PUBLIC ADJUSTERS VS INDEPENDENT ADJUSTERS: WHAT’S THE DIFFERENCE?
There are public adjusters and there are independent adjusters. What’s the difference between the two professionals? Is there a difference between a public adjuster and an independent adjuster? Today, we’re explaining everything you need to know about the difference between the two.
INDEPENDENT ADJUSTERS WORK FOR THE INSURANCE COMPANY
Many people think independent adjusters and public adjusters are two words for the same profession.
That’s not true.
There is absolutely a difference between public adjusters and independent adjusters – and it’s a very important difference.
Both types of adjusters perform the same basic job: they adjust or manage your insurance claim to determine the claim settlement amount, if any, that applies.
An independent adjuster, however, works for the insurance company. Despite the fact that they have “independent” in their name, an independent adjuster is not a free-wheeling mercenary. Instead, an independent adjuster is a contractor hired by your insurance company. Their ultimate goal is to represent the rights of your insurance company.
Independent adjusters have no obligation to represent you, the policyholder. They technically represent both the insurance company and the policyholder. However, their bottom line is to represent the person paying their paycheck – which is your insurance company or the claims company hired by your insurance company.
It’s important to note that independent adjusters are different from company adjusters. Your insurance company may have it’s own adjusters on its permanent payroll, known as staff adjusters or company adjusters. Independent adjusters, meanwhile, are hired on a contractual basis for specific claims. Like a public adjuster, an independent adjuster is typically paid based on a percentage of the claim.
WHAT DOES AN INDEPENDENT ADJUSTER DO?
An independent adjuster’s job is to represent the rights of an insurance carrier as they handle your claim.
When you make a claim with your insurance company, your company will assign its own company adjusters, or also known as staff adjusters, to your case or they will hire an independent adjuster to manage your claim.
Like any adjuster, an independent adjuster will analyze the facts of your claim, analyze your policy, then determine adequate compensation. The goal of an independent adjuster is to pay you the lowest amount of money they’re legally obligated to pay based on the terms of your insurance policy.
A PUBLIC ADJUSTER WORKS EXCLUSIVELY FOR THE POLICYHOLDER
A public adjuster, on the other hand, works for you – the person who holds the insurance policy. Public adjusters are also often referred to as private adjusters or private loss adjusters.
A public adjuster’s goal is to help the policyholder with the intricacies involved in the claims process. For many policyholders, this is their first major claim. A lot of money is at stake. A public adjuster, or private insurance adjuster, ensures you’re getting the exact amount of compensation you’re owed based on the terms of your insurance policy.
If you need help managing your claim, or if you believe your insurance company’s offer is inadequate, then you may wish to hire a public adjuster. Once you hire your own private insurance adjuster, that professional will begin negotiating with your insurance company or the independent adjuster hired by that insurance company.
Public adjusters might work on their own. Or, they might work as part of a larger firm of public insurance adjusters.
Obviously, public adjusters can’t be expected to work for free. Public adjusters are certified professionals with a unique skillset. However, most public adjusters do not charge fees upfront, nor do they charge hourly rates. Instead, public adjusters typically charge a flat rate of approximately 10% of the final claim settlement amount.
The Priorities of an Insurance Adjuster vs Public Adjuster
While both types of adjusters evaluate property damage and interpret insurance policies, their key priorities differ a lot.
Insurance adjusters monitot claim costs, focus on adhering to insurer guidelines, closing claims efficiently, and protecting the carrier’s financial exposure. Their responsibility is to protect the insurer’s interests, which naturally leads to more conservative assessments and settlement recommendations.
On the other hand, public adjusters work exclusively for the policyholder and handle the claim from a completely different angle. Their priority is to maximize the policyholder’s recovery through iidentification of the full scope of damage, including structural, personal, and secondary losses. This way they achieve accurate valuation based on real repair or replacement costs and negotiating the highest settlement possible under the terms of the policy.
