AdjusterPro
Is Claims
Adjusting
for Me?
By Adam Gardiner
Co-Founder, AdjusterPro
A guide
to determining if a career
as a claims adjuster is a
good fit for you.
Over the last 10 years I’ve been fortunate to work with thousands of new
and aspiring adjusters to help them get ready for a successful career in
the claims business. In that time, I’ve learned a lot about who makes a
good adjuster and who doesn’t...and why.
I love this industry and I love helping new folks discover it. ​What follows
is meant to serve as a guide for you if you’re interested in becoming an
adjuster but don’t yet understand how the industry works and what the
opportunity truly is. I hope you’ll find it helpful and I’d be glad to hear
from you. Onward!
1
Stumbling
Into Adjusting
myStory
I stumbled accidentally into claims adjusting in 2004, when I
took a job as a salesman in Kentucky for my brother-in-law’s
roofing company following a major hailstorm. As part of my
job, I’d meet claims adjusters on damaged roofs. They had
been deployed to determine if the insurance company would
pay to replace the hail-damaged roof.
I was seriously intrigued by their job. Unlike my commissionbased pay, they got a direct deposit every two weeks. They
made way more than me, and the job actually looked fun.
I became a
believer when I
got my first paycheck for over
$14,700.
So I got myself an adjuster license and with new license in hand, I was
deployed to Hurricane Charley in 2004. It was total chaos. I put my nose to
the grindstone and worked harder than I had ever worked before. I became
a believer when I got my first full two-week paycheck for over $14,700. That
clinched it. I loved the job and I was making huge money. I had found my
niche.
Since that time, I’ve adjusted commercial claims, residential claims, CAT
claims, daily claims and liability claims. I’ve done file review, quality control,
dispute resolution, appraisal and mediation. I’ve managed adjusters and
I’ve run my own claims company. I currently co-own the largest and most
respected training company in the industry. I’ve trained literally thousands of
folks to get into adjusting, so I’ve learned a ton about this little-known niche
industry and how to get into it. Perhaps more importantly, I’ve learned quite
a bit about what kind of people do well in adjusting, who does not, and why.
To help you make an informed decision, I’ll answer the
following questions in this book:
1.
2.
3.
4.
5.
6.
2
Is adjusting a legitimate opportunity?
What is adjusting like?
How much does it pay?
What are the qualifications to get into adjusting?
Are there different career paths?
If it does fit me, how do I get started?
Is Adjusting a
Legit Opportunity?
In order to size up adjusting, first consider the insurance industry
itself. In the United States, our very way of life is underpinned by
insurance. Take for example, that people buy houses by borrowing
money from a bank. Banks offset the risk of lending money by
requiring the homeowner to purchase a policy that protects their
investment. Anyone who has let their homeowners policy lapse knows
that their mortgage company will immediately rectify the situation,
and the remedy is not pleasant. The same principle applies to almost
all property ownership: autos, businesses, boats, planes, etc., and the
same is true for liability insurance and workers’ comp.
Adjusting
is a whole
different
animal...
its actually
enjoyable.
This is all part of risk management. Whenever and wherever there is
“exposure” (the chance of loss), risk is transferred to the insurance
company in exchange for premiums.
The bottom line is that insurance is here to stay, and it’s big business.
This is good news for folks interested in claims, because as long as
there is insurance, there will be claims.
Adjusters are the folks who investigate the loss when a claim is filed.
If a tree falls on your house during a winter storm, you would call your
insurance company and they would send out an adjuster to determine
if the loss is covered by the policy and if so how much needs to be
paid and to whom. Similarly, if you get into a car accident, it will be an
adjuster who comes to investigate the damage, including injuries to
people and damage to property.
Not to insult other insurance related jobs, but they all seem boring or
distasteful to me. Adjusting is a whole different animal; it’s actually
enjoyable. There’s a flexible mix of office and field work, there’s
endless room for growth, and you constantly deal with people. The
icing on the cake for me, though, is how much money adjusters can
make.
3
What Is Independent
Adjusting?
Managing
the ebb and
flow of claims
volume has
created a multibillion dollar
industry called
independent
claims
adjusting.
