Insurance/Legal Matters in Restoration

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According to the IRS, two-thirds of all businesses fail in their first five years. One of the major reasons this happens is not from a lack of business, but from a lack of cash. 

Three quarters of 2017 are in the books. The final quarter is when you should be focusing on your plan for the coming year. If you didn’t already start in October, now is the time. 

In part one of this article we explored the four stages of turnaround involved in saving a failing business, including the objectives and actions necessary in each stage. These are the mechanics involved in bringing a business back to solvency and setting it up for sustained profitability in the future. Most of the information is easy to identify with; even common sense, if you will.

If you have been in the restoration business for more than five years, you have likely noticed it is getting harder to collect from your customers who are dependent upon insurance proceeds and two-party checks to pay for your services. 

When a property owner is surprised by the lack of insurance coverage for a water loss, the credit worthiness of the customer may come into question.

Working with third party administrators is pretty much a normal way of life for restoration contractors in the U.S. Only a select few companies have chosen the path of completely finding work on their own, and bypassing TPA work. 

Catastrophes, while terrible for people in the affected area, produce a lot of restoration and remediation work in a concentrated area, making them an incredible business opportunity for restoration contractors.