How to bill insurance companies

[coletiffcole]

Was interested in doing some local tree jobs from the storm for insurance companies. I managed to get one today but am absolutely mystified by how to get paid. I am going to have labor, fuel, time, etc. invested so when and how do I invoice the insurance company? What is a typical timeframe for getting paid and are there any secret ways the insurance company can get around paying me?

 

[Carburetorless]

Was interested in doing some local tree jobs from the storm for insurance companies. I managed to get one today but am absolutely mystified by how to get paid. I am going to have labor, fuel, time, etc. invested so when and how do I invoice the insurance company? What is a typical timeframe for getting paid and are there any secret ways the insurance company can get around paying me?

I would have a contract, stating my terms, drawn up and signed by the person responsible for payment before I ever touched a tree, if I decided to do anything for an insurance company.

 

[coletiffcole]

But who is responsible for payment? Is it common practice to bill the insurance company when the job is done? Do you collect payment from the homeowner who then gets reimbursed? I have seen many companies advertise that they handle the insurance claim process and the homeowner doesn't need to do anything. How does that work?

 

[ATH]

I invoice the homeowner (and that is who my contract is with). If their insurance is paying without passing it through the homeowner (ie sending check directly to me), I'd offer to send a copy of the invoice to the insurance company as a favor for them, but still make it clear that the homeowner is responsible for the bill. All of my invoices are due in 30 days...

The only time I have been paid directly by an insurance company is when I was doing a damage diagnostic. They wrote a check on the spot.

 

[deevo]

Was interested in doing some local tree jobs from the storm for insurance companies. I managed to get one today but am absolutely mystified by how to get paid. I am going to have labor, fuel, time, etc. invested so when and how do I invoice the insurance company? What is a typical timeframe for getting paid and are there any secret ways the insurance company can get around paying me?

I do a lot of insurance work, not sure how different it is in the states, but i bill them directly, usually takes 30 days to get my $. Home owner never is involved or knows how much I charge. Never ever had a problem in getting paid in 7 years.

 

[2treeornot2tree]

I dont bill the insurance company. Home owner is responsible for payment,and then they get reimbursed by the insurance company.

 

[deevo]

I dont bill the insurance company. Home owner is responsible for payment,and then they get reimbursed by the insurance company.

So it's backwards from how we do it then! Must be a canuck thing!

 

[Dusty Rhodes]

An Insurance Contract is with the insured, not the contractor who does work for or puts a bid in for the homeowner/farmowner. Having said that, if the insured gives us permission, we will pay the contractor directly. The insurance contract dictates what gets paid. For example, some policies will only pay to take a tree/s off the building and pay nothing for cleanup of the debris, others pay a minimal amount for clean up after the tree is off a building. Our policies pay what ever it takes to get the tree off the building. Just paid one today directly to the tree service as they needed a crane to handle two interwoven walnut trees on the barn. The insured gave me permission to pay the tree service directly, which I did. Generally you should get your contract with the insured. Insurance is there to reimburse the policyholder for their loss. Some companies will hire the contractor directly but that could come with a headache for the insurance company if the contractor does not meet expectation of the policy holder, then the policy holder is screaming at the insurance company when they are not satisfied and the insurance company adjuster is stuck in the middle. Not a position that most claims people wish to be in for the insurance companies. The policy is there to reimburse for loss, tree damage is just a part of the loss and there are usually multiple contractors involved in major losses. Get your agreement with the policy holder, speak with the adjuster on the claim if you can to find out how they want the estimate written up and get the insured's permission to list you on the check if possible. I appreciate the services of the contractors out there and try to work with contractors and insureds to get er done.

 

[B Harrison]

I invoice the homeowner (and that is who my contract is with). If their insurance is paying without passing it through the homeowner (ie sending check directly to me), I'd offer to send a copy of the invoice to the insurance company as a favor for them, but still make it clear that the homeowner is responsible for the bill. All of my invoices are due in 30 days...

The only time I have been paid directly by an insurance company is when I was doing a damage diagnostic. They wrote a check on the spot.

On all homeowners policies this is true.
The homeowner is who you are working for and in the end they are responsible for payment. In some cases in the past we have been able to deal directly with an adjuster, but in a big storm like this one thats not likely. You will fair better with a contract of some sorts, and get it signed in front of a whiteness (wife or ground man if he speaks english). If the job is a big one you will also need to verify coverage if the situation seems sketchy. On small jobs verify deductible, because many time it will not be met and the homeowner will still pay out of pocket, ei..a $650 removal of a fallen tree with no home damage isn't likely to be covered since most homeowners deductibles start $500, 750, 1000.

If you are a certified or licensed arborist or contractor, you are responsible for the home you are working on, so you may also want to have a discussion about how (who) is going to fix any home damage, and you may coordinate with that guy/ gal as you will need to work together in a (tree on house situation).

Good Luck

 

[Carburetorless]

For sure if a customer ever tries to get you to bill the insurance company DON'T DO IT!

Think about it, if it were that easy to get your money out an insurance company, then why hasn't the customer already been paid for his claim?

Anytime a customer tries to get you to bill his insurance company, it's a sure sign that he doesn't want to deal with all the hassle of trying to get the IC to pay the claim.

If you fall for it, what will happen is, the customer will get the work done, and you'll be stuck trying to get paid by an IC that keeps putting you off, and at best will try to pay you less than what you did the job for, and at worst will deny the claim, leaving you high and dry.

 

[Garden Of Eden]

For sure if a customer ever tries to get you to bill the insurance company DON'T DO IT!

Think about it, if it were that easy to get your money out an insurance company, then why hasn't the customer already been paid for his claim?

Anytime a customer tries to get you to bill his insurance company, it's a sure sign that he doesn't want to deal with all the hassle of trying to get the IC to pay the claim.

If you fall for it, what will happen is, the customer will get the work done, and you'll be stuck trying to get paid by an IC that keeps putting you off, and at best will try to pay you less than what you did the job for, and at worst will deny the claim, leaving you high and dry.

I bill ins companies all the time. No real problem. Careful spreading definitive statements.

 

[Carburetorless]

I bill ins companies all the time. No real problem. Careful spreading definitive statements.

You have a working relationship with the IC.

The OP doesn't even know who to bill, let alone have a working relationship with a company he can trust, so he's in a completely different situation than you are.

Look before you leap OP.

 

[dawnlynne88]

I bill ins companies all the time. No real problem. Careful spreading definitive statements.

Hello, I am needing guidance in this is there a way you could breakdown how you do this. Also I have heard that the insurance company has a itemized list of what each thing costs, if that’s true how do I obtain this list