Insurance claims adjusters play a critical role in helping individuals, families, and businesses recover after a loss. Whether the claim involves a hurricane, automobile accident, fire, theft, workers' compensation injury, or another covered event, adjusters investigate the claim, determine coverage, evaluate damages, and help bring the claim to resolution.
For many people, claims adjusting offers an attractive career path because it does not typically require a four-year college degree, provides opportunities for advancement, and can offer flexible work arrangements ranging from office-based positions to catastrophe deployments across the country.
If you're considering a career as an insurance claims adjuster, the following steps will help you understand the profession, obtain the necessary licensing, and begin building a successful career.
STEP 1: Understand What Insurance Claims Adjusters Do
Insurance claims adjusters investigate insurance claims and determine how much should be paid under the terms of an insurance policy.
A typical claims adjuster may:
While many people picture adjusters climbing on roofs after hurricanes, the profession offers a variety of career paths. Some adjusters work entirely from an office or home office, while others spend most of their time in the field meeting with policyholders and inspecting losses.
Before pursuing an adjuster license, take time to evaluate your interests, communication skills, and preferred work environment. For a more in-depth look at the day-to-day duties of adjusters, we offer this excellent article: What Adjusters Do: A Look at the Day-to-Day Duties of Different Types of Adjusters
STEP 2: Choose the Type of Adjuster You Want to Become
There are three primary career paths within the claims adjusting profession.
Staff Adjusters (Also known as Company Adjusters)
Staff adjusters are employees of insurance companies. They typically receive a salary, benefits, paid time off, and ongoing training.
Many staff adjusters work as desk adjusters handling claims by telephone and computer. Others work as field adjusters who inspect losses in person.
This career path is often attractive to individuals seeking stability, structured training, and long-term career growth.
Independent Adjusters
Independent adjusters work on behalf of insurance companies but are often employed by independent adjusting firms or work as contractors.
Many independent adjusters assist insurance carriers during periods of high claim volume following hurricanes, tornadoes, wildfires, floods, and other catastrophes.
Independent adjusting can provide significant income opportunities and flexibility, particularly for adjusters willing to travel.
Public Adjusters
Public adjusters represent policyholders rather than insurance companies.
When a policyholder hires a public adjuster, that adjuster assists with documenting damages, preparing claim submissions, reviewing policy provisions, and negotiating with the insurance company.
Because public adjusters represent the insured rather than the insurer, they are typically subject to separate licensing requirements and ethical standards.
For a deeper-dive into the different types of adjusters and adjuster licenses, take a look at our article:
Step 3: Determine Whether Your State Requires an Adjuster License
Many states require insurance adjusters to obtain a license before handling claims. Licensing requirements vary by state and may include:
Some states issue independent adjuster licenses, while others do not license independent adjusters at all.
Because adjuster licensing rules are governed by individual state laws and vary significantly across the United States, it is important to review your state's specific requirements before beginning the licensing process.
For detailed information on resident licenses, nonresident licenses, reciprocity, and designated home state (DHS) licensing, visit our Adjuster License Reciprocity Guide.
Step 4: Complete Your Licensing Education
If your state requires an adjuster license, the next step is completing any required education and preparing for the licensing examination.
Quality adjuster licensing courses are designed to help students:
Many successful students follow a structured study schedule and schedule their state examination shortly after completing their course so the information remains fresh. For more information on how to select a quality adjuster licensing course that will prepare you to pass your state licensing exam, see:
Step 5: Pass the State Licensing Examination
The licensing examination evaluates your understanding of insurance concepts, state regulations, ethics requirements, and claim handling procedures.
Preparation is critical.
Successful candidates typically focus on learning the concepts being tested rather than simply memorizing practice questions and answers. State licensing examinations frequently present questions that cover the same concepts but are worded differently than those questions presented in adjuster licensing courses, making conceptual understanding essential. The questions are different because presenting the exact state exam questions in a course, or simply conveying them to another person verbally, is against the law.
After passing the examination and meeting any additional state requirements, you may submit your license application to the state insurance department.
For more information on registering for the state adjuster licensing exams and submitting your license application, visit:
Step 6: Learn the Skills Used by Successful Adjusters
Obtaining a license is only the beginning.
The most successful adjusters continually expand their knowledge and skills and most states require continuing education as a requirement of license renewal.
The areas that are especially valuable, are dependent upon the lines of authority granted by the particular adjuster license held. For example, accident & health claims adjusters would work to expand their knowledge in completely different areas than an adjuster that primarily works with property insurance claims. For property adjusters, understanding construction and estimating can significantly improve both job performance and earning potential. Furthering their knowledge of medical treatment codes and terminology would do the same for an accident & health claims adjuster.
Information on furthering your education to increase your job marketibility and earning potential, is covered in:
Step 7: Gain Experience and Find Your First Adjuster Job
After obtaining your adjuster license, the next step is gaining practical experience.
Many new adjusters mistakenly believe they need years of experience before applying for jobs. In reality, many insurance companies, third-party administrators (TPAs), and adjusting firms regularly hire entry-level adjusters and provide on-the-job training.
Staff Adjuster Opportunities
Many new adjusters begin their careers as staff adjusters working directly for an insurance company. These positions often provide:
Staff adjuster positions can be found with insurance carriers handling automobile, property, workers' compensation, liability, and health claims.
Third-Party Administrators (TPAs)
Another excellent starting point is working for a third-party administrator (TPA). TPAs handle claims on behalf of insurance companies, self-insured businesses, and government entities.
Many successful adjusters gain valuable experience with TPAs before moving into independent adjusting or management positions.
Independent Adjusting Firms
Independent adjusting firms hire both experienced and entry-level adjusters. These firms often maintain rosters of adjusters who can assist insurance companies during catastrophic events. However, these firms usually seek entry-level adjusters only if you already have experience in construction, auto repair, or another field that is related to the types of claims you will be working.
As you gain experience, opportunities may become available to handle larger and more complex claims, including hurricane, wildfire, flood, and commercial property losses.
Public Adjusting Firms
Public adjusters usually work as apprentices under a supervising public adjuster, some states even require this.
Build Your Professional Network
The insurance industry is relationship-driven. Joining professional associations, attending industry conferences, and networking with experienced adjusters can often lead to employment opportunities and career advancement.
The adjusters who continuously learn and build professional relationships are often the ones who advance most quickly.
Step 8: Continue Your Education and Expand Your Licensing
Successful adjusters rarely stop with a single license.
As your career develops, additional licenses and certifications can increase your employment opportunities and earning potential.
Many adjusters eventually obtain:
How Much Do Insurance Claims Adjusters Earn?
Compensation varies based on experience, location, specialty, and employment type.
Staff adjusters typically receive a salary along with benefits such as health insurance, retirement plans, and paid time off.
Independent adjusters are generally compensated based on fee schedules and claim assignments. During active catastrophe seasons, experienced independent adjusters may earn significantly more than traditional salaried positions.
Factors that influence earnings include:
As with most professions, the adjusters who continually improve their skills and expertise generally have the greatest earning potential. For more specifics on what claims adjusters make, this article is what you are looking for: Salary Guide by Type of Adjuster