What to do when an insurance adjuster plays nasty?
Jim Thompson PCC, PCG
Commercial Disaster Restoration Consultant - Expert Witness, Weapons of Mass Destruction Disaster Site Worker Trainer
A close friend and former operations manager of mine called me last week with a huge large loss problem. The adjuster (whom I have known for decades) brought in a 'consultant' (who I have also known for decades) on a multi-million dollar flood job. I am very familiar with the loss site, as I have handled multiple large losses there too. My buddy told me that his company had a signed multi-million contract to restore the building from the flood damage and had charged the same price in the past with the same client at the same building for a similar flood. The insured liked the work the company had done on the first one and called them again. A full estimate and price was given-agreed upon- and the contract was signed-prior to the adjuster showing up.
The adjuster told my buddy that they were bringing in a national competitor to 'consult" about the flood job. My comment to him was, it is a "set up and to prepare for battle-today". Sure enough, a few days later, the insured kicked my buddy's company off of the 7 figure flood job.,
The reason given was. "the national restoration company wanted the job themselves".
Isn't that special.
Anyone who knows me or has been to one of my large loss workshops, knows that I am a huge fan of up front pricing, getting all of the particulars on a job squared away on the first or at least second meeting with the adjuster, always come in under time and under budget and play fair with all sides.
There are some adjusters and restoration consultants who play the game "nasty". It's a stacked deck from the beginning. If you "draw attorneys' on the beginning of every large loss-you will go out of business-fast!!! If you sue for payment it may take 20 years to collect and the expert witness fees and attorney's fees may be more than you win.
What do you do when an adjuster stacks the deck against you from the get go?
I am considering holding a special, by invitation only, one day forum on this subject, open to guys who have been to one of my large loss workshops already. I don't want these 'battle-plans' well known & I surely would not suggest using them on the majority of large losses. Where the adjusters are good guys, trying to close a file and ensure that the restoration company plays fair too. This is the big leagues.
When an adjuster brings in a national restoration competitor, as a 'consultant' on your large commercial loss, beware!
It ain't going to be pretty. Let the games begin!
Cheers:
Jim Thompson
727 424 2000
Commercial Disaster Restoration Consultant - Expert Witness, Weapons of Mass Destruction Disaster Site Worker Trainer
7 年Paul. I like using the insured's money and assists to run a large job. In fact last month a Risk Manager told me that I was still "his restoration guy" I told him I was retired. He said after a lifetime of giving me $15,000,000 in work- I was still his guy, I would use his personnel, his money and his Sunbelt Rental account and run any of his plants that had a loss. I said, Yep. Call me. If I have money, and personnel, I can rent the equip and handle any size job- Why not? It's not rocket science. I agree that too many restoration guys jump into the deep end of the large loss pool without a lifeline. And frankly should not be there. That should not allow an adjuster to bring in his buddy under the guise of a consultant. Bring in another restoration company who is not the 'consultant'. Or bring in 3 and ask for scopes and bids if there is time. I showed Shawn Folks how to operate a 20 million dollar job last year in Baton Rouge, He received a $3,000,000 payment within 3 days of starting the job based on what he learned at my Large Loss Workshop. Wrote me a very nice thank you letter and sent two crew chiefs to each of my last 2 Large Loss Specialist Hands On Workshops wit Sunbelt Rentals
Director of Large Loss
7 年While I think your point is a good one, Jim there is a second part to some of the shananigans. Us contractors should acknowledge who we are. When I had my company, I found myself in the final running for a 16 million dollar job. No way could I finance the project. Be honest about your capibility and your resources.
Commercial Disaster Restoration Consultant - Expert Witness, Weapons of Mass Destruction Disaster Site Worker Trainer
7 年David! That is the whole point of this discussion. Some restoration guys have not been subjected to this "standard practice.
Owner, Transitions Restoration, LLC, Partner and Sales Trainer, DK Engagement Group
7 年Unfortunately, I just experienced this on a large fire loss. the Adjuster brought in his program contractor to write an estimate and that contractor attempted to take the project over. I finally had to remind him that I was under contract and what he was doing was tortuous interference. A letter from my attorney ended his attempts. The moral to this story is that you need to keep your clients close and warn them of what might happen.