by honestr » Mon Jan 14, 2008 03:38 am
Can anyone out there tell me how claims adjusters are paid? Are they on a salary, paid by the hour or paid a percentage of the claim they adjusted or a combination of the said above?
Posted: Tue Jan 15, 2008 01:28 am Post Subject:
now i understand a little better. my former boss managed the restoration business and owned the painting business. he subtraded all the painting drywalling and insulating from the restoration company to his painting company. his painting business which actually employed only 2 painters was grossing $500,000 a yr.
Posted: Tue Jan 15, 2008 12:36 pm Post Subject:
It's a terrible risk that any ins carrier takes when they let a third party vendor 'do their job' meaning, just flat accepting, (and paying) estimates for repair without going over them with a fine toothed comb, and 'adjusting' the claim (where need be)...or minimally random audits for pete's sake! I know there are good resto companies out there, but greed takes a hold of some, especially if some company is fool enough to give them a blank check!....yet another reason our rates are thru the roof...
I've never heard of an independent adjuster being paid on commision, based on the settlement amount (and I really doubt this is the case).
Tcope, dude, I wish you wouldn't put it that way, it sounds like you think I'm fibbing :( Not that I can't be wrong, (I am daily, I try to learn something new daily)....There are some independent adjusting companies that pay a percentage or commission, (couple of items I pulled from different company/edu/government sites below, and there are many many more) What you have to remember is the independent isn't usually 'paying' the claim, (in most cases)...the 'supervising adjuster' is, therefore has total control of the payment amount, and (should at least) reviews the estimates/appraisals, settlement offers etc....I've never worked for an independent adjusting company, I have however been offered jobs from three different ones, thereby knowing how they paid, (one was commission other two were 'by the sheet' kind of pay) and have 'hired' them and been the supervising adjuster many many times over the years..we know for sure a public adjuster is paid by commission percentage/contengency basis as well right, (in most instances)?
What types of pay scale are available?
(adjuster education)Generally two types... Fee schedule and a flat daily rate. Fee schedules pay a percentage of the claim, whereas daily rate pay is based on just that, a flat daily rate. Some companies offer both, while others offer one or the other. This is something each adjuster needs to consider before deployment!
Competitive commission structures Payroll Every 2 weeks
(U.S. Staffing Adjusting Services)Liability (E&O) policy Workers' Compensation policies.
An independent adjuster will typically be paid on a per claim basis with the amount paid being a relative percentage of the settlement amount. This is known as a fee schedule
(adjuster pro)
ok one more from the US dept of labor
Claims adjusters and appraisers working for insurance companies tend to earn slightly higher average earnings than independent adjusters because they have a steady income. Independent adjusters receive a percentage of the insurance company's settlement with its clients
I understand they don't all pay that way and perhaps some states have laws/regulations prohibiting it, but some do tcope... :wink:
Posted: Wed Jan 16, 2008 12:48 am Post Subject:
please tell me the difference between claims adjusters and an appraiser as the firm i worked for had 3 office people who called themselves appraisers? do you have to have any kind of certificate to be an appraiser because these 3 had no certificates and no training and that i am positive of. and lori i made a mistake when i said the insurance company was state farm. it was actually pilot insurance. three jobs prior to my being fired i was sent to paint a residence that had a chimney fire and no cleaners were sent prior to me painting the home. this homeowner has filed a lawsuit as his house smells like smoke and the smoke has bled through the paint job. i'm not sure if the lawsuit includes the insurance company which is allstate, but it does name the restoration firm and the painting firm. naturally i'm a witness for the complaintant and i do hope they DON'T settle out of court because i would like as many people possible to know how this firm operates. and from the information lori supplied independant adjusters can be tempted to inflate the claim so they make more money. question for lori, how can i tell who is independent adjuster and who isn't. hope that isn't a silly question as there is 5 or 6 adjusters involved and iknow of only 2 that work for crawfords. lori i know for a fact this certain adjuster is dirty and get this, he was at that time the president of the ontario insurance adjusters association. the adjuster that i mentioned that would'nt go look at the clients house when i told her it had never been cleaned was the president of one of the branches of the o.i.a.a. this site has been very beneficial to me and i will continue to try and get these people held accountable.
