Becoming An Insurance Adjuster: A Step-By-Step Guide

If you're interested in a career in the insurance industry, you might want to consider becoming an insurance claims adjuster. In this role, you'll be responsible for investigating claims and determining an insurance company's liability. This involves tasks such as interviewing involved parties, gathering relevant documentation, and deciding on a fair settlement amount.

To become an insurance adjuster, you'll typically need to complete a few key steps. First, you'll need to meet the minimum education requirements, which is usually a high school diploma. Next, you'll need to decide what type of adjuster you want to be – staff, independent, or public. This will help you understand the specific requirements and expectations of your desired career path. Obtaining a license is also a critical step, and most states will require you to pass a licensing exam. Maintaining your license through continuing education and regular renewal is also essential.

With the right combination of education, training, and licensure, you can embark on a rewarding career as an insurance adjuster.

Make sure you meet the basic requirements, such as being 18 years old, possessing a valid driver's license, and having a high school diploma or equivalent

To become an insurance adjuster, you must meet the basic requirements. These include being at least 18 years old, possessing a valid driver's license, owning a personal vehicle, and having proficient reading and writing skills in English. You must also be capable of navigating and performing tasks in diverse settings.

In terms of education, a high school diploma or equivalent is the minimum requirement. However, some employers may prefer candidates with a degree in business or a related field. Most claims adjusters possess a college degree, so an associate's, bachelor's, or master's degree can enhance your employability. Degrees specifically in insurance are particularly appealing to prospective employers.

If you lack a degree, you may want to consider obtaining one to set yourself apart from other applicants. Nevertheless, it's important to note that even with just a high school diploma or GED, you can still become an independent adjuster. Prior work experience that has equipped you with valuable skills and insights can also be advantageous.

In addition to meeting the basic requirements and educational standards, you should also ensure that you possess the necessary soft skills for the role. These include self-discipline, an excellent work ethic, and great communication skills. Customer service skills such as patience, empathy, and the ability to communicate respectfully and effectively with individuals going through challenging situations are also highly valued in insurance adjusters.

Decide which type of adjuster you want to be: staff, independent, or public

When considering a career as an insurance adjuster, it's important to decide what type of adjuster you want to be. There are three main types: staff, independent, and public adjusters. Each type has its own unique role and responsibilities in the insurance claims process. Here's an overview of each type to help you make an informed decision:

Staff Adjuster

Staff adjusters, also known as company adjusters, are full-time employees of an insurance company. They work directly for a single insurance carrier and handle claims only for that insurer. Staff adjusters typically receive a salary and benefits such as health insurance and paid time off. They usually have a consistent schedule and work in a specific geographic location, although some may travel depending on their role. Staff adjusters can be further categorised into desk adjusters and field adjusters. Desk adjusters process claims from an office, while field adjusters go out to the site to inspect the damage.

Independent Adjuster

Independent adjusters are hired on a contract basis and often work for an independent adjusting firm. They are typically engaged when there is a high volume of claims or during catastrophic events. Independent adjusters work on behalf of the insurer but are not direct employees. They are contracted by a third-party claims-handling company, known as an Independent Adjusting Firm (IA Firm), and operate as representatives of the insurance company. Independent adjusters handle claims for multiple insurers simultaneously. They can work as independent contractors or employees and must comply with the license requirements of the state in which they work.

Public Adjuster

Public adjusters work directly for policyholders or customers, helping them investigate insurance settlements they find unfair. They are self-employed and are hired by the policyholder when they believe they have received an inadequate settlement offer. Public adjusters work solely on behalf of the policyholder to ensure they receive a fair settlement. They are paid through a commission, usually a percentage of the final settlement amount. In many states, public adjusters are required to be licensed.

When deciding which type of adjuster you want to be, consider your career goals, preferred work environment, and whether you want to work for the insurance company or the policyholder. Each type of adjuster plays a crucial role in the insurance claims process, and understanding their differences will help you choose the right path for your career.

