Here is a post from ICS that Scot Rendall put up the other day...
Posted By Scott Rendall on 1/27/2009 at 1:08 PM
At every job, we try to develop a great relationship with the client and adjuster/agent. We let the client know that we work for them and that there are 2 contracts involved. If needed, we'll also start giving them a "heads up" about potential problems we foresee, whether it's the ins. company, the structure, non-salvagable items, whatever. We keep them in the loop at all times.
On the other side we keep the adjuster in the loop with our findings, obviously.
If a pricing issue arises and everything else has failed, and it does on rare occasion, we coach the customer to go to bat for us. After all, if we have to pick sides our contract/agreement is with the insured and it's in our best interest to keep them on our side.
Most of the time it works to our advantage and although a customer may not want get involved, they really have no choice assuming we didn't over charge them. If a pricing issue arises and we've got that good rapport with the client, and assuming the adjuster is playing hardball with us, we'll advise the customer like this:
"Mrs. customer, I want to keep you in the loop on a recent development with your insurance company. Before I say anything else I'm really sorry the insurance company has placed you in this difficult position, but it's not something that can't be overcome if we play their game.
I submitted a bill to them and they kicked it back saying it was too high. Ma'am, as you know (this would have already been covered when they authorized us to start) we don't set our own prices. In fact we use industry-accepted price lists set by a collective group of insurance companies and contractors in our area. This software program is called Xactimate and is accepted universally as the standard insurance pricing guideline.
The discrepancy is that your insurance company, for whatever reason, is using their own proprietary software which actually pays less than Xactimate's standardized pricing. When we first started our company, we made a pact to "play by the insurance company rules" by accepting the standardized pricing. Unfortunately your insurance company is playing by their own set of rules.
Since you are my boss, I would like for you to help me with this. Can I count on your assistance with this matter?
(assuming she says yes, ask her to do the following and report back to you)
I'd like for you to make a phone call to the insurance company for me. Here's what I'd like for you to say: "Mr. Adjuster, I have been advised by my restoration contractor that your pricing is below the acceptable standard. He says he uses a program called Xactimate and it is a standard price list used in the insurance industry. Is that not the program you use? (the ins. adj. often breaks right there, in my experience) blah blah blah...."
Assuming she gets nowhere with the initial call, you'll ask her to make a 2nd call. You'll tell her something like this:
"Thanks for calling the adjuster, ma'am. I really appreciate that you and I are on the same page. It appears that they're playing hardball, which is unfortunate. Can you do me one more favor?" (assuming she says yes)
"The difference between our total bill and what they say they're going to pay is $_________. Could you please call the adjuster back one more time and tell him that I'm going to bill you for the difference if they don't pay my invoice? This is how the game works. If they say no we'll work something out, but this is how we play this wonderful game called "insurance hardball". If you call him and say exactly what I asked you to say, they will pay it because our pricing is standardized and completely fair. Thanks ma'am, I owe you one." (after it's resolved, buy her dinner because she went to bat for you)
100% of the time in the rare occasion that we've gotten price resistance from the adjuster, this has worked for us. We're able to keep the customer on the same page, who is ultimately our boss any way.
Before going through the customer, though, we want to absolutely make sure that the insurance company is playing hardball. If they are, we would have already advised them that we'll be forced to bill the difference to the insured and let them deal with the adjuster.
Of course we will, as much as possible, remain on great terms with both parties and try to work things out before the game gets to hardball mode, but we're not afraid of the game if push comes to shove.
