Category: Loss adjusting · Reviewed by Jake Leat, Associate Director · Last reviewed 2026-06-11
An independent loss adjuster is a loss adjuster who is instructed on a case-by-case basis to investigate and report on an insurance claim, rather than handling claims under a standing panel or delegated authority arrangement.
Category: Loss adjusting Also known as: Independent adjuster, Non-panel loss adjuster, Instructed adjuster Related concepts: Loss adjuster, Insurer’s panel adjuster, Chartered Loss Adjuster, Lloyd’s of London
An independent loss adjuster is a loss adjuster who is engaged by an insurer or by the Lloyd’s market on a specific instructed basis to investigate and report on a particular claim, rather than being part of a standing panel of adjusters with continuous workflow and possibly delegated authority. The term “independent” reflects two distinct concepts: independence from any single insurer’s standing arrangements, and the impartial professional independence required of all loss adjusters by the CILA Code of Conduct.
Independent adjusters are typically chosen for their specific expertise on the particular claim. Insurers will often go outside their panel where a claim requires technical knowledge not held by their panel firms — for example, a specialist marine, aviation, fine art or forensic adjuster — or where the claim is sufficiently sensitive (such as a dispute between insurers, a claim involving the insurer’s own staff, or a high-profile catastrophe) that the use of a panel firm would be inappropriate.
Independent adjusters operate across the full range of insurance classes — property, casualty, marine, aviation, business interruption, fidelity, fine art, agriculture — and are particularly common in the Lloyd’s and London market, where bespoke instructions to specialist firms remain a major part of how complex claims are handled. The London market has historically maintained a culture of instructed adjusting, with a smaller proportion of delegated authority claims work compared with the UK personal lines market.
The work is typically charged on a time-and-expense basis, often with a fee proposal at the outset of the matter and detailed time recording throughout. The independent adjuster’s report is delivered to the instructing insurer, who retains the indemnity decision, although interim and final recommendations from the adjuster carry significant weight.
Independent loss adjusters operate within the same legal and regulatory framework as loss adjusters generally, with some specific implications of the instructed model. The contract between insurer and adjuster is a contract for professional services, with the implied duty of reasonable skill and care under section 13 of the Supply of Goods and Services Act 1982 in business-to-business work, and section 49 of the Consumer Rights Act 2015 where applicable.
The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 Article 39A defines “assisting in the administration and performance of a contract of insurance” as a regulated activity. Independent adjusters who carry on this activity must be authorised by the FCA in their own right or operate as appointed representatives. Many independent adjusters are authorised firms operating from a single office, with a Principal individual approved under the FCA’s SMCR.
Because independent adjusters typically do not have delegated authority to bind the insurer, they may have a narrower regulatory footprint than panel adjusters operating under delegated authority. The FCA’s ICOBS 8.1 nonetheless applies to claims handled by independent adjusters acting on behalf of UK-authorised insurers, and the adjuster’s reports must support fair and prompt handling of claims.
The CILA Code of Conduct applies to independent adjusters as it does to all members. The duty of impartiality is particularly important in instructed work: an independent adjuster instructed by an insurer must nevertheless investigate the claim objectively and report findings that may be favourable to either party. The principle in Brown v GIO Insurance Ltd [1998] CLC 650, that the loss adjuster should act as an honest broker between insurer and insured, applies with full force.
For Lloyd’s market business, the Lloyd’s Claims Scheme and Lloyd’s Minimum Standards MS11 set out the framework for instructing adjusters. The Scheme provides for the lead underwriter to make decisions on agreement of claims, with following markets bound by the lead’s decision in defined circumstances. Independent adjusters are routinely instructed by lead underwriters on complex losses.
Where an independent adjuster acts as an expert witness, Civil Procedure Rules Part 35 governs the duty to the court. The Civil Justice Council Guidance for the Instruction of Experts 2014 and the CILA Expert Witness guidance set out the practical implications.
An independent adjuster is typically instructed by direct contact between an insurer’s claims handler (or, in the Lloyd’s market, the claims broker) and the adjuster’s office. The instruction letter or email will set out the basic claim details, the policy wording, the immediate priorities and the fee basis. A scoping conversation often follows to discuss the scope of work and timeline.