Posted: Wed Jan 16, 2008 08:26 am Post Subject:
Hi honestr, as far my knowledge goes appraisers are the evaluators of the property value whereas an adjuster evaluates the worth of damages.
Posted: Wed Jan 16, 2008 09:58 am Post Subject:
question for lori, how can i tell who is independent adjuster and who isn't
An independent does not work exclusively for one company like, state farm, allstate, etc...instead they work for a company like, GAB, Crawford, Frontier etc, I guess they only way to really know is to ask them who do you work for? If it's the company that pays the bill (actual insuring company) then they are not independent.please tell me the difference between an adjuster and an appraiser
An adjuster can also be an appraiser, an appraiser does just that appraises damage, an adjuster would also investigate claims, coverage etc...not only appraise whatever damage there is.do you have to have any kind of certificate to be an appraiser
no not necessarily. But you would need to know your topic (be it auto damage, carpentry, restoration etc). Some states may require cerification.lori i know for a fact this certain adjuster is dirty and get this, he was at that time the president of the ontario insurance adjusters association
I don't doubt it...Perhaps you could let the steering committee of this organization know about him...be sure you have proof (don't want a slander suit).I appreciate your passion for truth and fairness...
Posted: Wed Jan 16, 2008 04:57 pm Post Subject:
Hi honestr, as far my knowledge goes appraisers are the evaluators of the property value whereas an adjuster evaluates the worth of damages.
... and some are both. Most of the larger/national companies split the claim in some way, usually the property damage goes to one person and liability and any injury goes to another.Posted: Wed Jan 16, 2008 05:04 pm Post Subject:
I'm betting that it's independent property adjusterswho are paid based on the amount of the claim, as this makes sense. The larger the loss, the more work required and the more expertise is needed. But I doubt independent liability/injury adjusters are paid by commission. As an independent, that is what I did... investigated liability and settled GL/auto PD and injuries. This was needed as many companies did not have a presence in Florida and Florida requires an adjuster to have a license to adjust claims. But I'd also negotiate and settle BI claims all the time. That is, the carrier would give me an upper limit and I'd try to settle. If I were paid a commission based on the amount of the settlement, me thinks I'd always settle for top dollar (and I'd have a bigger bank account right now).
(that is what I meant by "doubt"... as an adjuster we know there are two sides to every story :) )
Posted: Thu Jan 17, 2008 10:34 am Post Subject:
I'm betting that it's independent property adjusterswho are paid based on the amount of the claim, as this makes sense.
I'm sure that's the case as well.....that is what I meant by "doubt"... as an adjuster we know there are two sides to every story )
Yeah, no harm/foul...I would be surprised, not shocked (about much anymore :roll: ) if ''BI'' independents got commission,If I were paid a commission based on the amount of the settlement, me thinks I'd always settle for top dollar (and I'd have a bigger bank account right now).
:D , as you say what would your incentive be to settle under the limit the adjuster gave you!Posted: Thu Jan 31, 2008 05:52 pm Post Subject: This is a crime, so the adjuster can make an extra dime !!
My insurance company hired an independent adjuster company to come for my flooded bathroom and kitchen. She came out before the restoration company was finished tearing up the house and is now trying to say that the leak in the wall behind the toilet that caused the flood is a second claim. We haven't yet found out WHY the toilet overflooded and it is expected that something is wrong with the pipes in the wall. This is the SAME wall that the shower in the other bath is connected to, and this wall is or has been wet and is now molding. My house is torn up and nobody can begin repairs until this shower is taken out .. but the adjuster is saying that it needs to be a second claim. I am certain she is doing this to benefit her income even though my home is a mess and torn all apart while my bathroom continues to rot away.
Posted: Fri May 08, 2009 07:18 pm Post Subject: Your topic
Honest you should watch what you type before you get slapped with a slander suit.
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