IA Playbook Pt 3 - Types of Adjusters (Audiobook)

This episode explores the various paths within the insurance adjusting industry, detailing the roles of company adjusters, public adjusters, and independent adjusters. We dive into how adjusters are compensated, the types of claims they handle, and how to identify which path suits you best in your career. 

• Overview of types of adjusters: company, public, and independent 
• In-depth description of different claims adjusters manage 
• Distinction between adjusters and appraisers 
• Defining catastrophic versus daily claims 
• Breakdown of payment structures for adjusters

Chapters

• 0:00 Understanding Types and Roles of Adjusters
• 10:43 Maximizing Earnings as an Adjuster

Transcript

Speaker 1: 0:16

Types of Adjusters. In the world of insurance adjusting, there are different types and roles that fall under the big umbrella of adjusters, depending on how you are employed. This changes the type of adjuster you are. The types of claims you handle also provide unique opportunities, titles and challenges. Plus, your employment type and claim type greatly affect how you're paid as an adjuster. But don't worry, by the time you finish this chapter, you'll have a crystal clear understanding of where you fit in, how it all works and how. The eXp free roadmap makes starting simpler than you ever thought possible. So let's break this down. Types of employment there are three major types of adjusters Company adjuster or staff adjuster, public adjuster and independent adjuster. Each of these paths has its own advantages and challenges. Let's briefly review them so you can start to see which might be right for you.

Speaker 1: 1:21

Company or staff adjuster A company adjuster works for an insurance company. These adjusters are salaried employees who often receive benefits like health insurance and even a company car if their job requires it. They typically work traditional business hours and enjoy stable employment. A college degree is often required for these roles and, while they may sound appealing, they come with limitations. You work for the insurance company, not for yourself and your ability to grow is tied to the company's ladder. While this is the traditional way to become an adjuster, it's not the only way and it's certainly not the fastest. In fact, it's the opposite of the and it's certainly not the fastest. In fact, it's the opposite of the XP-free roadmap. We'll show you Public Adjuster. Public adjusters are hired by property owners to represent them. Unlike working for an insurance company or an IA firm, public adjusters are business owners. They're responsible for finding their own customers and proving that the property owner is owed more from the insurance company based on their policy. This creates a natural tension between public adjusters and insurance companies, making it difficult, if not impossible, to transition into any other type of adjusting work later. Public adjusting is a unique niche and not one we'll focus on in this playbook.

Speaker 1: 2:49

Independent Adjuster, an independent adjuster, is not an employee, but an independent contractor. That's why they're called independent. Often, independent adjusters get work through dispatching companies called independent adjusting firms or IA firms. These firms act as a middleman between you and the insurance companies, assigning you claims to handle on their behalf. Here's an easy way to picture it Think of Uber. Riders are the insurance companies. They need a ride or claims handled and request help through Uber, the IA firm. Uber then matches them with a driver. That's you, the independent adjuster. You are then a business owner, not an employee, which means you control your workload, decide which firms to work with and have the flexibility to grow your career on your terms. But here's the important piece when you become an independent adjuster, you're not just getting a job, you are starting a business. And guess what? The eXp free roadmap is designed specifically to help you navigate this new territory, so there's no guesswork and no unnecessary hurdles.

Speaker 1: 4:06

Types of roles and claims. Another way to classify adjusters is by the types of jobs or claims they handle. This is where a lot of confusion happens. You might hear about an all-lines adjuster license or a property and casualty or P&C license, which legally allows you to handle different types of claims, but what really matters in the field are the roles you perform and the property types you focus on. Let's break it down into the most common types of claims and roles. You'll see Property or residential claims.

Speaker 1: 4:40

Adjuster Hand handles damages to residential properties, either remotely or in person. Autoclaimsadjuster focuses on processing aspects of autoclaims, including damages and liability. Autodamageappraiser assesses the damage and value of vehicles, but doesn't settle the claim. Fnol, or First Notice of Loss Adjuster takes the first statement of documentation from the claimant. Liability Adjuster determines who is at fault in the claim. Total Loss Adjuster specializes in determining the value of totaled vehicles. Commercial Property Adjuster handles claims for commercial buildings, hotels and other non-residential properties. Crop Adjuster Inspects damaged crops to determine coverage and loss value. Now, this is just a sampling. There are many more. Each of these roles opens up different opportunities, but what makes them exciting is that they're all possible as you develop your career. Some are more accessible than others as you get started, but the ability to climb the adjusting ladder gives you endless directions to go. But the hardest part is getting started. To get started, you just need the right training, certifications, guidance and this book will walk you through how to take each step to get started with the eXp free roadmap.

