How Much Can An Adjuster Earn Annually?

The subject of an insurance claims adjuster’s annual salary is of much interest; especially for those who are looking at prospects in the claims field.

Speculations by the general audience seem to have it both ways- some claim that being an insurance claims adjuster is like sitting on a gold mine without having to work for it. While others are of the opinion that being an adjuster means being stuck in a dead-end job with no growth.

Both these extremities are far from the truth but general belief tends to sway between the two.

According to Recruitment companies like Ziprecruiter and Indeed, the average salary for an adjuster ranges from $55,600 to $63,000 in a year, with the bottom 10 percent making around $37,000 and the top 10 percent going as high as $100,500. This makes for a highly significant disparity in income distribution.

Types of Adjusters:

Adjusters are usually of two types: Staff Adjusters and Independent Claims Adjusters. Staff adjusters are salaried employees of an insurance company and have a stable job. Independent adjusters, on the other hand, are independent workers who get contractual jobs from multiple adjusting firms. The difference between the two types results in different pay structures as well as differences in the kind of claims handled by the two.

The usual trend makes staff adjusters earn less than independent adjusters. With fixed salaries, the average income for a staff adjuster can range between $35,000 to $70,000, realistically. On the other hand, independent adjusters can earn a lot more, sometimes more than $100,000 a year, especially if they are handling catastrophe claims.

An independent adjuster handling catastrophe claims can receive a certain quote depending on the amount of the claim he/she is handling. For claims between $5000-$6000, they could receive a fee of $500. As the amount for the claim goes up, so does the commissioned fee for the adjuster. The adjuster usually gets 60–70% of the fee while the rest of it goes to the adjusting firm they liaison with.

Due to the commissioned nature of an independent adjuster’s work, the amount of money they make primarily depends on their ability to grab assignments. A good adjuster should be handling at least 3 claims per day and someone who is extremely good in their job could very well handle claims close to 5–7 in a day. Working with catastrophe claims, an adjuster usually pockets at least $1000 a day. A great adjuster can very well reach a six-figure income in about six months!

Despite the exciting pay and tremendous potential for employment, this is not the case all the time. Catastrophes don’t occur in large numbers and in certain periods in a year, lack of catastrophe claims makes it tough to find work and when it finally appears, the competition is severe.

Employment Statistics:

The U.S. Bureau of Labor Statistics (BLS) in a study claimed that adjusters would face slower than average employment outlook in the 2014–2024 decade. The overall job market is estimated to showcase a mere 3% growth. Most of the jobs would lie in the domain of health insurance.

The Way Forward:

For aspiring independent claims adjusters hoping to find their way into catastrophe or daily adjusting, a lot of necessary soft skills come into play. Besides obtaining licenses and passing exams, one needs to be a good communicator as well as a brilliant negotiator, especially during estimations. Another important trait to have is flexibility. Being an independent claims adjuster requires one to travel all around, particularly during catastrophe events. Claims assignments are distributed all across the country depending on where a catastrophe emerges and as independent adjusters, the ability to travel at a short notice certainly helps in grabbing more opportunities.

In cases like these, applications like JustEZ make an independent adjuster’s job a lot easier. From the onset, JustEZ assists an adjuster in the entire process of handling claims. From syncing claims, scheduling appointments for inspections, and building scoping reports, JustEZ serves as a platform for it all.

Conclusion:

Whether it is staff adjusting or independent claims adjusting, the industry offers a great career along with solid income for those who are passionate about adjusting and are hardworking.