4
Insurance companies profit by collecting more in premiums than they
are paying out in claims. They know that there will be spikes and dips
in claim volume, and set policy premiums accordingly. For example,
a large insurance company might expect 30,000 claims to be filed in
Galveston, Texas during a normal year, but they realize that number
could spike to 130,000 if a hurricane hits. Claims fluctuate throughout
a normal year, too; ice storms may spike claims during the winter in
New Hampshire, while heat waves may spike claims in Arizona during
the summer.
This fluctuation in the number of claims presents a staffing dilemma
for insurance companies.
1. If they keep enough adjusters on the payroll to handle any
contingency, they’d be overstaffed 90% of the time, decreasing
their profitability.
2. On the other hand, if they keep only a skeleton crew, the delay
caused by trying to staff after a large spike would be disastrous
for insurance companies. There are strict laws, steep fines and
public relations problems if claims are not handled on time,
and it is difficult to hire qualified adjusters on short notice.
Managing the ebb and flow of claims volume has created a multibillion dollar industry called independent claims adjusting. Insurance
companies outsource this employment problem to IA firms
(Independent Adjusting firms) who handle the overflow claims volume.
This has created two distinct career paths; working for an insurance
company as a staff adjuster or working for an IA firm as an
independent adjuster. Additionally, within each path, there are a wide
variety of claim careers to choose from. Some positions are more
stable jobs with salaries but lower pay, and others have more volatility
but higher pay. Some are your basic 9 to 5 office jobs; others are more
like a military deployment.
Getting into Different
Kinds of Claims Jobs
Getting into claims has two distinct paths. Starting a career as a staff adjuster
(an employee of an insurance company) is an established process of applying
directly to an insurance company through advertised job openings. Larger
insurance companies typically require a four-year college degree. There is not
much I can do to illuminate this well-established process.
Significant
changes have
taken place in
the business
which is good
news for new
independent
adjusters.
Getting into independent claims adjusting, on the other hand, is not as
straight forward. Traditionally, it has been very difficult to break into. It is a
little known industry that has functioned for years through word-of-mouth
referral; you had to know someone to get in. Additionally, it requires a
high level of training and professionalism, but candidates were somehow
expected to get qualified before they started working. Many an interested
candidate has been discouraged by the “minimum three year experience”
qualification listed on IA firms’ application page.
Thankfully, over the past decade a number of significant changes have taken
place in the independent claims business. The old word-of-mouth model
caused a lot of problems, including a shortage of qualified adjusters. This
problem has only gotten worse over the last few years. To fix the broken
business model, insurance companies and IA firms have utilized everimproving technology to make the claims process more “virtual.” The changes
in effect are good news for new independent adjusters in two primary ways.
First, whenever there is change, there is opportunity. These changes have
created a bounty of entry-level positions for new hires. The industry is
actively trying to fill them as you are reading this. Second, these positions
do not require nearly the level of training demanded in the past. They focus
on part of the full process of adjusting, and include on-the-job training that
prepares employees to handle additional responsibilities as they learn.
So instead of having to jump into the deep end with the “sink-or-swim”
approach, new hires are given more limited tasks that are expanded over
time, eventually leading to full-fledged independent claims adjusting.
Ready to get started? Visit www.adjusterpro.com.
5
How Much Does
Adjusting Pay?
When I last
worked as a
catastrophe
adjuster, I
closed an
average of five
claims per day
at an average of
$405 per claim.
6
Claims adjusting is a great paying career, and one of the primary
reasons folks are interested in it is the pay. Staff adjusters, on average,
make less than independent adjusters. Our latest data from the Bureau
of Labor and Statistics shows that the average salary for a staff adjuster
is around $60,000, while independent adjusters can average much
higher depending on deployments and catastophes in any given year.
It is very realistic to expect a six-figure income within a reasonable
period of time. Staff adjusters are paid as salaried employees, and
positions can include benefits such as health insurance, paid vacations
and company-provided equipment. While staff adjusters often have
better benefits and job security, there is a trade-off. There is less
flexibility and more managerial control and oversight. Independent
contractors can expect to make more but also to shoulder more of the
responsibility of managing their own income. They also must work to
earn job security by continually performing well.
