How much can I earn as an adjuster?

(Staff Adjuster vs. Independent Adjuster)

Because staff adjusters and independent adjusters perform most of the same tasks and have similar job responsibilities, you may be asking yourself “What is the difference between staff adjusting and independent adjusting?”  There are many pros and cons between the two.

Staff Adjuster Pros

• Staff adjusters are typically paid on a yearly salary, depending on the employed insurance company.
  
  • This form of adjusting is very secure and offers consistent pay.


• Can be localized with a given zone or travel as a member of a catastrophe team.
  
  • Traveling catastrophe staff adjusters typically see a generous pay increase for time spent traveling.
  • Catastrophe differential pay varies between employers, but you can expect to see a $10,000.00 - $20,000.00 pay increase. (Granted that the staff adjuster has spent the year traveling for the company.)


• Most employers will offer generous health benefits and retirement programs.


• Staff adjusters also enjoy paid vacations and paid provisional time off.
  
  • Paid provisional time off is typically offered to catastrophe staff adjusters after working for an extended period of time away from home.
  • Adjusters are free to travel home during this time.


• The employer will provide a company vehicle and pay for fuel, travel expenses, lodging and other miscellaneous expenses that the staff adjuster will incur while working.

Staff Adjuster Cons

• Limited income.
  
  • Salaries vary between employers and adjuster experience, but staff adjusters will typically see a yearly salary between $25,000.00 - $60,000.00. (not including catastrophe differential pay)


• Requires a college degree (in most circumstances).
  
  • Most employers require a minimum of a 2 year degree.  However a 4 year degree is preferred.


• While some insurance companies employ staff adjusters on a fairly predictable basis, it is typically more difficult to become employed as a staff adjuster.
  
  • You will be competing with others for the position.
  • If you are trying to work for a specific location (i.e. your home state), you will need to wait until a position becomes available.

Independent Adjuster Pros

• Independent adjusters do not require a college degree.


• Independent adjusters are paid on a “per file” or on a flat “daily rate” basis.  Per file adjusters will earn a commission based on property damages observed and estimated.  The advantage to this type of payment system can be very lucrative!


• Experienced independent adjusters can earn a potentially high amount of income per year.
  
  • A good independent adjuster can easily bill for $1,000.00 or more per day.
  • It is very practical for an experienced independent adjuster to easily earn over $100,000.00 per year.
  • The more effort that is put into producing quality work, the more income that will be earned.

• Independent adjuster firms will typically re-deploy the adjusters that produce quality claim inspections. (Customer service is huge!)
• More deployments equal more income.

• Independent adjusters can work part-time of full-time.
  
  • Some independent adjusters will only work for a few months out of the year.
  • During the amount of time worked, it is not unusual for an independent adjuster to bill for $60,000.00 - $80,000.00 for only 3 months of consistent, hard work. (Given that the independent catastrophe adjuster is experienced and that the storm produces claim quantity to sustain work for the adjuster.)

Independent Adjuster Cons

• If an independent adjuster is not deployed, the adjuster does not get paid. (Very insecure)
  
  • While the life of an independent adjuster can be a lucrative one, it can also become financially difficult when not deployed to a storm. (SAVE YOUR EARNINGS!)


• All expenses are paid by the independent adjuster.
• Independent adjusting firms do not compensate employees on their expenses. (which means lodging, fuel, the adjuster’s vehicle, tools, equipment and all other expenses incurred will be paid out of the independent adjuster’s pocket)
• Affordable equipment can be purchased at Amazon.com.

• Some independent adjusting firms offer per diem pay to help assist with expenses.
• Keep your receipts!  Expenses can be written off on your taxes! (consult with your tax specialist)

• Because independent adjusters pay for their own equipment, certifications and training; it can become costly to get started in the industry.  Most independent adjusters can expect to spend a minimum of between $1,000.00 - $2,500.00 to get started.


• It can sometimes take up to 3 weeks after beginning work on a storm site for the adjuster to begin receiving payment for work.
• Many independent adjusting firms offer “draw pay” or “payment advances” during this time to help compensate the independent insurance adjuster.

• Unlike staff adjusters, the independent adjuster does not get paid vacation time or paid provisional time off.
• Independent adjusters are present on the storm site until they are released by either the insurance company or the independent adjusting firm.

• Independent adjusters do not get health benefits or retirement plans.
  
  • Some independent adjusting firms do offer 401k retirement programs.