Meet licensing requirements and obtain your license

The requirements for becoming a licensed insurance adjuster vary depending on the state or country in which you reside and plan to work. In the United States, most states require insurance adjusters to obtain a license. However, some states, such as Colorado, Kansas, Nebraska, South Dakota, North Dakota, Missouri, Iowa, Illinois, Wisconsin, Tennessee, Ohio, Virginia, Maryland, Pennsylvania, New Jersey, and Massachusetts, do not have this requirement.

If you live in a state that does require a license, you must obtain your home state license first. This typically involves completing a pre-licensing course and passing a state licensing exam. Some states may also require a background check and the payment of licensing fees. It is important to research the specific requirements for your state. Obtaining a license in your home state will often allow you to apply for a non-resident adjuster license in other states without needing to take additional exams. This is known as reciprocity.

If you live in a state that does not require licensing for insurance adjusters, it is still highly recommended that you obtain a license to increase your employment prospects. You can do this by obtaining a Designated Home State (DHS) license from another state, such as Florida. This will allow you to work in the DHS state and any other states with which it has reciprocity.

In Canada, specifically Ontario, there is a three-step process for obtaining an insurance adjuster license: obtaining a Letter of Authority, a Probationary License, and a Full Adjuster License. This process involves completing required courses, passing an exam, and meeting other requirements such as being sponsored by an adjusting firm and being legally entitled to work in Canada.

Once you have obtained your license, it is important to maintain it through continuing education credits and regular license renewal. The requirements for maintaining your license may vary depending on your location, so be sure to check the guidelines for your state or province.

Maintain your license through continuing education and regular renewal

Once you've earned your insurance adjuster license, you'll need to maintain it through continuing education and regular renewal. Each state has different requirements for maintaining your license, so be sure to read the local guidelines to make a plan for keeping your credential current.

Continuing education credits can be earned by taking courses online or in person. Some states also allow credits to be earned through employer-provided training sessions, publishing articles, or giving lectures related to the insurance claims industry. Check your state's licensing requirements to find out what continuing education credits are required and how you can fulfil those requirements.

In addition to continuing education, you'll also need to renew your license regularly. Most states issue licenses for up to two years, and you'll need to pay a fee to renew your license. Keep in mind that licenses typically expire on 31 December of even-numbered years, so be sure to plan your renewal accordingly.

It's important to stay on top of your license renewal and continuing education requirements to maintain your good standing as an insurance adjuster. This will ensure you can continue to work in the industry and provide your valuable services to those in need.

Develop essential skills such as communication, computer proficiency, and time management

Communication skills are essential for insurance adjusters as they frequently deal with different kinds of people, including insurance policyholders, insurance companies, and other experts engaged in the resolution of an insurance claim. They need to be able to explain complex insurance concepts to policyholders and work with other professionals, such as lawyers and medical providers, to gather information. Effective communication ensures that all parties receive appropriate and timely updates on a claim.

To develop communication skills, focus on both oral and written communication. Oral communication is important when speaking with policyholders, claimants, witnesses, and other professionals. Written communication is crucial for documenting conversations and events accurately, and for writing clear and concise reports.

Computer proficiency is another critical skill for insurance adjusters. Most insurance firms send claim estimates and other claim-related information electronically, so adjusters need to be proficient with computer systems. Common computer skills that are useful include data visualization and proficiency in industry-standard claims writing software, such as Xactimate. This software is used to estimate damages and process claims, and it is essential for successfully closing claims.

To develop computer proficiency, consider taking courses or tutorials on common software programs used in the insurance industry. Stay up-to-date with any advancements or changes in technology, as the industry standard may evolve over time.

Time management skills are essential for insurance adjusters, who often manage multiple claims simultaneously. They need to be able to manage their time efficiently to complete all their responsibilities and perform well in their work. This includes setting goals and priorities, managing schedules, deadlines, and calendar activities, and optimizing travel routes and workspace organization.

To develop time management skills, keep a log of your daily activities for a week or two to identify areas where you can improve your productivity. Eliminate time-wasters, such as clutter and disorganization, and focus on specific steps of the claims process, from notification of a loss to investigation, payment, and closure. Prioritize tasks based on their importance and urgency, and delegate tasks when possible to support staff or junior colleagues.

Frequently asked questions