What is the definition of a public adjuster in insurance?
Short answer. In insurance, a public adjuster is a licensed person who, for compensation, acts on behalf of the policyholder to prepare, present and negotiate a first party property claim with the policyholder's own insurer. The key words are "for compensation" and "on behalf of the insured": they are paid by you, they work for you, and they handle claims on your own policy.
The definition, piece by piece
- Licensed. States license public adjusters separately from agents and from the adjusters insurers hire. In Georgia the license comes from the Commissioner of Insurance, and the contract form must be approved by the Commissioner.
- For compensation. The fee is usually a percentage of what the insurer pays. A relative who helps you for free is not acting as a public adjuster.
- On behalf of the insured. The duty runs to you, the policyholder, not to the insurer.
- First party property claim. A claim on your own homeowners or commercial property policy for damage to your building or belongings. Public adjusters do not handle injury claims or claims against someone else's insurer.
What the definition leaves out
A public adjuster cannot decide coverage; only the insurer, an appraisal panel or a court settles what is owed. They are not attorneys, so they cannot sue for you or give legal advice. And a roofing contractor is not a public adjuster: in Georgia a contractor may not negotiate your claim for you, though it can document damage and submit its own estimate and supplements.
Related terms
- Company adjuster: the insurer's employee or hired independent adjuster. See what roof adjusters look for.
- Appraiser: chosen by each side under the policy's appraisal clause to settle a dispute about the amount of loss.
- Umpire: the neutral who decides when the two appraisers disagree.
- Proof of loss: a sworn statement of the amount claimed, which a public adjuster often prepares.