Many restoration contractors don’t have in-house legal counsel. If you’re one of those contractors, it’s important to know when the right time is to seek legal advice. Today, we talked with Josh Ehmke, General Counsel and Co-Founder of One Claim Solution, about scenarios where restoration contractors should get legal help. Here are some of the most common situations where he urges restoration businesses to hire an attorney:
The contracts and documents your restoration company uses set the terms of your work and preemptively protect your company from a variety of potential legal issues. Josh encourages all restoration companies to involve legal counsel when drafting their standard paperwork. Restoration legal counsel can help you tailor your contracts to fit the needs of your business and help you avoid common mistakes that contractors make when copying generic restoration contract language found online. When you get your paperwork right from the start, you can save time, money, and legal headaches down the road.
Some of the standardized documentation you should consider drafting with your attorney include:
Your attorney will be able to help you create an arsenal of standardized paperwork that matches your company’s needs and local regulations.
Any time a homeowner, insurer, competitor, or other party files a formal complaint against your restoration business, you should speak with an attorney. Regardless of whether the complaint is through your local contractors’ board, attorney general, or another official agency, having legal counsel can help your restoration business respond correctly, protecting your business and reputation.
If funds aren’t getting directed to you because a homeowner is refusing to turn over insurance funds or a carrier is ignoring your Assignment of Benefits, it might be time to get an attorney involved. “A lot of times you see contractors walk away from being paid what they’re truly owed because they’re too scared to get counsel or a collection agency involved or enforce the assignment [of benefits],” Josh says. “A lot of that fear comes from just not knowing how to do it. That’s why it’s important to go and get an attorney who does know how to do it and can help you through that process.”
Many states have statutes concerning prompt payment and response from carriers. As a restoration contractor, make sure you’re familiar with these local laws. If a carrier delays payment for an extended time, you may want to consider filing a suit with the help of an attorney.
You also have the option to sue insurance providers who you feel are underpaying you. Hire legal counsel if you’re considering pursuing legal action against an insurer. Before doing so, Josh recommends restoration contracts do a cost-benefit analysis. Taking legal action against an insurer is typically only worth it for large-total billing disputes.
Securing timely and fair payment from carriers doesn’t always have to come down to legal action. Before it gets that far, there are many different things you can do to give your restoration company a strong negotiating position with insurance adjusters. One of those things you can do is to outsource restoration insurance billing to professionals like One Claim Solution. Our claims specialists specialize in working with different insurance carriers and securing our contractors higher payouts.
If insurance providers are delaying payment or underpaying, we also have in-house legal counsel to guide us and our contractors through the next steps. See the difference the restoration insurance billing specialists and legal counsel at One Claim Solution can make for your restoration business.