Loss Adjusters may also be called insurance investigators or assessors. A loss adjuster is a qualified professional whose function it is to assess the true value of a loss (or claim.) The loss adjuster can be either: a salaried employee of an insurance company; the agent or broker who sold the policy may act as the adjuster in the case of small claims; an independent adjuster works for himself or for an adjuster company whose services are acquired by the insurance company.

If the loss is in the form of damage that needs to be repaired, the loss adjuster will also oversee that the repair is done according to standard. In insurance the rule is that the insured should be placed in the same situation he was in before the loss. For example, accident damage repair to a car will be supervised by the loss adjuster.

The loss adjuster has a laid-down scope of authority depending on the instruction he receives. Sometimes he is only required to report on the circumstances which led to the claim, such as a car accident. At other times he may be requested to establish an estimate of the damage, or he can be asked to make recommendation on a fair settlement value (which the insurer is not bound to.) Lastly, he may be asked to control the entire settlement, which, in this case, is binding on the insurance company.

The adjuster checks if the loss is covered by the policy and he also has a duty to look out for any fraudulent activity.