Public Adjuster
A licensed claims professional retained by and exclusively representing the policyholder's interests in negotiating a property or casualty claim settlement.
industryPublished 2026/06/07Last verified 2026/06/07
FAQs
- Who pays the public adjuster?
- The policyholder pays the public adjuster, typically as a percentage of the insurance settlement — often 5% to 15%. Many states regulate or cap these contingency fees.
- Can a carrier refuse to deal with a public adjuster?
- No. Policyholders have the right to representation. However, the carrier deals with the public adjuster as the policyholder's authorized representative, and the policy's cooperation clause still obligates the named insured to participate directly in some instances, such as examinations under oath.
- Does hiring a public adjuster always result in a larger settlement?
- Not necessarily, though industry studies suggest PA-represented claims often settle for more than those handled directly. However, the PA's contingency fee reduces the net recovery to the policyholder, and not all claims benefit from professional representation.
Related Terms
Independent Adjuster
A claims professional working as an independent contractor hired by insurers on a fee or per-claim basis to investigate, evaluate, and settle claims.
Staff Adjuster
An insurance carrier or TPA employee who handles claims internally as part of the company's permanent claims department.
Litigation Management
The carrier's structured process for controlling legal defense costs, outcomes, and strategies on claims that have entered the court system.
SIU Referral
The process of routing a suspicious claim to the Special Investigations Unit for investigation of potential fraud before settlement.