Glossary

Public adjuster

A state-licensed professional hired by the policyholder, usually for a share of the recovery, to document, present and negotiate a property claim.

Also called: PA, public insurance adjuster, claim consultant

A public adjuster works for the policyholder, not the insurer. States license them, and they handle first-party property claims: fire, wind, water and the business income that follows. The work includes inventorying damage, preparing the estimate and the proof of loss, calculating lost income, and negotiating with the insurer's adjuster.

Do not confuse the three kinds of adjuster. A company adjuster is the insurer's employee. An independent adjuster is a contractor the insurer hires. A public adjuster is hired and paid by you. Public adjusters are not attorneys and cannot give legal advice or file suit, so a denied claim or a bad faith question belongs with a lawyer.

Payment is typically a contingency percentage of what the insurer pays, set in a written contract. Some states, Florida among them, cap the percentage by statute, and rules about contracts, cancellation rights and solicitation after a disaster vary by state. Say a business gets a $200,000 settlement offer, and a public adjuster negotiates it to $260,000. The fee comes from the amount recovered, so the benefit is real only if the adjuster raises the payment by more than the fee.

They earn their keep on large, complex or disputed losses, and on business income calculations. For a small, clear claim, the fee may not be worth it. Check the license with the state insurance department, read the contract, and see the guide on public adjusters: when to hire one for a business property claim for when to hire one.

Last reviewed October 10, 2026

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Related terms

Proof of loss A signed, sworn statement detailing a property loss and the amount claimed, which the policyholder gives the insurer within a set period after it asks. Appraisal A property policy procedure for settling a dispute over the dollar amount of a loss, using two appraisers and an umpire instead of a lawsuit. Notice of claim The report a policyholder must give an insurer about a loss, claim or lawsuit. The policy sets the timing, and late notice can put coverage at risk. Replacement cost A valuation basis that pays the cost to repair or replace damaged property with like kind and quality, without deducting for depreciation. Business income Property coverage that replaces net income and continuing operating expenses, including payroll, while a covered physical loss suspends operations.

Related guides

How AI is changing commercial claims handling Where insurers use AI in commercial claims, what regulators expect from human review, and how to document and escalate a claim when software is involved. The appraisal clause in commercial property disputes How the appraisal clause settles disagreements over the amount of a property or income loss, what it cannot decide, and Texas and Florida rulings on causation. Careers in commercial insurance: underwriter, broker, adjuster What underwriters, brokers, adjusters, actuaries and loss control specialists do, how each path starts, and what BLS data (May 2025) says about pay and outlook. Insurance designations: CPCU, ARM, CIC and more What CPCU, ARM, AIC, AU, CIC, CISR and CRM require, who each suits, and how a designation differs from a state license. Checked against the providers in 2026. Public adjusters: when to hire one for a business property claim What a public adjuster does, how they are paid, state fee caps and licensing rules, and when hiring one for a large or disputed commercial claim pays off. The sworn proof of loss: what it is, when it's due and how to prepare it A sworn proof of loss is your signed statement of the amount you claim. The 60-day clock in the standard property form, what goes in it and what to avoid.

Related tools

Business insurance claim checklist Ordered claim steps for property, liability, auto, workers' comp, cyber and crime losses, with one place for incident notes to print, download or save.