However, being a claims adjuster can be a highly rewarding role for the right person. According to Payscale, insurance claims adjusters enjoy their work and report high levels of job satisfaction. In general, there are two types of adjusters, and this influences how each person experiences their job:

1. A staff adjuster:  Someone who works for the insurance company that will pay the claim, a third-party administrator or self-insured company.
2. An independent claims adjuster:  A contractor who works independently but is hired by insurance companies, third-party administrators or self-insureds to settle claims.

Related: Insurance agents are retiring. Can millennials fill the void?

There are pros and cons to being a staff or an independent adjuster. IAs have a little more flexibility in scheduling. (Photo: Shutterstock)

Staff or independent adjuster?

While larger insurance companies typically have claims adjusters on staff, smaller insurers or companies that do not have a physical location in a state where they offer insurance often rely on independent adjusters. Each of these arrangements has pros and cons, and it is best to weigh each before deciding what is best for you.

Benefits of being a staff claims adjuster:

• You enjoy a steady pay check that does not fluctuate from month to month.
• You enjoy employment benefits like health insurance, dental coverage, paid vacation and company contributions towards your retirement (401K) plan.
• You work a fixed number of hours per week.
•  You undergo training and professional development paid for by the company.
• Company-issued laptops and possibility of a company car.
• Errors and Omissions coverage.

However, there are cons and these include:

• Less money than the independent claims adjuster in the long run.
• Less flexibility in your time and the type of assignment you accept.
• Lots of overtime work and short vacation allotted.
• College degree typically required.

Working as an independent claims adjuster also has its benefits and these include:

• Freedom to choose who to work for and the kind of assignment or location.
• Earning more income than a staff adjuster based on fee schedules.
• Freedom to work from home or elsewhere.
• More down time for vacations between assignments.
• More employment options since adjusting firms do not require college degrees but often hire based on experience and training.

The cons include:

• Lack of stability in working hours. Sometimes there will be lots of work, while other times will be slow.
• No benefits. Your health insurance and 401K are your responsibility
• You pay for your own computers and other required equipment. This may include your transportation costs and maintenance of your own vehicle.
• You pay your own E&O policy. 

Related: Tips for identifying and hiring top insurance professionals

The latest Claims magazine salary survey finds that most adjusters work more than 40 hours per week. (Photo: Shutterstock)

Does insurance pay well?

Pay for insurance claims adjusters averages $51, 000 per annum. According to Payscale, when bonuses of around $7,000 are added in together with profit-sharing proceeds where available, total income for staff adjusters will range from $34,000 to $74,000, depending on performance.

While actual verified incomes of independent claims adjusters is more difficulty to obtain, it is generally said to range between the $85,000 to six figures, with salaries as high as $300,000 quoted.

Different states have different licensing requirements for insurance adjusters, so be sure to familiarize yourself with what's required in your state.

Frank Medina, the principal of Frank Medina Insurance has worked as both a staff claims adjuster and as an independent claims adjuster throughout his insurance career. Contact him at [email protected]. Opinions expressed are the author's own.

Related: Here are the results of the 2016 Claims Salary Survey