How are public adjusters usually compensated?

Public adjusters are typically compensated by charging a percentage of the insurance claim amount that is settled on behalf of the client. This method of compensation is beneficial because it aligns the adjuster's motivation with the client's interest; the adjuster is incentivized to maximize the claim settlement. The percentage is usually agreed upon in advance and is detailed in a written contract, ensuring transparency between the public adjuster and the client. This approach ensures that public adjusters only earn their fee if they successfully negotiate a settlement that benefits the policyholder, thus offering an additional layer of trust and accountability in their services.

In contrast, the other options do not accurately reflect standard practices in the industry. Public adjusters do not receive a salary from insurance companies since they work for the policyholder rather than the insurer, which eliminates any potential conflicts of interest. Client subscriptions are typically not a model used by adjusters, and commissions on sales of insurance policies generally relate to insurance agents and brokers, not public adjusters who focus on claims adjustment.