Becoming A Private Insurance Adjuster: Steps To Success

If you're interested in becoming a private insurance adjuster, you'll need to meet certain requirements and follow specific steps. Private insurance adjusters, also known as independent or public adjusters, work directly for policyholders to help them investigate insurance settlements. This is often done when insurance companies' staff adjusters are overloaded or when claimants are in remote locations affected by natural disasters. To become a private insurance adjuster, you must be at least 18 years old, have a valid driver's license, strong communication skills, and the ability to read and write fluently in English. While a college degree is not always required, it can increase your job prospects and make you a more attractive candidate. Obtaining an insurance adjuster license is also crucial, as it demonstrates your knowledge of the profession and is required in certain states. Building up essential skills, such as self-discipline, project management, computer proficiency, and excellent organization, will help you succeed in this career.

Meet basic requirements: 18+, driver's license, own vehicle, fluent English speaker

To meet the basic requirements to become a private insurance adjuster, you must be over the age of 18 and possess a valid driver's license. You will also need to own your own vehicle and be a fluent English speaker, both in terms of reading and writing.

These fundamental requirements are in place because the role of an insurance adjuster often involves travelling to different locations to investigate damage claims for insurance companies. For example, an insurance company may hire an independent adjuster if their staff adjusters are overloaded, or if claimants are in remote locations affected by natural disasters. As an adjuster, you will need to be able to move about freely to accomplish tasks in various environments.

In addition to these basic requirements, you will also need to possess certain soft skills to excel in the role. These include self-discipline, an excellent work ethic, and great communication skills.

Decide on further education: a college degree is attractive to employers

While a college degree is not a strict requirement to become an insurance adjuster, it is advantageous when it comes to standing out among other applicants. Most claims adjusters have an associate's, bachelor's, or master's degree, and college graduates who have completed an insurance degree program are particularly attractive to potential employers. Relevant majors include communications, business, and insurance.

If you do not have a degree, you may want to consider earning one to help you compete with other applicants. However, it is also possible to become an insurance adjuster with just a high school diploma or GED, especially if you have previous work experience that has allowed you to gain beneficial skills and knowledge. Ultimately, the decision to pursue further education is up to you.

Obtain an insurance adjuster license

The requirements for obtaining an insurance adjuster license vary depending on the state in which you reside. Some states do not require a license to practice as an insurance adjuster. These include Colorado, Kansas, Nebraska, South Dakota, North Dakota, Missouri, Iowa, Illinois, Wisconsin, Tennessee, Ohio, Virginia, Maryland, Pennsylvania, New Jersey, and Massachusetts. However, if you live in a state that does not require licensing, it is still recommended that you obtain a license to increase your employability. This is because most independent adjusting firms require adjusters to be licensed, and because you will need a license to work in states that do mandate it.

If you live in a state that does require a license, you will need to pass an exam. To prepare for the exam, you can take a pre-licensing course, which is mandatory in some states. These courses are available in the classroom and online. Once you have passed the exam, you may also need to pass a background check and submit your fingerprints. You will then need to submit your license application, along with the relevant fee. The cost of this fee depends on the duration of your license.

If you live in a state that does not require licensing, you can choose any other state as your "designated home state" for gaining a license. Florida is a popular choice for this.

Once you have your license, you will be able to apply for reciprocal licenses in other states. This will allow you to work in multiple states without needing to take an exam for each individual license.

Gain experience: consider an entry-level position at an insurance company

Gaining experience in the insurance industry is crucial if you want to become a private insurance adjuster. A great way to do this is to consider applying for an entry-level position at an insurance company, such as a "claims specialist" role. This can be an excellent opportunity to learn the ins and outs of the claims process and build a network of connections in the industry.

Entry-level positions are often available as either desk adjusters or field adjusters. Desk adjusters work in-house, handling claims from an office or call centre. They may work alongside field adjusters, who perform inspections and then use the results to estimate and settle the claim. Both types of roles offer valuable experience and insights into the world of insurance adjusting.

As an entry-level adjuster, you'll have the chance to develop a deep understanding of the claims process. This includes interviewing all involved parties, speaking with witnesses, gathering relevant documentation, and determining the insurance company's liability. It's a great way to build the skills and knowledge needed to become a successful private insurance adjuster.

In addition to gaining valuable on-the-job experience, you may also have the opportunity to participate in formal in-house training programs designed for beginner adjusters. These programs can provide a strong foundation for your career and help you develop the skills needed to handle claims effectively. You may even be able to earn adjuster certifications that will enhance your resume and make you more attractive to potential clients or employers.

Working as an entry-level adjuster in an insurance company is a fantastic stepping stone towards becoming a private insurance adjuster. It allows you to build a solid foundation of experience and knowledge, connect with others in the industry, and gain the confidence needed to launch your freelance career.

Develop skills: self-discipline, project management, computer skills, etc

To become a successful insurance adjuster, you'll need to develop a range of skills, including self-discipline, project management, computer skills, and more. Here are some detailed instructions on how to improve in these areas:

Self-Discipline

Self-discipline is a critical skill for insurance adjusters, especially if you plan to work independently. It requires a strong work ethic and the ability to manage your own time and tasks without constant supervision. Set clear goals, create a structured work routine, and hold yourself accountable to high standards.

Project Management

Insurance adjusters often juggle multiple claims simultaneously, so project management skills are essential. Learn how to effectively prioritize tasks, manage your time, and stay organized. Use project management tools, create clear timelines, and stay in constant communication with all parties involved in the claims process.

Computer Skills

Computer proficiency is vital for insurance adjusters, as they rely on computers and software programs daily. Familiarize yourself with various software programs used in the industry, such as Xactimate, which is widely used for claims writing. Practice using email, creating documents, and navigating claims-adjusting software.

Communication Etiquette

As an insurance adjuster, you'll interact with multiple stakeholders, including policyholders, claimants, attorneys, and other professionals. Develop strong communication skills, both oral and written, to convey complex insurance concepts clearly and concisely. Practice active listening, empathy, and maintaining a calm and professional tone, especially when dealing with upset or emotional customers.

Attention to Detail

Attention to detail is crucial for identifying fraudulent claims and ensuring accurate assessments. Carefully review physical damage, police reports, medical records, and other relevant information. Stay organized and meticulous in your record-keeping to avoid costly errors.

Critical Thinking and Analytical Skills

Insurance adjusters must be able to analyze and interpret information to make sound decisions. Develop your critical thinking skills to assess property damage, determine coverage needs, and identify trends and patterns. Enhance your analytical abilities to evaluate losses, determine policy coverage, and solve complex problems.

Record-Keeping, Time Tracking, and Invoicing

As an independent insurance adjuster, you'll essentially be running your own business. Learn how to keep accurate records, track your time, and manage your invoicing and finances effectively. There are software programs and apps that can assist with these tasks, so find tools that work for you and ensure you stay on top of your administrative responsibilities.

Developing these skills will provide a strong foundation for a successful career as a private insurance adjuster.

Frequently asked questions