10 May Claim Compliance: We’ve Set The Standard Others Try To Live Up To
Claim compliance is nothing new for roofing contractors – in fact, it’s not unusual to have in excess of 12,000 new legislative bills and agency regulations proposed for the insurance industry in a given year that can specifically impact how claims are filed, managed and paid. Recently, many states have taken more actions to attempt to remove the contractor from the claims process altogether – including Texas and Florida who have some of the strictest laws on unauthorized practice of public adjusting.
To stay compliant, roofing companies and contractors working with policyholders should be extremely diligent to ensure they are not breaking any laws – which happens more often than you think. Read how a single contract clause caused a class action lawsuit against one roofing company in Texas.
If your business has an internal supplementing department, here’s what you can do to streamline the claims process and remain compliant:
Have A Clear Process For Updating Claims Policies And Procedures
Often, there is no specific person dedicated to updating policies—either someone is not dedicated or the person who is dedicated to it takes on that responsibility amid other duties that may get higher priority. Notice of new laws may come in, but they might not be incorporated into the workflow. Ensure you have someone on staff keeping an eye out for new laws, litigation and implement changes ASAP. Another option would be to outsource your claims management process entirely to a company like Balance that is up to date on compliance so you never have to think about it.
Use Staffing And Workflow To Manage Inefficiencies
Often times, many claims are made at the same time in an area after a severe weather event. This can lead to heavy handler workflow or claims volumes burdened further by older, outdated claims. As a result, there is frequent duplication of work processes and multiple steps to accomplish tasks. Avoid this by hiring and training to account for the added claim volume or outsource your claims management process entirely to a company like Balance that is up to date on compliance so you never have to think about it.
Have A Process That Ensures Everyone Is In Compliance
People make mistakes, but sometimes those mistakes can cost A LOT of money if not in compliance with state and local laws. Avoid any potential situation that could damage your company’s reputation, or even worse, cause legal issues by having a review or QC process for all claims and everyone who works them. Another option would be to outsource your claims management process entirely to a company like Balance that is up to date on compliance so you never have to think about it.