Independent adjusters are seeing fewer deployments...

Yep... It's sad, but true!  Some of the larger insurance companies, such as State Farm, are in the middle of a complete overhaul of operations.  One of the reasons, is because independent adjusters are just too damn expensive!

An independent adjuster can make a whole lot of money on a typical 3 month long deployment.  I was bringing in $15,000.00 a month back when I was at it.  Mind you, this is before all of my own expenses; but that is a ton of cash to be giving a single adjuster for a deployment!  Insurance carriers know this, and that is why they are switching over to hiring more staff adjusters than independent adjusters.  They can keep their staff adjusters on a cushy salary all year long, and deploy them when needed.  The typical staff adjuster salary ranges from $32,000.00 to $75,000.00 per year (the higher salaries usually belonging to the senior adjusters or trainers).

If you think about the economics and business behind all of that, it is way cheaper to have a staff adjuster on your payroll than to constantly be deploying independent adjusters....

Don't let that discourage you though!  Just because some of the big dogs are restructuring their employees, work flow and office environment doesn't mean that the smaller insurance carriers are not deploying independents!  If you haven't already stopped by, please check out the Independent Firms page to see an extensive list of independent adjusting firms that are always looking to add people to their rosters.

Smaller independent firms might be a great starting point for you.  The smaller companies usually have more of a personal touch.  You aren't just another number in line waiting to be called into the office for a job opportunity.  If you can manage to score a great opportunity on a smaller adjusting firm roster; then you may very well see frequent deployment opportunities.  Especially if your manager will write you a good review!

Use these small, but frequent deployment opportunities, that a smaller independent firm can provide, to build your resumé.  A strong resumé with lots of practical deployment experience could lead to a potential staff adjusting job later on down the road.  Don't let the job application for a staff position scare you!  Lots of independent adjusters I know (who are looking to become staff adjusters) do not have a college degree, but got the job anyway.  Most insurance carriers will state that a college degree is a requirement for application.  In actuality, it is just a perk that they are looking for!  APPLY ANYWAY! Take it from me!  Insurance carriers are looking to hire based on experience.  If you are a good fit, it won't matter what your educational background is!  Put yourself out there!  Whats the worst that could happen?  Who cares if a few companies turn you down...  That is all part of a typical job hunt!  I turned down several job opportunities that didn't fit me; and I got turned away by several insurance carriers before I found a carrier that offered me a good job opportunity.

You won't know until you try!

What is Bad Faith Adjusting? Is my Insurance Company/Contractor Actingin Bad Faith?

Bad faith adjusting will end your career...

When you are adjusting in bad faith you are intentionally setting the claim up to be fixed (cleaned up) by another adjuster later on down the road.  In other words, you are being lazy!  Bad faith refers to breach of contract when dealing with all involved parties (including contractors) who will assume you are acting in good faith and fair dealing.  Acting in bad faith will end your career and can also put you in jail!

Bad faith involves being dishonest or fraudulent in a claim.  Examples of bad faith claim handling could be:

• Entering into an agreement without any intent of living up to the terms that have been agreed upon. (not fulfilling the contractual obligations to the insured based on what is written in their insurance policy)


• Knowingly misrepresenting the quality of an item you are attempting to settle with the insured.


• Intent to deceive or mislead in order to gain some sort of advantage.


• Failure to thoroughly investigate a claim.


• Failure to promptly investigate the insured's property.
  
  
  
  • Time periods that are deemed acceptable in reference to the above item will be defined in the insurance policy.


• Unreasonably delaying or denying payment.


• Refusing to settle the claim in its entirety. (intentionally providing a "less than fair/reasonable" settlement on an item)

Bad faith is also a two way street.  Insureds (policy holders) and contractors may also be found guilty of acting in bad faith.  It usually involves falsifying information in an attempt to mislead the insurance company.  Yes, this includes eating deductibles!

List of Major Independent Adjusting Firms Now Hiring!

So you wanna' become an adjuster but you don't know who to work for or where to start. There are many independent adjusting firms/vendors out there who are always hiring! Some are big, others are small.  Hurricane season has had a late start this year, so many independent firms are still looking for bodies to fill the adjuster role. Hurricanes bring everyone with varying backgrounds out of the woodwork to adjust claims.   This can be a great opportunity for a new adjuster to get a foot in the door!  There aren't many requirements to become an insurance adjuster.  You just need to have a lot of common sense, a good work ethic and be willing to travel!

The first thing you'll need to do is become listed on an adjusting firm's roster.  To do this, you will most likely need to pass a brief exam (much like an online employment process for many retail stores).  You will also need to become certified and licensed to adjust.  Your independent firm will usually offer certification classes for you.  You may also need to pass a drug test (the independent adjusting firm will usually pay for this).  You also need to decide which firm you want to work for.  Depending on where you want to work can play a big role in this.  If you want to adjust part-time or locally only.  Then you may want to consider working for a smaller adjusting firm.  Smaller adjusting firms may be more flexible for you if you don't want to travel out of state to work.  Keep in mind, if you decide to work for a smaller firm, it doesn't guarantee you a "work from home" position.  You should always look at adjusting as a traveling profession; regardless of who you work for.  To find a local independent adjusting firm, utilize a search engine!  There are lots out there!  For a large list of independent firms/vendors you can visit the IA Employers Now Hiring page!

