Public Adjuster vs Independent Adjuster: Choosing Your Career Path

Public and Independent Adjusters follow two very different career paths. One works for the policy holder, while the other works for the carrier. Each path offers unique benefits and hurdles, which also confuse new adjusters.

We explain everything from salaries to every day responsibilities to help you make the best possible choices. Here's everything you should know about public and independent adjusters:

• IAs work for the insurance company, and PAs work for the homeowner.
• IAs get flat fees from the carrier, and PAs take a 10% to 20% cut of the win.
• IAs get claims handed to them while PAs have to market themselves.
• IAs focus on volume and strict guidelines, while PAs focus on value and aggressive negotiation.
• IAs aim to limit liability for the insurer, while PAs find reasons to maximize the payout.
• IAs hit $150k+ during heavy storm years, while top PAs clear $200k+ on big claims.
• You can't do both at once because it’s a conflict of interest, so pick a side.

Overview of Public Adjuster vs Independent Adjusters

Before you sign up for an exam, you need to know the basic allegiance of each role:

Independent Adjuster Path: The "Company" Road

An Independent Adjuster (IA) is hired by the insurance company. This leads to certain limits, possibilities, and perks, including the ability to work more flexibly and at better pay scales.

What Do Independent Adjusters Do?

As an IA, you are an adjuster that works for the carrier, but technically you are an independent contractor. You are hired on a contract basis by third-party firms (IA Firms) that hold contracts with major insurers like State Farm or Allstate.

When a hurricane hits or a freeze causes widespread water damage, the insurance company will assign claims to your firm, and your firm assigns them to you.

Independent Adjuster Job Details

An independent adjuster works on volume. You might receive 10, 20, or even 50 claims in a week during a catastrophe event. Your job is to:

• Visit the property damage.
• Document the damage.
• Write an estimate using software like Xactimate.
• Submit it to the desk adjusters at the home office.

You are expected to follow the "estimating guidelines" of the insurance carrier. This often means you are restricted in what you can write for. If the carrier says "repair," you write "repair," even if you believe it needs replacement. You are hired by the insurance company to execute their policy and cannot interpret it creatively.

How Do IAs Get Paid

An independent adjuster is hired on a fee schedule. You get paid a percentage of the claim amount or a flat fee per claim.

• Pros: If you are fast and willing to travel for months at a time, you can make six figures quickly.
• Cons: You are paid by the insurance company, meaning if you bite the hand that feeds you (by writing estimates that are too high), you stop getting work.

Public Adjuster Path: The "Consumer" Road

A public adjuster is the only type of adjuster legally licensed to fight the insurance company on behalf of a consumer. This is the path for charismatic and well-read individuals like you.

What Do Public Adjusters Do?

When you become a PA, you work for the policyholder. Instead of being assigned claims, you have to go out and find clients. You can market yourself to homeowners, partner with roofing companies, or handle commercial property losses for businesses.

You are the expert the homeowner calls when they feel the insurance company staff is lowballing them. Like Independent Adjusters, you are often chasing storms.

Public Adjuster Job Details

A public adjuster will work much more intimately with the client. As a public adjuster you:

•  Take photos and analyze damage.
• Read the insurance policies.
• Find coverage for code upgrades.
• Calculate debris removal costs.
• Account fo business interruption.
• Handle the entire insurance claim process.

You must submit your findings and negotiate with the insurance company. You will often meet with the independent and staff adjusters at the property. This is where the battle happens.

The IA works to limit the scope, while a PA works to expand it. You assist in the preparation, presentation and settlement of the claim to ensure the client gets every penny they are owed.

How Do PAs Get Paid

A public adjuster is hired on a contingency basis. You are commission based on a percentage of the final settlement (usually 10-20%).

• Pros: One large commercial property fire can result in a massive commission check. You have higher earning potential per claim.
• Cons: It is "eat what you kill." If you don't sign clients, or if you don't get a settlement, you don't get paid.