For example, when I worked as a catastrophe adjuster (“CAT adjuster”),
on average I could close five hurricane claims per day, with an average
payment of $405 a day on my last eight month deployment. And this is
not unusual. I know adjusters who are much more efficient than I was,
closing quite a few more per day than I did.
Independent adjusters are paid in different ways. Through the main
part of a deployment I was paid according to a fee schedule (see left)
picture below).
The more claims I closed and the larger the claim, the more I made.
As the storm wound down, I would stay on the “clean up crew.” This
meant transferring to a “daily rate” (some fixed amount, typically
between $500 and $1,200 per day). I would not be required to handle
as many claims, but I had to deal with more re-opened, problematic
claims which I really enjoyed.
How Much Does
Adjusting Pay?
(Cont.)
Over time I transitioned from CAT claims to “daily claims.” These are claims
filed by policyholders for normal day-to-day losses. As a property claims
adjuster, I handled claims on buildings. These included pipe leaks, tub
overflows, kitchen fires and any other scenario you could imagine. As a daily
claims adjuster, I was paid “T&E” (time and expense). I would keep track of
my time, and then bill the
IA firm anywhere from $35
an hour to $125 an hour,
depending on my duties (see
below examples of my time
sheet and invoice).
Some companies pay
according to components.
Take a hail loss for example;
there is a flat fee for adjusting
a roof, an additional fee for
siding damage, and again
for fence, deck or interior
damage, and so on. All
methods are an attempt to
pay fairly according to the
amount of time and knowhow it requires to complete
the claim.
7
What Are the Qualifications
for Getting into Independent
Claims Adjusting?
If you want to pursue a career in independent adjusting, you should
know that there are hard and soft qualifications.
Hard qualifications include such things as being over 18 years old,
holding an adjuster’s license in your state of residence (or having a
designated home state license if you do not live in a licensing state),
having a clean criminal record, passing a drug test and maintaining a
valid driver’s license.
First and
foremost,
successful
adjusters
possess
a solid
character.
Additionally, there are professional skills that must be mastered. You
must have the capacity to understand insurance policies, work well with
computers, conquer estimating software such as Xactimate, and pass
the industry certifications required by the IA firm you choose to work for
(the State Farm certification, for example). All of the above are minimum
entry requirements. The soft skills separate successful adjusters from
mediocre ones.
First and foremost, successful adjusters possess a solid character. This is
not a career for shady characters; they are quickly weeded out because
insurance companies require a high level of integrity. Moreover, hours
can be long; above-average work ethic is a must. Going above and
beyond is expected.
Following very close behind is the ability to communicate well with
others, both in writing and verbally. You must understand that this
business is about customer service, and you are often required to
communicate effectively with folks who are in a high state of stress. An
inability to follow through, easily losing your temper or being unable to
read people well will severely limit your career. Modern claims handling
is as much about customer and manager satisfaction as it is about being
proficient in the technical aspects of the job.
To put it bluntly, employers are looking for candidates with both the hard
skills and the soft skills. If this describes you, I can assure you that you
will do well in the claims industry.
8
Will I Be at a Desk
or Climbing Roofs?
Thankfully, the claims business is a merit-based industry, with a wide
variety of entry-level positions and an almost endless number of career
advancement paths. This means employment opportunities regardless
of your age, race, gender, physical ability or professional background.
For example, if you prefer to be behind a desk because of physical
ability or just because of personal preference, changes in the industry
have opened a huge number of desk-adjusting positions. These desk
jobs usually pay between $25-50 an hour, and require lots of overtime.
Usually there is a ton of on-the-job training, and lots of different types
of claims come across your desk. The result is a firm base of experience
and understanding of the claims business. Success in these positions
can lead to in-field claims handling for those desiring this career path.
While desk adjusters handle claims over the phone, field adjusters
physically visit the loss and interview people in person.
The claims
business
offers an
almost
endless
number of
career paths.
Both desk adjusters and field adjusters handle claims of all kinds;
houses, commercial buildings, automobiles, liability, workers’
compensation, aviation, marine and more. Often, adjusters will
develop specialties in certain types of claims. I’ve met very successful
adjusters who specialize in circular saw claims, for example, and others
who have followed their love of airplanes into a career in aviation
claims.
