Insurance isn't paying enough because rising material costs

We have been getting a lot of insurance work lately and are finding that insurance companies are not paying out enough to cover make up for the steep rise in material costs that have been going on since the beginning of the year. Our approach has been to get the customer to sign up and we tell them that we will work for the insurance proceeds plus their deductible. Lately, the jobs haven’t been meeting our minimum profit margin target.

My question is what s the best way to go back to the insurance company and tell them they aren’t paying out enough? Should we go the supplemental route and try to bill them for overages after the fact? Do we fight up front and try to get more per square, and if so, any thoughts on what works?

If you will take the time to go through the forum you will find a lot of information that answers your question. There are several members on here who are quite adept at handling insurance claims and they have all posted about it.

If you are signing contingency agreements to work for insurance proceeds without knowledge of the insurance process you are treading on thin ice with your business. Knowing what you need to do a job and knowing how to get it are two completely different skill sets. The second set takes education and experience. The education you can get in numerous places. This forum is a good place to start. Contact LMB for help. He has a program you can purchase that will get you pointed in the right direction. Experience is just something you have to acquire. Neither one will come overnight. It takes much time and effort.

Here is a link to a thread on this site that will give you a book review on Larry’s program. It was written by a member who is already very good at dealing with insurance claims. I completely agree with his review.

LMB’s “Playbook” - Evaluation & Report

Then take the time to browse the forum for other insurance related threads. Once you gain some more knowledge you will be able to ask more specific, direct questions instead of asking for the nutshell version.