The adjuster will then commence the investigation: arranging a site visit, gathering documents, interviewing witnesses, instructing other specialists as needed and producing a series of reports. The first report is typically an “advice” report submitted within days of instruction, setting out the preliminary view of the claim and recommending immediate action (such as interim payment, salvage protection, or instruction of forensic specialists). Subsequent reports build on the advice report, with quantum and indemnity recommendations developed as the investigation progresses.
Because independent adjusters do not have a continuous relationship with a single insurer, they often work for multiple insurers simultaneously. Conflicts of interest are managed through formal conflict checks at the point of instruction. Where a conflict exists — for example, the adjuster has previously acted for the policyholder, or there is a related ongoing matter involving the same insured — the instruction will be declined or, with the consent of all parties, managed through information barriers.
The independent adjuster’s work tends to be more bespoke than panel work. Reports are typically longer and more detailed, the engagement with the insurer’s senior claims management is more direct, and the adjuster has greater discretion to instruct further specialists. The fee basis is typically time-and-expense, with the adjuster keeping detailed time records.
Settlement is typically reached on the basis of the adjuster’s recommendation. The adjuster may attend joint settlement meetings, mediations and trials in support of the insurer. The final report is delivered with all supporting evidence and forms the basis of the insurer’s audit trail and any reinsurance recoveries.
The independent adjusting market includes several distinct types of firm. Sole-practitioner adjusters operate as individual professionals, often after careers in larger firms, focusing on specialist work where personal expertise is paramount. They typically serve a specific niche — for example, fine art, classic cars, fidelity or surveying-related professional indemnity — and may handle 10 to 30 claims a year.
Small specialist firms (typically two to ten adjusters) operate in specialist segments such as marine, aviation, fine art, agriculture, business interruption and forensic accounting. RGL Forensics, Burgoynes (fire investigation), and various small marine adjusting firms exemplify this category.
Large independent firms operate across multiple specialisms and locations, with national or international reach. Sedgwick, Crawford & Company, Charles Taylor Adjusting, McLarens and Davies are the principal examples in the UK market. While these firms also do significant panel work, a substantial proportion of their business is instructed independent work on complex losses.
The distinction between independent adjusters and panel adjusters can blur. Many adjusters do both: panel work providing a steady volume base, independent work providing more specialist and higher-fee complex losses. A single adjuster may handle 60% panel claims and 40% independent claims in a given year. The same firm may be on the panel of one insurer and act as an independent adjuster on another insurer’s claims involving the same specialism.
A particular category is the Lloyd’s-approved independent adjuster, listed on Lloyd’s lists of approved firms for instruction by syndicates and managing agents under the Lloyd’s Claims Scheme. The Lloyd’s approval process focuses on the firm’s experience and capacity rather than on individual qualifications, although CILA Chartered status of senior staff is a strong factor.
Independent adjusters should be distinguished from loss assessors, who act for policyholders. The distinction is fundamental: independent adjusters are instructed and paid by insurers; loss assessors are instructed and paid by policyholders. Loss assessors are also regulated as claims management companies under the Financial Guidance and Claims Act 2018.
A high-net-worth household policyholder suffers an unusual theft: a substantial collection of vintage watches, valued at £2.3 million, is stolen during a sophisticated burglary at her London townhouse. The insurer’s panel does not include an adjuster with deep knowledge of vintage watches, so the insurer instructs an independent loss adjuster who is a Chartered Loss Adjuster with extensive fine art and high-value possessions experience.
The adjuster attends the home within 24 hours, interviews the policyholder, takes a detailed inventory of the lost items, obtains the original purchase invoices and gallery valuations, and reviews the security arrangements that were in place at the time of the theft. He liaises with the Metropolitan Police’s Specialist Crime Division and registers the lost items with the Art Loss Register.
Working with a leading independent watch valuer (a Fellow of the National Association of Goldsmiths), the adjuster obtains independent current market valuations for each item, identifying that several of the watches have appreciated significantly since purchase and that two items would meet a “new for old” reinstatement basis under the policy.
A key question arises: was the alarm correctly set at the time of the theft, as required by a policy condition? The adjuster obtains the alarm log and confirms that the alarm was set and was breached by sophisticated electronic countermeasures. The condition is therefore satisfied.
After three months the claim is settled at £2.1 million, with two recovered items returned to the policyholder. The adjuster’s report, with detailed valuations and forensic evidence, supports the insurer’s settlement decision and is shared with the reinsurer.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Next review: 2026-12-11.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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