We know overhead and profit (O&P) is important for your business and that as a general contractor, you are owed O&P on all claims that a carrier determines a general contractor will be needed to complete the job.
So, how do you talk to adjusters about O&P? Follow these tips to make sure you’re prepared for your next O&P discussion:
- BE PREPARED
Keep records of different carriers’ tactics and prepare your rebuttals in advance. Get yourself psychologically prepped for the conversation. Have your plan, your research and proof ready to go before the conversation.
- VISUALIZE SUCCESS
Ask yourself, how can both sides have victory? Can they add job supervision hours instead? Usually, GC O&P is 10% and 10%. If they won’t pay that, show them that you’re willing to meet in the middle. Maybe they will pay for 5% and 5%.
- LISTEN MORE
Don’t talk too much. Remember the phrase, “silence is golden.” Listen more, or you might miss important information. Plus, talking too much may make you seem like a bully and can lower your bargaining power. Don’t give out more information than you have to. Don’t jump to conclusions. Don’t participate in selective listening (hearing what you want). Really listen to what they’re saying.
- BE RESPECTFUL
If you disagree with an adjuster, do so in a nice way. Disagree respectfully and state your case calmly and without profanity. Be patient, do not get stressed out! Re-group and learn when to walk away.
- STATE YOUR CASE
Listen to them, hear their facts and understand why they don’t want to pay. Then state your case. You have to pay to train your staff, to have proper insurance, to install a roofing or siding system. Bottom line, you pay more money to operate as a General Contractor, which is what GC O&P is designed for.|
- STICK TO THE FACTS
Make sure you remind your adjuster, it is not about winning, losing, or power. It is about the facts. Only ask for items you know should be approved.
- MAKE THEM SAY YES
Ask yes/no questions that you know the answer is “yes.”
– We are a general contractor, correct?
– We have office expenses such as training, insurance, marketing, safety meetings, correct?
- GET IT IN WRITING
Ask them to send you something in writing that explains their position. They’re not going to send something in writing that their company doesn’t stand for.
- KEEP YOUR INTEGRITY
The most important thing you need to remember is, make sure you are portraying your company in a positive light throughout the conversations. Adjusters will remember you. You don’t want your company flagged because they don’t like working with you. In fact, they’ll probably send you business if they enjoy working with you.
- ASK FOR HELP
Know when to change players and let someone else take over. Use a company like Elite who knows the ins and outs of the insurance restoration world and already has a good track record with working with carriers.