Types of Claims Adjusters: What They Do and How They Differ

Insurance claims can be complex, and claims adjusters assess damages, determine coverage, and help settle claims fairly. However, not all adjusters work in the same capacity—some are employed by insurance companies, others operate independently, and some represent policyholders directly.

Understanding these differences is essential for anyone dealing with an insurance claim.

Staff Adjusters

Staff adjusters work directly for insurance companies, handling claims on behalf of their employer. As salaried employees, they follow company policies when evaluating losses and determining payouts. Their primary responsibility is to investigate claims, assess damages, and ensure settlements align with the insurer’s guidelines. Since they represent the insurance provider, they focus on resolving claims efficiently while keeping payouts within company limits.

These adjusters typically manage claims within a specific geographic region. They conduct inspections, interview claimants and witnesses, and review policy details to determine coverage. With direct access to company resources, they can process claims faster than other adjusters. Many insurers provide them with specialized training in areas such as auto, property, or liability claims, allowing them to develop expertise in specific types of losses.

Since they are employees of the insurer, they have limited flexibility in negotiating settlements. Their decisions must align with company policies, which can lead to disputes with policyholders who believe their claim is undervalued. However, their familiarity with internal processes and direct communication with underwriters and legal teams can help expedite resolutions.

Independent Adjusters

Independent adjusters work on a contract basis, handling claims for multiple insurers rather than being tied to one company. Insurance companies hire them when claim volumes surge or when specialized expertise is needed. This allows them to work on a variety of cases, from routine property damage to complex liability claims.

Because they are not bound to a single insurer’s policies, independent adjusters must be familiar with multiple insurance providers’ guidelines. They often juggle several claims at once, requiring strong time management skills. Many work through third-party adjusting firms, which assign claims based on specialization, location, and availability. Others operate as freelancers, negotiating their own contracts with insurers.

Their compensation is typically based on a fee schedule rather than a fixed salary, meaning they earn a percentage of the total claim amount or a flat fee per case. This structure can incentivize them to process claims quickly, but it also means their income fluctuates based on workload. To remain competitive, many obtain certifications and licenses in multiple states.

Public Adjusters

Public adjusters exclusively represent policyholders rather than insurance companies. When individuals or businesses experience property damage, these professionals advocate for the highest possible settlement under the terms of the policy. They interpret policy language, document losses, and negotiate directly with insurers to ensure claims are properly valued.

Many policyholders hire public adjusters when they feel the insurance company’s initial offer is too low or when the claims process becomes overwhelming. These adjusters conduct independent evaluations, often bringing in specialists such as contractors, engineers, or forensic accountants to substantiate damages. By compiling detailed reports and presenting evidence-based arguments, they can challenge underpayments or denials more effectively than a policyholder negotiating alone.

Public adjusters typically work on a contingency basis, receiving a percentage of the final settlement rather than charging upfront fees. This arrangement incentivizes them to maximize payouts, but it also means their services are most commonly sought for larger claims where the potential recovery outweighs their commission. Regulations governing their fees vary by state. For example, Florida caps public adjuster fees at 10% for claims related to declared disasters and 20% for other claims.

Catastrophe Adjusters

When large-scale disasters strike, insurance companies face a surge in claims that require rapid response. Catastrophe adjusters, or CAT adjusters, are deployed to disaster zones to assess widespread damage caused by hurricanes, wildfires, tornadoes, and other major events. Unlike adjusters who handle routine claims in a fixed region, these professionals travel extensively, working in high-pressure environments where quick assessments are necessary to help policyholders begin recovery.

Their work requires adaptability, as they must navigate damaged infrastructure, displaced homeowners, and varying state regulations. Many are independent contractors who temporarily affiliate with insurers during peak claim periods. Due to the urgency of their assignments, they often work long hours, sometimes processing dozens of claims per week.

Specialized Lines Adjusters

Some claims require expertise beyond standard property or casualty assessments. Specialized lines adjusters handle claims involving unique risks, complex valuations, or industry-specific knowledge. These professionals work in fields such as aviation, marine, cyber liability, fine art, and environmental damage, where general adjusters may lack the technical background to assess losses accurately.

Aviation adjusters, for example, deal with aircraft damage, liability claims from crashes, and regulatory compliance issues. They must understand Federal Aviation Administration (FAA) regulations, maintenance records, and operational risks to determine the cause and extent of losses. Similarly, marine adjusters handle claims related to cargo damage, vessel collisions, and maritime liability, often working within the framework of international shipping laws.

Cyber liability adjusters, a growing segment within the industry, assess claims related to data breaches, ransomware attacks, and business interruptions caused by cyber incidents. Given the evolving nature of digital threats, they must stay informed on cybersecurity trends, regulatory requirements such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), and the financial impact of compromised systems. Their work often involves coordinating with IT security firms to quantify damages and determine whether policy coverage applies to expenses such as legal fees, notification costs, and lost revenue.