Insurance PSP programs, Crawford, Alacrity help

[drewhagerty]

I have been actively marketing these PSP programs for about a year with no luck.

Is there anybody out there that can explain to me what approach to take, and what type of marketing can be done to get my company on these preferred vendor lists? It seems like it is impossible.

Does anybody have any other ideas regarding getting insurance work? I am located in San Diego, CA so if anybody outside of this region can help me out I do not think there would be any competetion. Thanks

Drew

[markp]

For Crawford Connection, If you do any work for insurance co's already, ask them to invite you on, CC will contact you and send you the info, it is a LOOONG process though.
For other psp it is up to the adjusters to invite you on. Keep on building relationships with every adjuster you work with and eventualy you will be working with the ones you want.

[Peter J. Crosa, Adjuster]

To clarify, you need to understand the difference between an insurance company's preferred vendor list and a "so-called" preferred vendor program.

The former is when any given insurance claims department uses their own preferred vendor list. There is no program per se. They don't exercise the level of control over vendors that the "programs" do. They just keep a list and use the vendors on the list. In this case, you have to identify the "list keeper" and jump through the hoops to be on that list. it may take time because they usually only add to the lists once a year.

The latter is when an insurance company refers their claims to a "preferred vendor program." Examples of such programs would be Crawford Connections, Alacrity, Code Blue, etc. These programs exert much greater control over vendors as to performance and pricing. You can apply directly to these programs since they are constantly looking for qualified vendors.

There is a science to developing your relationships with adjusters. Check out a website dedicated to that end: www.sshca.net
_________________
Want to increase market share of insurance restoration business? Want to build relationships with claims adjusters . . . check out www.sshca.net

Be Energized!

[jmazzara@tampabay.rr.com]

I would like to know anyone who has experience working for code blue and any comments regarding this third party vendor.

Joe Mazzara
Florida Restoration of Tampa Bay LLC
Catasrophe Cleaning LLC

[living the dream]

Good luck
They want to give you the work but at no profit it's a loss leader for those that can work out of a garage without overhead. No realistic contractor can do tis if they ask read their agreement it is all one sided and leaves you holding the bag with no recourse to collect at the end. If your lawyer read the agreement he would never let you sign it.

[Sentry]

I agree. The Code Blue contract is a nightmare! I looked into it a couple of years ago or so, and it really is very restrictive. It promises nothing and puts the contractor on the hook for everyhting that could happen, including things on their end. It also prohibits the contractor from collecting from the client if payment is not issued by the insuror or Code Blue. Add to that the fatc that to even get work from them you have to bid a percentage of Xactimate, and we all know that you have to get everything & more from Xactimate to earn a sustainable margin.
By the way the bidding for work is structured it appears to me that they charge Xactimate pricing to insurance companies and then pay a percentage of that for the work, pocketing the rest as gross profit. It's a pretty slick way to be a huge GC, if you ask me.
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Chris Cole, CR, WLS
Sentry Construction Company, Inc.
3042 Somerset Dr.
Macon, GA 31206
(478) 784-7080
(478) 788-2608 fax
"We Make it Easy!"
www.sentryconstruction.com

[Peter J. Crosa, Adjuster]

I have some familiarity with preferred vendor programs. To be honest, I've met water mitigators for whom this method of acquiring business works. But they have a certain dollar range of losses and can turn these out assembly line fashion. There's a quick 1-2-3 formula and bam you're done.

If you're wanting to go after the big restoration jobs (defined: $100,000. and up) you may not want to align yourself with the preferred vendor programs.

In my book, "2009 Restoration Cotnractor's Guide to Insurance Repair" there is a chapter that discusses PVP. Check it out at www.sshca.net.
_________________
Want to increase market share of insurance restoration business? Want to build relationships with claims adjusters . . . check out www.sshca.net

Be Energized!

[arjaze]

thanks for sharing this info, this could be a good opportunity..


_________________
california sex crimes lawyer

[admin]

Why is a california sex crimes lawyer on The Restoration Forum????

[admin]

Why is a california sex crimes lawyer on The Restoration Forum????

Ok, admittedly we don’t have the highest standards for who we allow to post here but we have to draw line somewhere.... and I'm thinking it begins with sex crimes lawyers....

Michael Hosto

[Peter J. Crosa, Adjuster]

Is he defending or prosecuting sex crimes?
_________________
Want to increase market share of insurance restoration business? Want to build relationships with claims adjusters . . . check out www.sshca.net

Be Energized!

[koolbrz1]

I have tried alacrity also..they always claim they have no room on their program.

Crawford Contractor Connection. You have to apply to their program, then you are on a waiting list. However if you know who their clients are, you can contact the right person there and they can have you added on their program. Getting on more programs is based on performance. They do have tough standards and companies come & go regularly.

