The Salary of an Insurance Paralegal
An insurance paralegal usually works for an insurance agency or company, although some insurance paralegals work for law firms and specialize in insurance-related issues. This could include claims matters --- medical, auto or other forms of insurance --- or litigation. Most insurance legal issues involve claims and, ultimately, litigation. More than 70 percent of all paralegals work with law firms although, perhaps surprisingly, paralegals working for law firms earn among the lowest salaries of all paralegals. Working as an insurance paralegal may begin by first acquiring experience in the insurance industry.
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Training
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An insurance paralegal can follow the path chosen by the majority of paralegals, namely attending an accredited school to obtain an associate's degree in paralegal services. Aside from standard paralegal studies, someone interested in a career in insurance paralegal work should take additional classes in insurance such as risk management, insurance planning and course work on the different types of insurances like health, life, auto and homeowners. Other paralegals may choose to follow an insurance curriculum, followed by paralegal training. Some insurance paralegals possess insurance-related degrees or, more often, insurance experience. They then go to school to receive a certificate, diploma or college degree as a paralegal. Certification for paralegals isn't mandatory in any state, although organizations such as the National Association of Legal Assistants (NALA) offer certification exams resulting in the designations certified legal assistant (CLA) or certified paralegal (CP).
National Average Salaries
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According to the U.S. Bureau of Labor Statistics (BLS), paralegals who work for insurance carriers earn a median annual salary of $52,200, trailing paralegals who are employed by the federal government ($58,540) and those working for management companies and enterprises (about $56,000). Paralegals working for employment services companies make a median salary of $50,050 and law firm paralegals make about $44,500. PayScale.com reports that the national average for all paralegals ranges from about $33,000 to $52,500 per year as of 2011.
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Experience
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Not surprisingly, paralegals earn more money as they gain experience. Salary.com reports that entry-level paralegals, or those with only a couple of years experience (Paralegal I), earned a median salary of about $47,400 per year. This figure is for paralegals in all work environments for all types of companies. Paralegals II made about $53,500, Paralegals III earned $62,000 and Paralegals IV earned median salaries of about $73,000.
Industry Comparisons
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According to PayScale.com, insurance paralegals are the highest-paid paralegals by company type, earning a salary ranging from about $43,000 to $56,000 per year, with defense insurance paralegals making $40,000 to $51,500 a year. Litigation, government, public law office and real estate paralegals all make between $33,000 and $53,500 annually.
Outlook
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With a projected job-growth rate of 28 percent through 2018 --- more than double the national average for all occupations--- the outlook for paralegals is bright, according to the BLS. Although private law firms will continue to be the largest employers of paralegals, other fields, including the insurance industry, will grow at a more rapid pace. Paralegals who possess diplomas, degrees, certifications and especially experience increase their chances of employment in a highly competitive field.
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References
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