Insurance Adjuster
What Is an Insurance Adjuster?
An adjuster, or claims adjuster, is an insurance professional who investigates and handles claims. They review and confirm what happened, what your policy covers (and excludes), and determine the appropriate payout amount.
In beauty and bodywork settings, that might involve investigating a stolen massage table, a water-damaged esthetics device, or an injury allegation tied to your services.
Types of adjusters:
- Staff adjuster: works for the insurer, also called company adjusters
- Independent adjuster: contracted by the insurer
- Public adjuster: hired by the policyholder to advocate for them
Who Does the Adjuster Work for?
Staff adjusters are employees who typically work for a specific insurance company. Independent adjusters are hired as independent contractors by various insurance companies on an as-needed basis.
Staff and independent adjusters both work for the insurance company. They’re responsible for evaluating your coverage and settlement based on your policy.
A public adjuster is an adjuster you, the policyholder, can hire to assist you with a claim. Public adjusters work for policyholders, and typically charge a fee or require a percentage of the claim settlement as payment.
What Does an Adjuster Look for and How Should I Prepare for a Claim?
Adjusters review everything that could be relevant to your claim, including things like:
- The cause of loss — what circumstances led to the injury, property damage, or property theft
- Your policy’s limits, deductible, and coverages
- Photos and videos
- Invoices and receipts
- Serial numbers, condition, and age of items for damaged business equipment claims
- Treatment notes when relevant for injury claims*
*If a client brings an injury or medical claim against you, the adjuster is typically required to speak only with the injured person directly about the details of their injury and treatment.
Your prep checklist:
- Your policy number and COI (Certificate of Insurance)
- Client, police, and incident reports if applicable (theft claims require a police report)
- Incident details for liability claims, including photos of the damage and scene
- Proof of ownership for equipment claims, like receipts, order confirmations, and serial numbers
- Current replacement price for comparable items (include the link or specific source of your information)
- Organize your files for easy navigation — fast responses to your adjuster’s questions keep your claim moving
How Do Adjusters Calculate Claim Payouts?
For property claims, items are commonly valued using Actual Cash Value (ACV): today’s replacement cost minus depreciation for age and condition. Some policies pay Replacement Cost (RCV) if your policy or an added endorsement provides it.
With replacement cost claims, many insurers pay the ACV first, then issue the remaining amount after you replace the item within a specific timeline. Your deductible is typically subtracted from the total settlement amount before the company issues a payment.
For example: Your claim settlement is $1,000 and you have a $200 deductible. Once the claim is finalized, the insurance company will issue payment to you for $1,000 – $200 = $800.
For liability claims, the adjuster evaluates relevant facts, coverages, and applicable policy limits to determine the best course of action.
How Long Does the Adjuster's Role in the Claims Process Take?
Timelines vary by claim type and documentation. A typical flow is: notice of loss → adjuster contact → information gathering → coverage decision → valuation and payment.
You can speed things up by sending complete documents upfront, replying promptly, and confirming the adjuster’s preferred document format (PDF, photos, or links).
Additional Resources
Related Terms
- Claims-Made Policy
- Coverage Details
- Deductible
- Exclusion
- Insurance Agent
- Insurance Claim
- Insurance Policy
- Occurrence Form Policy
- Qualifying Event