[Peter J. Crosa, Adjuster]

Again, there you go. If you know a company adjuster, you can ask him to recommend you and/or ask to have you placed into a Preferred Vendor Program.

Remember, there is a difference between a Preferred Vendor Program and a Preferred Vendor List.

It does require experience and education to manuever your way through this industry. Don't short change yourself by failing to study available materialls to improve how you increase market share of insurance business.
_________________
Want to increase market share of insurance restoration business? Want to build relationships with claims adjusters . . . check out www.sshca.net

Be Energized!

[WCtrain]

[Peter J. Crosa, Adjuster]

Ah. Your point is noted Bryan.
_________________
Want to increase market share of insurance restoration business? Want to build relationships with claims adjusters . . . check out www.sshca.net

Be Energized!

[FGSWPA]

Code Blue is very poor when compared to other programs (at least in PA). They are hard to deal with, won't pay too much of anything for a claim, and refer a very small amount of jobs. We have had 3 in about a year.

PSP is great. If we could run the company on just those claims we would.

Contractor Connection is very good, solid all around. Each carrier on the program is different though.

Alacrity is solid, quick to respond, but their system could use updating.

Nothing beats marketing to agents/adjustors. We find that Radio is also very effective for restoration work. We do a weekly 20 minute show and that pays for itself.

[Peter J. Crosa, Adjuster]

Radio advertising! That's a first. Keep us posted on how that works for you. I agree that you've got to be meeting adjusters where they live. The Preferred Vendor Programs like Alacrity, Code Blue, etc. reportedly only account for 30% of the business available out there.
_________________
Want to increase market share of insurance restoration business? Want to build relationships with claims adjusters . . . check out www.sshca.net

Be Energized!

[lmhuling]

My advice stay away from them. The PSP programs will nickel and dime your business, remember they are the middle man and you won't have any profit left. Attempt to establish good working relationships with your favorite insurance adjusters and agents and they will send business your way!

[FGSWPA]

Gotta disagree. While it is important to market to agents/adjustors/customers...These programs are something you need to add to your portfolio of leads.

There are MANY Adjustors/Agents that will never refer you...or anyone else. Its just not their nature.

More importantly is how claims are handled now...ask you customers if an adjustor actually came to their house...you'd be pretty damn surprised at how many say an adjustor never came and they settled over the phone and joined the "program". This is happening more and more with Allstate. They are sending a check in the mail after a phone conversation.

State Farm is great, very profitable work. Continue to try and get on the program.

[Peter J. Crosa, Adjuster]

The last two posts reveal just how conflicted contractors are as to whether the preferred vendor programs work.

I have to say that you can acquire knowledge that will tell you which agents and adjusters can give you business and which may not.

Keep learning and trying different things.
Best Regards,
Peter Crosa
_________________
Want to increase market share of insurance restoration business? Want to build relationships with claims adjusters . . . check out www.sshca.net

Be Energized!

[FGSWPA]

Probably a more complete answer is do both! Our business is spread out from our referring sources (ALWAYS TRACK WHERE YOU GET YOUR CUSTOMERS FROM!).

We have a nice mix. 65% of work is referred, 30% is program work.... the rest comes from previous customers, internet, friends, family, contractor referrals (I have a great Bounty Hunter Program that works out nicely! http://www.fgswpa.com/BountyHunter.html) We have several contractors that refer us just because of this...

Program work is also nice during disasters. Alot of CAT adjustors come in from halfway across the country and leave quickly...they aren't referring anyone so alot of customers take the program route so they know they are getting a "certified" contractor and not some vulture trying to take advantage of someone because they are available.

[lmhuling]

90% of our work is referrals from previous customers and insurance adjusters/agents and the remaining 10% is online advertising. We were part of a PSP program two years ago and we had mixed results. We pride ourselves on being the customer advocate and we do not want to be in the back pocket of a specific insurance carrier as we all can agree that often times the insurance carrier doesn't always have their insured's best interest when settiling their claim. We have been in business 30+ years.

[bat63]

We are part of a vendor program (not for long) and the adjusters we deal with are the best. They do seem to care for their insured and try to get them what they need. It's the outside vendor program that is horrible to deal with. They want you to pay for the repairs out of your own pocket and then once you've jumped through all the firey hoops they create they will give you your money back - without interest. That's all fine except we are a small contracting business and a 300K fire restoration is not the kind of cash flow we have available. The adjusters have to tell the insured about the "preferred vendor" whether they approve of them or not. Happily, the adjusters do love our work and hopefully will continue to refer us once we are not on the program - even though they are not supposed to.