Personally, I enjoyed and therefore developed my skills in dispute
resolution, which brought me lots of work in mediation and appraisal.
Commonly, in the beginning of an adjusting career, you take available
assignments, regardless of the type. Although this keeps you on your
toes, it also firmly establishes you as a valuable asset, someone who
can tackle anything thrown at you.
Ready to get started? Visit www.adjusterpro.com.
9
CAT Adjusting
Catastrophe adjusting is very attractive to many people. I’ve ‘retired’
to teaching, but I loved CAT adjusting personally. It’s exciting and
lucrative.
There are pluses and minuses about CAT adjusting. Obviously, a
significant drawback is that the work is sporadic; no catastrophe, no
work. However, non-adjusters might assume that the only catastrophes
that happen are the ones that make the news. This is not so.
Hailstorms, floods, fires, minor earthquakes, tornadoes, winter storms
and more happen all year round. CAT adjusters handle these losses.
The more you prove your competence as an independent adjuster,
the more often you’ll be deployed to these “choice” assignments. This
means is that if you’re good, you get to deploy all the time if you wish.
If you manage
your money well,
expect downtime with your
family, occasional
high intensity
deployments, and
a very comfortable
living.
On the plus side, CAT adjusting is high-energy, challenging and very
lucrative. It is also not for the dabbler or overly dependent person.
Successful CAT adjusting requires a lot of self-management. Mastery
of the claims process, including knowledge of local laws and statutes,
constant work on efficiency, and effective communication are a must.
A CAT adjuster typically fronts all of his or her expenses, including
equipment, travel, transportation and lodging. Discipline with finances
is required; if you fail to budget your money well to manage the ebbs
and flows of the work volume, the job will burn you out. If you do
manage your money well, expect extended vacations and down-time
with your family, occasional high-intensity deployments and a very
comfortable living.
In today’s independent environment, CAT adjusting will most probably
mean a mixture of handling CAT claims both from a desk and in-field,
depending on the deployment. Successful CAT adjusters say “yes” to
either, even if some deployments pay less than others. Because that’s
what successful claims adjusters do; they become the go-to solution
for their employer.
Want to learn more about the claims industry?
Visit The AdjusterPro Blog.
10
Getting Started
Daily Claims
Getting into daily claims has traditionally been something adjusters do after
they’ve gained experience in the field as a CAT adjuster or as a staff adjuster.
Today, all that has changed. The industry has opened daily claims positions that
begin in “hubs,” handling daily claims as desk adjusters. These hubs are in many
major metropolitan areas, and smaller branches are located throughout the
United States. Under the new arrangement, adjusters working desk claims are
typically compensated from $25-50 an hour, with lots of opportunity to make
overtime. In fact, overtime is often expected; 10-hour days are common, as are 6
day work-weeks. Obviously, this is not for the faint of heart, but this is true for all
claims work. You truly get out of it what you put into it, and there is little room for
just doing the minimum.
Okay, this Sounds Interesting. How Do I Get Started?
If adjusting sounds attractive to you and you have the capacity to gain the hard
and soft qualifications, it’s time to get started. Remember, solid character traits,
good people skills and a great work ethic are indispensable!
The first
step to
becoming
an adjuster
is to secure
your
adjuster’s
license.
I like to compare preparing for adjusting as a career to building a house. The
foundation comes first, then the framing, then drywall, roof, etc. In preparing to be
an adjuster, you should first obtain your license, then begin to master the software
and knowledge absolutely necessary to the job, and finally you should continue to
expand your eligibility by obtaining additional certifications, skills and knowledge.
Getting Licensed
Most states require a license to work as an adjuster. If you live in a state that
requires licensing, you must obtain your home state’s license. If you live in a state
that does not require licensing, you need to hold a designated home state license,
or DHS to work for almost any carrier or IA Firm. For more on designating a home
state, see our blog article here.
Depending on the state, AdjusterPro offers pre-licensing or exam prep courses.
A pre-licensing course qualifies you to apply for your state license – and it
dramatically increases your chance of passing the state exam. What’s more, you
can take your pre-licensing course easily online. Employers make no distinction
whatsoever between a license obtained through an online class or a live class.