Skill Set of PA vs IA: What You Need

The core difference between a public adjuster and independent adjuster is how each applies their skills. Here's a quick look at what each one does:

Salaries of Independent vs Public Adjusters

An independent adjuster earns between $50,000 to $100,000+ per year. IAs earn money via a per assignment basis, with an average hourly wage of $150. They have higher earning potentials because of more frequent assignments.

Public Adjusters earn between $60,000 and $70,000 on average per annum. Experienced PAs can earn well over $100,000 per annum easily. Unlike IAs, public adjusters earn their income througha 5% to 20% commission on each claim settlement.

Licensing Differences of IA vs PA

Public adjusters in Illinois must acquire a PA license. You can become a public adjuster by passing the Pearson VUE exam. Unfortunately, the exam is difficult and requires a thorough understanding of policies, adjuster terminologies, and laws. 

Illinois is a non-licensing state for Independent Adjusters, but they must attend a course to increase job prospects. Many indepedpent adjusters prefer to be CALA (Certified All-Lines Adjusters) by attending certification courses.

Additionally, independent adjusters in Illinois usually get a DHS (Designated Home State) license. Either way, you can either become a public adjuster or indepedent adjuster. You cannot be both at the same time.

Independent vs Public Adjuster Job Availability

According to a 2023 Bureau of Labor Statistics survey, there are 144,000 employed insurance adjusters. 99,490 claims adjuster (also public adjusters) are employed by various brokerages and other parties.

Indepdent Adjusters have higher job availability compared to public adjusters. This also happens to be because insurance carriers have more job openings. Public adjusters are more like freelancers and not well-known.

Public vs Independent Adjusters Career Difficulty

The career difficulty of IA vs PA depends on how well you market yourself and build connections. For example, if a PA is bad at self-marketing, they will have a much harder time finding clients.

Independent adjusters on the other hand don't have to worry about marketing. But they do have limits enforced by the insurance company. It means they have to stick to a stricter set of guidelines compared to PAs.

Both professionals have to chase storms and assignments across counties and sometimes even cities. However, PAs have more control over the type of assignments they take, making their jobs easier.

Staff vs. Independent vs. Public Adjuster: 3rd Choice

There's a third type of adjuster as well, who works on a salary basis. While they earn less compared to IAs and PAs, they have a consistent income flow. Let us 

FAQs on Public and Independent Adjusters

Can I be an independent adjuster and a public adjuster at the same time?

Generally, no. It is a conflict of interest. You cannot work for the insurance company on Monday and represent the policyholder against them on Tuesday. You usually have to surrender one license to hold the other.

Which pays more, Public Adjuster vs Independent Adjuster?

It depends on the volume. Top-tier independent adjusters can make $150k+ in a bad storm year. Top-tier public adjusters can make $200k+ by settling fewer, larger commercial property claims. PAs generally have a higher ceiling but a lower floor.

Do I need a degree to become an adjuster?

No, you do not need a degree to become an adjuster. You need to pass the state exam. However, knowledge of construction, insurance policies, PA terminologies, and Xactimate software is essential.

Is it hard to find work as a Public Adjuster?

In the beginning, yes. You have to market yourself. You are asking a homeowner to sign a contract agreeing to pay you a portion of their money. You have to prove your value and explain that you can get them a higher settlement.

What is an "all-lines" adjuster license?

This license allows you to handle various types of claims (auto, property, casualty). Most independent adjusters get an all-lines license to increase their hireability by insurance companies.

Bottom Line on Public vs Independent Adjusters

Illinois public adjusters work for the policy holders, while independent adjusters work for the insurance company. Both work on the same type of projects, but for opposing parties with a direct conflict.

Public adjusters must acquire a license from the IDoI after passing the exam. Independent adjusters do not need a state license. Instead they opt for a DHS license and CALA certification. Both careers have their drawbacks and perks.

We can help you if you want to be the people's champion with a PA career. Our classes prepare you for the exam, certification forms, and everything else. Join our PA exam classes today!