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:
Before you sign up for an exam, you need to know the basic allegiance of each role:
| Career Feature | Independent Adjuster (IA) | Public Adjuster (PA) |
|---|---|---|
| Who Hires You? | Insurance Companies / IA Firms | The Policyholder (Homeowner/Business) |
| Who Pays You? | Paid by the insurance company (Hourly/Fee Schedule) | Fee or commission based (Paid by you/client) |
| Job Stability | High volume, especially during a natural disaster | Fluctuates; you must hunt for clients |
| Earning Style | Volume-based (Turn and Burn) | Value-based (Commission based on a percentage) |
| Loyalty | Works on behalf of the insurance company | Work on behalf of the client |
| Average Annual Income | $50,000 to $100,000+ | $65,000 to $77,000 |
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.
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.
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:
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.
An independent adjuster is hired on a fee schedule. You get paid a percentage of the claim amount or a flat fee per claim.
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.
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.
A public adjuster will work much more intimately with the client. As a public adjuster you:
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.
A public adjuster is hired on a contingency basis. You are commission based on a percentage of the final settlement (usually 10-20%).
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:
| Skill | Independent Adjuster Application | Public Adjuster Application |
|---|---|---|
| Policy Knowledge | Used to find exclusions and limit liability for the insurer. | Used to find loopholes and coverage for the insured. |
| Construction Knowledge | Needed to create a "fair market" repair estimate. | Needed to prove why a repair fails and replacement is necessary. |
| Negotiation | Minimal. You submit reports to desk adjusters. | Extensive. You argue face-to-face with the company adjuster. |
| Sales | None. Work is assigned to you. | Critical. You must convince a homeowner to hire a public adjuster. |
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 through a 5% to 20% commission on each claim settlement.
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 independent 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 independent adjuster. You cannot be both at the same time.
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.
Independent 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.
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.
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 explain:
| Job Title | Description / Perks | Best For | The Catch |
|---|---|---|---|
| Staff Adjusters | These are W-2 employees. You get a car, a laptop, benefits, and a steady paycheck. | People who want stability and don't mind corporate ladders. | You have zero autonomy. You do exactly what the insurance carrier tells you. |
| Independent Adjusters (IA) | You are a "gun for hire." You might work for a firm like Crawford or Sedgwick. | People who want to hustle, travel, and make cash quickly during storm seasons. | Feast or famine. If there is no natural disaster, there might be no work. Also, you have no job security; you are hired on a contract basis. |
| Public Adjusters (PA) | You are an entrepreneur. You work on your behalf and the client's behalf. | Sales-minded individuals, contractors, and those who want to help people fight the system. | It takes time to build a reputation. You only get paid when you settle a claim. |
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.
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.
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.
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.
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.
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!
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