AdjusterPro is, by far, the most trusted source for obtaining your license. The
certificate you print at the completion of your course will be included in your
application to the state.
11
You should plan on 40 hours to complete your pre-licensing course. When you
submit your application to the state, expect to pay between $50 and $150,
depending on the state. How long the application process takes differs from stateto-state also; some states are backlogged, so be prepared to wait from two up to
ten weeks.
Software Training
The days of adjusters hand writing claims on paper forms are long
gone. Everything is computer-based now. You will need to learn an
estimating software, and by far the most widely used software is
Xactimate. Unless you already have a job lined up with a company
that does not use it, you should learn and master Xactimate, because
this will give you the widest possible employment opportunity. Other
software platforms can be added to your repertoire later as needed.
Expect to spend a significant amount of time learning and practicing
on Xactimate. Our live, instructor-led classes are 100% online, and
supremely effective, even for a beginner. This means you can learn it
on your own computer in the comfort of your own home, ask all the
questions you want, and ramp up quickly.
AdjusterPro’s live,
instructor-led
Xactimate classes
are 100% online,
and supremely
effective.
We will help you get set up with a 30-day free demo of Xactimate
that you can use during training. Xactware will extend your 30-days
if you call in and request an extension, but 30 days should suffice if
you practice. When you go to work, your employer may absorb the
cost of your Xactimate subscription, depending on the employer and
the assignment. If you have to cover the cost, expect to pay in the
neighborhood of $1,600 per year. This may seem like a lot of money,
but you’ll make enough to cover the entire year very quickly with your
first assignment as an adjuster.
In addition to Xactimate, you will need to master your employer’s
software systems. The only sure-fire way to do this is to start working;
they’ll provide on-the-job training. It can be a lot to digest in a very
short period of time, but you will be an old pro after a couple of weeks
of diligent work.
Have questions? Email us at [email protected].
12
Additional Training
One interesting development in the current claims environment is
that you may not know ahead of time what kind of claims you will be
assigned on your first deployment. This can make it tricky to pinpoint
exactly what to study first. For example, you may not know if you will
be assigned auto claims or property claims. The good news is that
current entry-level positions typically limit you to a specific part of
the claims process, which has the effect of letting you learn in smaller
“bites” as you get trained in additional areas.
I have found that
the folks who
really do well in
this business are
intelligently and
systematically
adding
qualifications to
their resume.
Does this mean all you need is a license and Xactimate training? By no
means. You should begin immediately to expand your qualifications
by adding professional certifications, additional training on how to
adjust claims, and additional state licenses. I have found that the folks
who really do well in this business are intelligently and systematically
adding qualifications to their resume that make them progressively
more deployable.
For example; you’ll never work State Farm claims without a State
Farm certification. You can’t work claims in Bismarck, NY without a
New York license (even if you’re at a desk in Phoenix, AZ). You can’t
do claims with steep roofs without a Rope Access certification, and so
on. Getting a handle on what employers are looking for and adding
additional qualifications to your resume in a prioritized, systematic way
is what you need to do.
AdjusterPro’s specialty is giving you the help and direction you need as
you work to improve yourself and your qualifications. We’ll help you
build a plan and be ready for what you need to focus on next.
Ready to get started? Visit www.adjusterpro.com.
13
Getting Your First
Job
Having helped literally thousands of folks break into the claims
industry, we’ve gained years of insight into how to start. We offer
some great video-based resources that will walk you step by
step through the process, from getting licensed to the successful
completion of your first deployment. Becoming an adjuster is an
important step to take, and AdjusterPro offers everything you will
need in an easy to use, online format, including downloadable
resume templates and more.
Conclusion
If you are serious
about making a
career in claims
adjusting, there
has never been a
better time.
Insurance adjusting is a rewarding, high-paying
industry, but it’s not for everyone. If you are
serious about making a career in claims adjusting,
however, there has never been a better time.
Industry-wide changes have opened the door
to new hires, and the initial investment to get
licensed and trained is minimal compared to the
level of pay in the industry. I encourage you to
think it over carefully, make sure you are willing
to jump in whole-heartedly, and then contact us
when you are ready!
www.adjusterpro.com
14