How to get work from Insurance Companies

[MrWhizz]

Hi all..

Being a small builder who is trying to strengthen their position in the marketplace, I was looking at other avenues of getting work and I thought of approaching insurance companies.

Has anyone had any experience with carrying out insurance work directly for an insurance company ?

Any tips on how to approach them and what they are looking for in a builder, (i.e. size of business, business capabilities, trading history etc).

Any negatives that anyone has experienced ?

I have generally heard that you can get good prices for carrying out the work for insurance but does this mean that there too many trying builders trying to tap into this market.


Cheers

MW

 

[Homer J Simpson]

My guess would be that they would have certain criteria such as CHAS/CSCS cards, a certain amount of public liability, all trades covered etc.

You'll also probably have to cover a wide area and accept all jobs they put your way. Anything from a little bit of ceiling damage to be patched up to maybe a complete house fire.

Depending how serious you are you may want to get some training with the BDMA too.

The rates can be good, but I suppose it all depends on the insurer or their loss adjuster etc.

Where are you based?

 

[MrWhizz]

I'm based in Brighton.

I did think that once you are in, there would be a chance that the work may come in thick and fast therefore I appreciate that I would need to have the capability to expand.

I have quite extensive building knowledge and I have most trades at my disposal so I can cover most levels of work on a domestic and small commercial scale.

I think the rewards would definitely be worth the investment of time to try and get into this area.

I'll look into BDMA training and membership. Thanks for that. That's a good pointer.

This could be the next chapter for the business.

 

[travistane]

how can I get a very affordable price of insurance?

 

[Rhyl Lightworks]

My experience a few years ago of doing work for insurance cos., some manufacturers and others providing cover for electrical goods and repairs was that most of them contracted the work to an umbrella company who had agents covering all postcodes of the country, and the company would pass any job to the umbrella company who then passed the job on to their representatives in the area. I resigned from this, after discovering (by accident) once, that a job we would have charged £35 for doing it as a repair paid for by the customer, and which we got £28 for from the umbrella co. cost the insurance co. over £250 after everyone had taken their cut. No wonder insurance premiums are so high. This is the reason I would recommend no-one to take out extended cover for their washing machine etc. and to get the minimum insurance cover they have to.

Barrie

 

[Homer J Simpson]

But I bet if you were the one getting £250 from the insurance company and paying out £28 to the guys doing the work, you'd be very happy to work for the insurance companies.

 

[Rhyl Lightworks]

But I bet if you were the one getting £250 from the insurance company and paying out £28 to the guys doing the work, you'd be very happy to work for the insurance companies.

I hope not. I feel this is the main thing wrong with this country - there are no scruples, if you can screw more money out of people it is not only considered ok, but often desirable.

Barrie

 

[Homer J Simpson]

Well, I don't consider insurance companies people. Although I do appreciate that people are the ones paying the premiums that keep the insurance companies going.

But I think we're talking about different types of insurance.

I'm talking more about home insurance where I'd expect a loss adjuster to look out for the insurance company being over-charged for any work.

 

[lockyer]

Insurance companies rarely have direct dealing arrangements with independant contractors.

However these guys http://www.prismnetwork.co.uk/ run a nationwide network of independant contractors for insurance companies.

they take a 15% commission out of agreed rates with the insurers.

ask to speak to fraser there, he is a good guy

 

[Talay]

My experience a few years ago of doing work for insurance cos., some manufacturers and others providing cover for electrical goods and repairs was that most of them contracted the work to an umbrella company who had agents covering all postcodes of the country, and the company would pass any job to the umbrella company who then passed the job on to their representatives in the area. I resigned from this, after discovering (by accident) once, that a job we would have charged £35 for doing it as a repair paid for by the customer, and which we got £28 for from the umbrella co. cost the insurance co. over £250 after everyone had taken their cut. No wonder insurance premiums are so high. This is the reason I would recommend no-one to take out extended cover for their washing machine etc. and to get the minimum insurance cover they have to.

Barrie

Going through an insurance claim at the moment for water damage, I am amazed at the ridiculous levels of sub contractors involved in getting a job done.

Now we have a clown of an estimator relaying details to loss adjuster who states that only half the work will be approved but at the hugely inflated "trade only" places they buy products from, that 50% cost would more than cover a full installation bought at a more sensible price.

The whole scheme is a con with everyone wanting their slice of the pie for doing not a lot at all.

