employees. In the event of a catastrophic loss, the insurance company may also be understaffed and unable to respond efficiently to a large volume of claims. Independent advisors play a crucial role in helping insurers respond in a timely manner to catastrophic loss situations.
An independent appraiser may be self-employed as a sole proprietor or work for a company that employs many independent appraisers. The individual adjuster or company may be hired by various insurers. They are not required to work only for one insurance company.