Carpet Cleaning Business having insurance company ills

[JD]

Looking for advice.

I'm researching this for a friend. He has a pattern of continuous run in's with insurance companies. He works "real hard" on floods for days, putting numerous pieces of equipment onsite and constantly checking them (dehumidifiers, fans, etc), this is coupled with doing moisture checks sometimes twice a day only to find the insurance company trying to swindle him down to little more than one third of his original asking. He is not looking to be paid quickly but feels he has nothing to do but comply as it's a war he doesn't know how to fight. Some insurance companies are more apt to give what he asks I suppose but does anyone have some tips on how to fight this battle? He has used the blue-books. But the blue-books talk about making $30 an hour and such, he doesn't clean carpet that cheap and doesn't see any reason to come down that low for floods simply because of that's what the cheapest companies charge. If you know this business you know that investing in flood equipment is a healthy expense unless the equipment is rented. He is nearly asking himself at this point "why deal with floods" when he knows they can be very profitable. What's the method? Is tip #1 to "just say no" to customers who use state farm??

Suggestions, info, comments appreciated.

Thanks,

JD

[Vox Humana]

The most sure solution is to have the customer sign an agreement to cover the cost of the service. The agreement should state the cost, who is responsible for payment (i.e., the homeowner), when payment is due, and if assignment will be accepted from the insurance company. I had a small kitchen fire, and I found that one company didn't want to get involved when they found who my insurance company was -- so yes, it might be a good idea not to deal with some companies. It may be that in your area flood remediation isn't a profitable business. If all your friend's competitors are willing to accept the amount that the insurance company pays, then that is the going rate and they will get the job. If your friend wants to charge more, then he will have to somehow position himself in the market and try to differentiate why his services merit a higher fee.

[JD]

Thanks Vox, no need to cross reply to all groups if you don't want to. I am trying to invoke multiple responses from various individuals by posting to multiple groups. I appreciate your input, we have gone over options such as those you mentioned and then some. I think what I am looking for is responses from people who are in adjacent or similar fields who have learned how to deal with insurance companies. My freind is fairly determined to not drain the consumer, -the customer is paying for insurance and for what reason?- this is a big catch obviously. He has recently given in by coming down 60+ % on a job not knowing if he will get that or more like 35% of the asking. I'm looking for people with business experience to give input. I don't have that much myself and I believe that everything with insurance companies is a game. Except for their own money of course.

Thanks for any suggestions or even links.

JD