
Can Public Adjusters Be Paid From Bad Faith Damages?
When a policyholder’s insurance claim turns into a legal battle, it may result in damages far beyond the original policy limits—especially in cases of bad faith. But can a public adjuster be paid from those extra-contractual awards? The short answer: no. Public adjusters must operate strictly within the bounds of their licensure, and billing for any portion of legal settlements or court-awarded damages could cross ethical and legal lines. This article explores where the boundary lies—and how to stay on the right side of it.