How Independent Adjusters and Insurance Companies Work Together

Are you thinking of becoming an independent adjuster, but you are worried about finding jobs? Independent adjusters usually don’t work for a single insurance company, but they do work alongside them. We have briefly explained what an independent adjuster does, and how they work together with an insurance company when evaluating a claim. 

Independent Adjusters

First, we need to explain what independent adjusters are. In short, their job is to claim the insurance on behalf of the insurer. They do this by evaluating the scene. The reason why these adjusters are independent is that they are not hired by an insurance company, agency, or firm. Rather, they act as a third party. 

However, they don’t need to act individually, and it is possible to find a company with independent adjusters. But the term is mainly used to indicate that the agent is acting independently.

What Are the Roles?

After the accident, property damage, or anything else covered by insurance, the insurer will contact an independent adjuster. They will act as a third party, and the insurer will, in essence, outsource the claim. Whether the adjuster is working as an individual or part of the team, the result is the same. 

An insurance claims adjuster will arrive on the scene and determine whether the situation is something that the insurance company should cover. 

The goal of the independent adjusters is to determine the liability of the insurance company based on the terms of the policy. The person that started the claims process (the insured) will be the one to hire, or say pay, the independent adjusters. Insurance companies are not the ones that hire them, at least not in the majority of cases.  

When Insurance Companies Are Dependent

It is worth mentioning that there are cases when independent adjusters and insurance companies will need to work more closely. What is important here is that both should have the same goal — to assess whether the insured has the right to claim insurance. 

If an insurance company is dealing with too many cases at the same time and doesn’t have enough staff adjusters to cover all cases, they will need to go to independent contractors. This is something that usually happens during natural disasters. For example, in 2012, Hurricane Sandy destroyed more than half a million homes in New York. Home insurance claims went through the roof, and there wasn’t a company in the world that could deal with so many cases at once. 

Independent adjusters can help them ease the workload and deal with all cases properly. Furthermore, rules of some states or provision of contracts will make it mandatory to use independent contractors as well. 

Get Started with 2021 Training

If you would like to become an independent adjuster or enhance your knowledge, you have come to the right place. 2021 Training offers courses on all types of insurance adjusting at an affordable price. You can take the courses at your own pace, and we have all the resources to fully prepare you for the Texas insurance licensing exam. Additionally, if you would like to know more about what independent adjusters do and how they find jobs, feel free to give us a call! Let’s get you on the right track.