Speaker 1: 6:10

Adjuster versus appraiser. For the strategies I'll share in this book, it's important to understand the difference between an adjuster and an appraiser. An adjuster is the role most people are familiar with. Adjusters are licensed. They handle claims, inspect damages and, most importantly, write checks to settle claims. This ability to write checks is why adjusters need a license. Appraisers, on the other hand, focus on the field inspection. They schedule appointments, inspect damages, take photos and document everything thoroughly. But here's the key Appraisers don't write checks. They submit their findings to an adjuster who makes the final call. Here's an easy way to remember the difference the appraiser writes the estimate, the adjuster writes the check. I started my career as an independent auto damage appraiser, later obtaining my adjuster license, and became a full-fledged adjuster. Both roles are important in the insurance world and you can specialize in either, depending on your interest and skills. Here's the best part the eXpFree roadmap is going to help you build the expertise for both without wasting years trying to figure it out on your own.

Speaker 1: 7:31

Catastrophic vs Daily Claims. We can also classify adjusters by the type of claims they handle catastrophic or daily. When a major event like a hurricane or wildfire hits, catastrophic adjusters are called in to handle claims en masse. It's intense, fast-paced work that often involves traveling to disaster areas. Daily adjusters handle claims that happen every day, like car accidents, burst pipes or fallen trees. This work is more stable, less competitive and localized, making it a great option for adjusters who prefer consistency and staying close to home. Both paths offer incredible opportunities and, as you'll see in the eXpFree roadmap, the choice is yours. We give you the tools and knowledge to succeed in either arena.

Speaker 1: 8:28

How adjusters get paid? Adjusters don't just differ in their roles and employment types. They also get paid in different ways. Depending on whether you're working catastrophic claims, daily claims or other niches, your compensation model will vary. Here's how adjusters typically earn Hourly. Some company adjusters and desk adjusters are paid an hourly rate. This is most common for company adjusters or independent adjusters working desk roles on long-term deployments. While stable, it often lacks the earning potential of other payment models Per claim or piecework.

Speaker 1: 9:10

Independent adjusters and appraisers handling daily claims are often paid per claim. For instance, if you inspect a damaged car or wrecked semi, you might earn a set fee of $50 all the way up to $500 depending on the complexity and location of the claim. This structure rewards speed and efficiency. Payment for mileage is often included in certain per-claim models. For residential property adjusters, payment is often tied to a percentage of the claim's value. This is based on a fee schedule where larger claims pay more. For example, a $50,000 claim might pay you 3% or $1,500. That's an exaggerative example, but you get the idea. This model can lead to big earnings during major catastrophes.

Speaker 1: 10:05

Salaried Company adjusters and collision estimators. Those who write auto damage estimates at repair shops are typically salaried employees with benefits. This offers stability but limits flexibility and earning potential compared to independent adjusting Time and expense or T&E. Certain claim types, like heavy equipment or RVs pay time and expense. Claim types like heavy equipment or RVs pay time and expense. You are paid an hourly rate $60, for example to handle the claim, including drive time.

Speaker 1: 10:44

Because of the different ways you can get paid, it is difficult to say how much you will earn starting out as an independent adjuster. As a business owner, you can increase the rate at which you acquire clients and add different services and certifications to your career to increase the amount you earn and the speed at which you earn it. Starting out, a salaried adjuster earns $40,000 plus and most independent adjusters, if they're able to get consistent work, can earn about the same or more their first year. However, I've also seen first-year independents earn well above six figures when they maximize opportunities with daily and catastrophic claims and they gain their valuable certifications and build strong relationships with IA firms.

Speaker 1: 11:24

Going on a tangent for the audio book only here the way that I explain it to most people on a phone call is $40,000 is average. That's the average you can expect if you live in an average market and you have average marketing ability. If you are better than average at marketing yourself to firms or live in a better than average market, it adjusts. Or if you're in a less than average market or less than average good at marketing yourself, you're going to go down. So that's kind of the way you can think about this. Now back to the regularly scheduled program. Here's where it gets interesting. Now that you understand the roles, payment structures and employment types, you might be wondering which path should I take and how do I get started. You might be wondering which path should I take and how do I get started? The answer depends on your current situation, goals and income needs. In the next chapter you'll see the reason why the EXP-Free roadmap for independent adjusters is needed.