Some people say being a claims adjuster is the toughest job in theinsurance industry.

It's easy to see why. Dealing with people who have suffered somekind of loss is not easy.

Add in the fact that the job often attracts lots of anger andanimosity from people who, expecting to get huge payouts, find thatthey are being offered less than they expected. And let's not eventalk about the large caseloads, length of time it sometimes takesto complete an insurance claim and general occupational stress.

All of these taken together help explain why this job ischallenging.

However, being a claims adjuster can be a highly rewarding rolefor the right person. According to Payscale, insurance claims adjusters enjoytheir work and report high levels of job satisfaction. In general,there are two types of adjusters, and this influences how eachperson experiences their job:

1. A staff adjuster:  Someonewho works for the insurance company that will pay the claim, athird-party administrator or self-insured company.
2. An independent claims adjuster:  Acontractor who works independently but is hired by insurancecompanies, third-party administrators or self-insureds to settleclaims.

Related: Insurance agents are retiring. Canmillennials fill the void?

There are pros and cons to being a staff or an independentadjuster. IAs have a little more flexibility in scheduling. (Photo:Shutterstock)

Staff or independent adjuster?

While larger insurance companies typically have claims adjusterson staff, smaller insurers or companies that do not have a physicallocation in a state where they offer insurance often rely onindependent adjusters. Each of these arrangements has pros andcons, and it is best to weigh each before deciding what is best foryou.

Benefits of being a staff claims adjuster:

• You enjoy a steady pay check that does not fluctuate from monthto month.
• You enjoy employment benefits like health insurance, dentalcoverage, paid vacation and company contributions towards yourretirement (401K) plan.
• You work a fixed number of hours per week.
•  You undergo training and professional developmentpaid for by the company.
• Company-issued laptops and possibility of a company car.
• Errors and Omissions coverage.

However, there are cons and these include:

• Less money than the independent claims adjuster in the longrun.
• Less flexibility in your time and the type of assignment youaccept.
• Lots of overtime work and short vacation allotted.
• College degree typically required.

Working as an independent claims adjuster also has its benefitsand these include:

• Freedom to choose who to work for and the kind of assignment orlocation.
• Earning more income than a staff adjuster based on feeschedules.
• Freedom to work from home or elsewhere.
• More down time for vacations between assignments.
• More employment options since adjusting firms do not requirecollege degrees but often hire based on experience andtraining.

The cons include:

• Lack of stability in working hours. Sometimes there will belots of work, while other times will be slow.
• No benefits. Your health insurance and 401K are yourresponsibility
• You pay for your own computers and other required equipment.This may include your transportation costs and maintenance of yourown vehicle.
• You pay your own E&O policy. 

Related: Tips for identifying and hiring topinsurance professionals

The latest Claims magazine salarysurvey finds that most adjusters work more than 40 hours per week.(Photo: Shutterstock)

Does insurance pay well?

Pay for insurance claims adjusters averages $51, 000 per annum.According to Payscale, when bonuses of around $7,000 are added intogether with profit-sharing proceeds where available, total incomefor staff adjusters will range from $34,000 to $74,000, dependingon performance.

While actual verified incomes of independent claims adjusters ismore difficulty to obtain, it is generally said to range between the $85,000 to sixfigures, with salaries as high as $300,000 quoted.

Different states have different licensing requirements forinsurance adjusters, so be sure to familiarize yourself with what'srequired in your state.

Frank Medina, the principal of Frank MedinaInsurance has worked as both a staff claims adjusterand as an independent claims adjuster throughout his insurancecareer. Contact him at [email protected]. Opinionsexpressed are the author's own.

Related: Here are the results of the 2016 Claims SalarySurvey