What differentiates a public adjuster from an independent adjuster?

The distinction between a public adjuster and an independent adjuster lies in their representation and the relationships they maintain during the claims process. Public adjusters work exclusively on behalf of policyholders, advocating for the interests of the individuals or businesses that hold insurance policies. Their role involves assessing damages, preparing claims, and negotiating with the insurance company to ensure that policyholders receive a fair settlement.

On the other hand, independent adjusters are typically engaged by insurance companies to assist in the claims process. They evaluate claims and determine payouts from the insurer's perspective, which means their primary obligation is to the insurance company rather than to the policyholders. This crucial difference highlights why the correct answer focuses on the representation aspect, clearly identifying who each type of adjuster serves.

This distinction is essential for anyone involved in the insurance field, as it informs the various roles and responsibilities inherent to both public and independent adjusters.