 

[Mattlock]

well put ^^^^

 

[Homer J Simpson]

Going through an insurance claim at the moment for water damage, I am amazed at the ridiculous levels of sub contractors involved in getting a job done.

Now we have a clown of an estimator relaying details to loss adjuster who states that only half the work will be approved but at the hugely inflated "trade only" places they buy products from, that 50% cost would more than cover a full installation bought at a more sensible price.

The whole scheme is a con with everyone wanting their slice of the pie for doing not a lot at all.

Kick them all off-site & get a loss assessor in an cash settle for the inflated price and then get more things you wanted repaired.

 

[Beachcomber]

Kick them all off-site & get a loss assessor in an cash settle for the inflated price and then get more things you wanted repaired.

:|
So if various middle-men and contractors are inflating the price of the settlement thats a case of greedy businesses exploiting the system and getting fat.....

....But if you can get your hands on the inflated settlement in cash thats good?

I don't get it.

 

[Homer J Simpson]

If the insurance company are willing to pay out x amount to do LESS work than you could get done for that amount, why not take the cash and get what you want done? The insurance company still pay out the same amount.

 

[Beachcomber]

If the insurance company are willing to pay out x amount to do LESS work than you could get done for that amount, why not take the cash and get what you want done? The insurance company still pay out the same amount.

Oh I see, it's a case of double standards.
Fair enough.

 

[Homer J Simpson]

What? I'm not the one complaining that each person in the chain is taking their cut and pushing up the price of the job.

I'm saying if the insurance company are willing to settle for x amount and it can either be used to pay their inflated prices to do less work or you could cash settle and use it to get cheaper tradesmen to do more than the insurance company would - the result (for the insurance company) is still paying out x amount.

 

[Beachcomber]

But the result is the same - if over inflated prices are a bad thing then they are a bad thing.

You can't have it both ways - you can't say overinflated prices 'lining the pockets' of various trades is wrong but you getting to pocket all the cash is right.

 

[Homer J Simpson]

So just allow the insurance company to spend the inflated price anyway and get less actual work done for it?

 

[Beachcomber]

So just allow the insurance company to spend the inflated price anyway and get less actual work done for it?

ffs.

No - it should be the insurance companies responsibility to manage costs and cut out as many middle men as possible.

But the fact is, an insurance company will probably use a facilities management company who will in turn use a contractor who may in turn sub-contract to another - even so I'm sure this process is alot cheaper than the insurance company employing, equiping and maintaining a nationwide fleet of trades on a permenant basis.

What you don't do is try to make a wrong a right so long as it benifits you.

 

[Talay]

It is outsourcing gone mad.

In the old days, the insurance companies would have their own people and you would get quotes from a local builder. They might even have some builders on their preferred list.

However, now, they outsource it. That would be ok but it is then outsourced again and again. In the end, either the guy doing the job gets nothing or a semi cartel of suppliers charge the earth and give kickbacks to those ordering from them. It is legalised fraud.

I told the estimator to just put it all in writing but as he now thinks, rightly, that there will be no work and thus no hefty slice or pie for him, he hasn't gotten off his lardy arse and sent the paperwork.

In the end, I reckon it will be a fight to get a number from the insurance directly as they will want to batten that down and though I have Ltds at my disposal, I am not a customer of the "preferred" rip off supplier.

I guess a few beer vouchers to a friendly builder might give me access to the pricing structure of the supplier though

 

[MASSEY]

We had a good insurance job lined up for January, we quoted 10k which was a very handsome price for the work that needed doing. We happened to be the cheapest too. The quotes they had that were higher than ours really were taking the piss.

I forgot to get back to the insurance company in question and lost the job by a deadline to get back to them. :redface:

Good start to 2012 that was.

If the insurance company are willing to pay out x amount to do LESS work than you could get done for that amount, why not take the cash and get what you want done? The insurance company still pay out the same amount.

I think the whole forum have a good idea about how YOU would like things done.

If you had your way tradesmen would all be on minimum wage

The system is no different to the way any other sector runs really.

Shall we start boycotting high street stores because they buy from a wholesaler dirt cheap and sell it to us for 5 times as much?

 

[Homer J Simpson]

The system is no different to the way any other sector runs really.

Shall we start boycotting high street stores because they buy from a wholesaler dirt cheap and sell it to us for 5 times as much?

With online sales booming and high street retailers struggling I'd say we already are doing this - just not officially calling it a boycott.