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Though contractors and Public Adjusters work within the same realm and have an identical clientele, many contractors have never explored a partnership with a local Public Adjuster. Rather than being in competition with one another, the two professions often work hand in hand together to deliver an efficient claims process and a full recovery from property damage for homeowners and commercial property owners.
There are many benefits to contractors who choose to establish a long-term relationship with a licensed Public Adjuster, including fewer administrative burdens, ensured legal compliance, an expedited claim process, and more successful claim negotiations with better settlement outcomes.
Engaging public adjusters allows you as the contractor to focus on project execution while entrusting the paperwork and insurance negotiations to a specialized partner.
This can be especially beneficial after a major weather event when you’re inundated with new work and need to manage surge capacity. Handling 20 new claims simultaneously requires an immense amount of time spent compiling estimates, making phone calls and sending emails, and fulfilling documentation requests from insurance carriers. Because most contracting companies lack the administrative capacity to manage this volume of back-office work during a seasonal surge, offloading these responsibilities to a Public Adjuster ensures the claims process moves more quickly and smoothly.
By shifting documentation and communication tasks off your plate, you can focus on what you do best: quality craftsmanship.
Additionally, a Public Adjuster can help policyholders pursue coverage and payments they may not have identified on their own, which in turn can make more projects viable and properly funded.
Aside from having deep insurance and policy interpretation expertise that helps navigate the intricacies of property damage claims, Public Adjusters have an edge when it comes to negotiations with insurance adjusters.
Once a policyholder signs a Letter of Representation, the Public Adjuster becomes the policyholder's authorized representative on the claim, and the insurance carrier must communicate with the Public Adjuster directly. Carriers owe the policyholder duties of good faith and fair dealing under state law, and a licensed Public Adjuster knows those obligations and can hold the carrier to them.
By contrast, in most states contractors are not legally allowed to engage in the “unauthorized practice of public adjusting,” which can lead to insurance adjusters limiting or shutting down communication and refusing to work with them on claims.
Instead of risking a stalled claim and a lost job by handling the negotiation yourself, tag in a Public Adjuster to move the claim along.
Some established contractors may be wary of entering into a partnership with a Public Adjuster due to fears of damaging their standing with insurance company adjusters, who they may interact with frequently.
However, bringing a Public Adjuster onto a claim is not a contentious move. Most experienced Public Adjusters maintain excellent, non-adversarial relationships with carrier adjusters and have respect for the position. We are two sides of the same coin, each working for an objective and fair claim resolution.
Public Adjusters know the lingo and can engage in nitty-gritty, nuanced conversations with insurance adjusters that can have a major impact on the claim outcome and coverage decision. We do this by maintaining persistent, direct, and non-abrasive communication when disputing issues with carrier adjusters. A qualified Public Adjuster has mastered the art of fact-checking without being rude, and holding insurers to compliance timelines and coverage obligations without any animosity.
Consider a hypothetical scenario. Let’s say your estimate for a specific claim is $30,000 and the carrier initially offers $10,000. If a Public Adjuster enters the picture and settles the claim for $25,000, the homeowner still has to cover some expenses out of pocket and pay the Public Adjuster for services, but the homeowner ultimately secures an additional $15,000 they would not have received otherwise, which means more of the repair can be funded.
This illustration is for explanation only. It is not based on a specific claim, and it is not a representation of typical or expected results. Every claim depends on the policy, the damage, and the carrier's determination.
Look at it like this: you can take 100% of a grape or 90% of a watermelon. When a Public Adjuster is able to increase a settlement, the policyholder can end up with more after the fee than they would have had without using a Public Adjuster.
Public Adjusters are strictly prohibited from accepting or paying referral fees and other financial incentives to or from contractors. This restriction is necessary to preserve the Public Adjusters’ professional independence and ethical obligations, ensuring they make unbiased determinations and only accept legitimate claims without the influence of monetary exchanges. Offering or accepting kickbacks is a big red flag, and introduces major legal risk for your contractor business.
Reciprocal, non-monetary referral relationships are common in this industry, but what is permitted varies significantly by state. Before establishing any referral arrangement, both parties should confirm what their state allows.
The beauty of contractor-Public Adjuster partnerships is that the workflow is reciprocal. Public Adjusters frequently receive inquiries from clients immediately following a loss (such as water or roof damage) who do not have a contractor lined up yet. Public Adjusters are sometimes able to provide these clients with a list of reputable local contractors (where state rules permit it and where no benefit flows back to the Public Adjuster for the referral).
Vice-versa, contractors receive a steady flow of work requests from insured individuals with damage claims, many of which may be stuck in limbo or underpaid. By recommending a trusted Public Adjuster, the contractor earns goodwill with the property owner and moves the claim towards a positive outcome and appropriate settlement.
In this way, both businesses can help each other grow without money ever changing hands.
In my experience, contractors often initiate partnerships by handing off difficult, "stuck" claims for a trial run. In one instance, I successfully resolved three stalled claims for a contractor and quickly established a trusted, ongoing partnership.
Following positive results, contractors often transition to providing fresh, new claims rather than only problematic files. Introductions with the client typically involve a brief email exchange following a verbal conversation between the contractor and homeowner.
To feel confident that a Public Adjuster will act ethically and be a positive reflection on their business as a partner, contractors may choose to be present to observe interactions with their clients and assess professionalism firsthand.
Tiger Adjusters works with contractors across the country who refer property owners to us for claim help. We provide a quick response to referred clients, often deploying within 24 to 48 hours to complete a property inspection, as well as regular updates throughout the process. We then work to recover a settlement that reflects the documented scope of damage and the coverage available under the policy.
In return, we expect a few things from our contractor partners. First and foremost, accurate estimates are absolutely necessary. Inflating estimates is damaging to the client and introduces potential legal issues. Rather than trying to pad pricing, we ask that you let us go to work on claim negotiations to pursue the settlement the claim warrants.
In situations with recoverable depreciation or supplemental claims, prompt communication about the completion of work is key to tying up loose ends successfully.
Reach out to your local Tiger Adjusters office to discuss a referral partnership with a licensed Public Adjuster.
Prior to becoming a licensed Public Adjuster with Tiger Adjusters, Jonathan owned and operated a Bio-One location (a nationwide biohazard restoration franchise), and leverages that experience in a similar service industry to better navigate the claims process. Jonathan works closely with contractors in his area and understands the repair side of a claim from years of hands-on experience.
