EDITOR'S NOTE: This article has beenchanged to reflect the fact that public adjusters are licensed in45 states and Washington, D.C.

Independent insurance adjusters play many roles in handlingP&C claims.

Retained by carriers to inspect an insured location and appraisedamage, independent adjusters may interview witnesses andcoordinate with government agencies, experts and contractors hiredby the insured to perform repairs. These other sources providevital information to the adjuster, who may then glean additionalestimating insight depending on the nature and scope of theclaim. 

In most states, independent adjusters are bound by strictlicensingrequirements and must learn to juggle the needs of the insuredand/or claimant in a time of crisis while professionally appraisingthe damage on behalf of the carrier. Accomplishing all of this, ofcourse, is not without its challenges. Adjusters are indeed a rarebreed—who must possess a unique skill set and be flexible enough todeal with an array of stressors and fluctuating landscapes.

This need for a unique skill set leads to the first issueaffecting independent adjusters today: attracting, hiring andtraining new adjusters.

Attract, Hire, Mentor

A qualified independent adjuster has the right combination ofpersonality and aptitude. Potential candidates must beself-starters and able to work independently while remainingconnected to a group. They must have the ability to understandvaried policy terms and conditions, legal issues and personalities.Proficiency with technology and certain procedures is alsonecessary. 

All of that said, how can employers determine if a candidate isa potential good fit for the organization?

When hiring independent insurance adjusters, an employer shouldalways ask the following question of the candidate:

• Can they think on their feet? 
• Do they have the right combination of confidence and empathy towork with the insured, who may be upset, frightened or displacedbecause of a loss? 
• Are they able to succinctly explain and document loss details?Do they understand how to preserve evidence? 
• Do they have the ability to problem-solve? Are they respectful?Do they possess prudent logic and judgment? 
• Are they able to climb a roof, trudge in water and correctlyevaluate the loss? 

Timing Is Everything 

A second issue affecting independent adjusters today is ourcultural propensity to expect instant results.

Typically when a loss has occurred, the insured notifies his orher retail insurance agent. The agent, in turn, submits a lossnotice to the carrier. Because the independent adjuster is retainedby the carrier, it is the adjuster's job to contact the insured andschedule an appointment to inspect the risk and assess thedamage.

The inspection usually takes place within several days of lossnotification. Concurrently with the risk/damage inspection, theindependent adjuster must evaluate the damage in correlation to thepolicy terms and conditions; prepare a written estimate for repair;obtain any necessary documentation such as police and fire reports;prepare a property valuation for co-insurance purposes; and preparea written report for the carrier.

The insured, on the other hand, often is most interested inquick answers. Additionally, if the insured is unhappy with theclaim result, then he or she may then turn to public adjusters,regulatory agencies or even seek counsel in an attempt to collectpayment for noncovered losses and/or increase the repair estimatesfor covered claims. It is important for the independent adjusterand claims professionals in general to recognize these addedpressures while appropriately directing and controlling the claimsprocess.

Enter the Public Adjuster

A third issue affecting independent adjusters today involvesworking with public adjusters.

During the adjustment of claims, the independent adjuster oftendeals with public adjusters who represent the insured. While somepublic adjusters serve the insured well, we find that, in moststates, public adjusters are not held to the same standards asindependent adjusters. This standard variance is a major issuefacing independent adjusters today.

Independent adjusters must adhere to certain rules andregulations that pertain to dealing with the public to protect thepublic's best interest. Even though public adjusters are licensedin 45 states and Washington, D.C., they still may not have thebackground, training and experience of independent adjusters (basedon my observations in my 30-plus years as a claims professional). 

Independent adjusters' jobs are diverse. No two days are alike,no two claims the same. While the challenges are many, the rewardsare great.