What does the term “independent adjuster” refer to?

The term “independent adjuster” specifically refers to an adjuster who is contracted and not employed by any particular insurance company. This means that independent adjusters operate on a freelance basis, providing their services to various insurance companies as needed, rather than being tied to one specific insurer. This arrangement allows independent adjusters to bring a neutral perspective to claims evaluations, which can be especially beneficial during complex or contested claims.

In contrast, adjusters who work exclusively for one insurance company or are government employees have different roles and responsibilities that do not align with the independent status. Additionally, while some adjusters may focus solely on the evaluation of claims, this does not accurately define the independent adjuster's broader role, which encompasses the management and negotiation of claims as well. Thus, the correct understanding of "independent adjuster" is crucial in the context of the insurance industry to ensure clarity regarding the various types of adjusters and their functions.