Do Independent and Public Adjusters Work Together?
Yes, theu do. While they represent different interests, independent adjusters and public adjusters regularly interact during the damage claims process.
Independent adjusters gather facts and submit reports to the insurance company. Public adjusters assess those findings, supplement missing information, and negotiate discrepancies. Their relationship is often professional and procedural rather than adversarial.
A public adjuster may:
- Request additional inspections
- Submit revised estimates
- Appeal incomplete damage assessments
- Provide documentation that supports higher costs
- Clarify policy coverage on behalf of the client
Both adjusters may walk the property together to compare findings. This collaborative interaction ensures the insurer has accurate information and the policyholder has representation throughout the entire process, from starft to finish.
Public Adjuster vs Insurance Adjuster : Licensing Differences
Both public adjusters and independent adjusters must be licensed, but the licensing paths differ:
- Public Adjusters: They must hold a public adjuster license issued by the state, pass an exam, meet bonding or insurance requirements, and complete continuing education.
- Independent Adjusters: They are licensed to adjust insurance claims on behalf of insurers or insurance companies and often hold multiple state licenses or reciprocal licenses through adjusting firms.
The key licensing distinction is that public adjusters are licensed specifically to represent the policyholder, not the insurance company.
How Each Adjuster Gets Paid
Although both roles are involved in calculating claim values, the financial structure behind each is fundamentally different.
Independent adjusters are paid directly by the insurance company. They may receive a flat fee per claim, a day rate, or an hourly rate. Their income does increase based on the amount that’s paid to you. Their job is to handle claim costs and strictly adhere to insurer guidelines.
Public adjusters, on the other hand, work on a contingency fee, typically receiving 10% of the final settlement, depending on state regulations and claim complexity. They only get paid if you get paid, which aligns their efforts with securing the highest legitimate settlement available under your policy.
In short, independent adjusters are incentivized to protect the insurer’s bottom line, but public adjusters are incentivized to protect yours.
Public Adjuster vs Insurance Adjuster: Side-by-Side Comparison
| Category | Public Adjuster | Independent Adjuster |
| Who They Represent | The policyholder only. | The insurance company only. |
| Primary Responsibility | Protect the policyholder’s financial interests and maximize the settlement. | Protect the insurer’s financial interests and control claim costs. |
| Payment Structure | Contingency-based; paid only after you receive your settlement. | Paid by the insurance company (flat fee, hourly rate, or per-claim payment). |
| Typical Fee or Percentage | Usually,10% of the final settlement (regulated by state laws). | No percentage of claim; compensation does not increase based on your payout. |
| Who Hires Them | You, the policyholder. | The insurance company. |
| Negotiation Authority | Can negotiate directly with the insurer on your behalf. | Cannot negotiate higher payouts for you; must follow insurer guidelines. |
| Inspection Approach | Conducts a detailed, comprehensive assessment of all damages, including hidden or secondary losses. | Conducts a general assessment based on insurer standards to determine minimum contractual payout. |
| When They Get Involved | Can be hired before filing, during the claim, or after receiving a low offer. | Assigned automatically by the insurer once you file a claim. |
| Licensing Requirements | State-issued public adjuster license, exam, bonding, and continuing education. | Licensed to adjust claims for insurers; may hold multiple state or reciprocal licenses. |
| Incentive Alignment | Incentive increases with a higher settlement for the policyholder. | Incentive is tied to keeping payouts within insurer-approved limits. |
CONCLUSION ON INSURANCE CLAIM LOSS ADJUSTERS
There’s an important difference between public adjusters and independent adjusters. A public adjuster works for the policyholder, while an independent adjuster is hired by your insurance company on a contractual basis to manage the claim. To hire a qualified public adjuster to represent your case, request a free consultation through ClaimsMate today!
If your home or your business has suffered a loss, please call our experts at (888) 411-7422 or visit www.piccfla.com for a FREE claim analysis with PICC.