If you decide to work for one of the bigger adjusting firms, (these are the firms that adjust for the bigger insurance carriers and typically produce higher deployment opportunities) then here is a list of "the big four".

Worley Catastrophe Response

Eberl Claims Service

Pilot Catastrophe Services, INC.

E.A. Renfroe Catastrophe Claims Services

The most important thing for you to do is act!  If you are serious about entering this industry then you need to commit yourself to getting on a roster and receiving the necessary certifications/licenses so you can become eligible for deployment ASAP!  Educate yourself before you make your decision!  The biggest rookie mistake you can make is jumping in head first while biting off more than you can chew!  I see it happen all of the time to new adjusters!  There is a lot of opportunity and money to be made with this job!  But you need to understand everything that goes into this lifestyle before you commit yourself and quit your day job...  This is life changing income that can potentially change you and your family's life!  I have been very blessed and I want to pay it forward!  So please utilize this website to help you gain an understanding of what it takes to be a successful insurance claims professional!

Guaranteed SECRET way to get the Insurance Adjuster to pay for anything!

There isn't!  Everything is handled on a claim by claim basis.  It is based on an insurance adjuster's discretion and insurance carrier policy.  No two claims are alike.  So whenever you hear a contractor complain "You guys paid for this on another claim".  That's why...  Contracting and insurance adjusting are both very inconsistent industries.  Keep this in mind if you are creating estimates to send to the insurance companies for supplement approval.  The best way to get everything you are asking for is to ALWAYS act professional, kind, courteous and be fair.  The same can be said for the insurance adjuster.

I know many contractors who will ask for a full roof replacement, non-existing drip edge/gutter apron, the homeowner's air conditioner with the dog house roof and overhead & profit (O&P) all marked up to $45,000.00 for a 20 square, 3-tab roof.  These same contractors will act like stubborn 2 year olds when they don't get their way.  If you are going to ask for everything under the sun, then you need to act like a professional/reasonable person.

To O&P or not to O&P...

That is the question...

O&P stands for overhead and profit and is usually included into an insurance claim when a job warrants extra work/coordination of sub crews from a general contractor.  It is extra money allowance of 10% overhead and 10% profit added to the overall claim settlement amount (20% total).  The definition of overhead and profit inclusion is "Complexity of repairs or coordination of multiple trades".  There is a lot of controversy surrounding what warrants O&P into an insurance claim.  Arguments can easily be made on both sides of the fence.  But it all comes down to how well the insurance adjuster can justify O&P inclusion into his or her file notes.

Once upon a time, insurance companies used to automatically include O&P into a job when 3 or more different trades were present in the claim.  For example, if the roof was being replaced along with: an elevation of siding and interior drywall/paint repairs, then this job would quality for O&P for multiple trades (because there would be a total of 4 different trades in this example).  This type of job is also complex (as some of the trades are contingent upon each other), which is also another reason why O&P would be warranted.  However, it only takes a few bad eggs to spoil the batch for everyone... What insurance companies were finding is that some general contractors would purposely hire additional sub crews to perform miniscule/unnecessary tasks (such as hiring an HVAC tech solely to unhook the furnace cap during a roof replacement) or hiring a window installer to replace an exterior window screen, just so they could bill the insurance company for O&P.  It is for this reason, that most insurance companies will look for "complexity of repairs" as another area to consider O&P.

So how could an adjuster justify coordination of multiple trades properly in his or her file notes?  You could take the approach of:

"Overhead and profit is warranted on this job due to coordination of multiple trades and complexity of repairs.  This job has complexity due to the need to coordinate between the roofing, siding, drywall and painting subcontractors and the homeowner.  The painter cannot begin his work until the drywall subcontractor has finished his work and the mud is dry.  The drywall subcontractor cannot begin his work until the roofing subcontractor is finished with his work and the roof stops leaking.  All of this has to be coordinated with the homeowner’s schedule, as interior access will be necessary to complete the repairs; thus adding complexity to the job."

Feel free to paraphrase, but if you want to sound like a smarty pants and get management off of your back about your settlement decisions, then this example would be a good place to start in how you should structure your logic within a file note.  Of course your photographs should also support justification of overhead and profit as well.

What should I do if I am not sure if a claim warrants overhead and profit?

You should review any settlement/coverage questions with your manager.  But if your manager is not available and you are out in the field ready to make an on-site settlement then INCLUDE IT!  If you are on the fence and there is any question in your mind at all about including O&P into a claim; then just include it!

You are more likely to get in trouble for not paying O&P when it should have been warranted, than vice-versa.  There is an old saying that one of my old managers loved to throw around at the office "The tie goes to the runner!"  It is just good customer service to include O&P as much as you can justify it.  This will make the contractor happy, and in turn will make the homeowner happy; because that is just one less step that the homeowner will have to deal with.  Homeowners HATE having to ask the insurance company for supplemental payments!  The same cannot be said for the contractor ;)

Also think of it this way.  If overhead and profit is included in the claim that you are adjusting, then you have a greater chance for the claim to reach eligibility for percentage file billing.  Which is more money in your pocket!  Everyone loves more money! It's a win-win situation!  Just be sure you are not going crazy with it and that you can reasonably justify your thought process within your file notes.  Un-ethical billing on your files can lead to a quick release from the storm and a probable DNR or (do not rehire) black-listed to your employment.