ChatGPT Conversation about Restorers and Insurance Companies

From The Desk of Toby Clem (No AI tools were used to write this piece, but we did have a good conversation) 

AI is part of our future. As individuals. As business people. As companies. As a society. 

I thought it would be interesting to hear from ChatGPT about what it meant to run an efficient restoration business. 

It was certainly interesting. And it prompted some questions that I have never hesitated to ask a human, so I certainly challenged the artificial intelligence machine.

Here is how it went. 

Word for word. 

Running an efficient mitigation business is crucial to ensure that your clients receive the best service possible. Whether you are dealing with water damage, fire damage, or mold remediation, the following tips will help you streamline your business operations and provide top-notch service.

1. Invest in training and certification for your team: Make sure that your team members are properly trained and certified in their respective fields. This will not only ensure that they are knowledgeable and skilled in their work but will also give your clients confidence in your business.
2. Use technology to your advantage: Technology can help you streamline your processes and improve efficiency. Consider using software to manage your workflow, track jobs, and communicate with clients. Also, invest in tools and equipment that are up-to-date and efficient to help your team complete jobs faster and with greater accuracy.
3. Focus on customer service: Communication is key in the mitigation business. Make sure that you are communicating with your clients regularly and addressing any concerns they may have. Be transparent about the process and keep them updated on the progress of the job. Also, make sure that your team members are polite, respectful, and professional at all times.
4. Build relationships with insurance companies: Insurance companies are often the primary source of business for mitigation companies. Building relationships with them can help you get more business and streamline the payment process. Make sure that you are familiar with the insurance claims process and that you are providing accurate information to the insurance adjusters.
5. Prioritize safety: Safety should always be a top priority in the mitigation business. Make sure that your team members are wearing appropriate protective equipment and are following proper safety procedures. This will not only protect them but will also ensure that your clients' properties are not further damaged.

In summary, running an efficient mitigation business requires proper training and certification, the use of technology, excellent customer service, building relationships with insurance companies, and prioritizing safety. By implementing these tips, you can improve your business operations, provide top-notch service, and ultimately, increase your bottom line.

[[I’m sure you see what piqued my interest. This is where my questions began]]

Why do you say that insurance is the primary source of business for mitigation companies?

Insurance companies are often the primary source of business for mitigation companies because homeowners and property owners typically rely on their insurance policies to cover the cost of repairs and restoration after an unexpected event such as water damage, fire damage, or mold growth. Insurance policies may cover the costs of mitigation services such as drying out a water-damaged property, cleaning up mold growth, or restoring a property damaged by a fire.

As a result, insurance adjusters play a critical role in the mitigation business as they are the ones who assess the damage and determine the coverage amount for the claim. Mitigation companies often work closely with insurance adjusters to ensure that the scope of the work and the cost estimates are accurate and acceptable to the insurance company.

Additionally, insurance companies often have a list of preferred mitigation companies that they work with, which can provide a steady stream of business for those companies. For these reasons, building relationships with insurance companies is an important part of running a successful mitigation business.

But the contractor isn't bound by the insurance policy are they?

That is correct. The insurance policy of the property owner does not bind a mitigation contractor. However, insurance companies often refer property owners to mitigation contractors that they have established relationships with, as these contractors have proven to be reliable and effective in their work.

When a property owner experiences damage to their property, they typically file a claim with their insurance company. The insurance company will then send out an adjuster to assess the damage and determine the amount of coverage available under the policy. The property owner can hire any mitigation contractor they wish, but insurance companies may have a list of preferred contractors they recommend to their clients.

In some cases, insurance companies may require property owners to obtain bids from multiple mitigation contractors before beginning the work. This is done to ensure that the cost of the repairs is reasonable and in line with industry standards.

Ultimately, the decision of which mitigation contractor to hire rests with the property owner. However, working with a contractor that has experience working with insurance companies can help ensure a smooth claims process and minimize any potential disputes or issues that may arise during the mitigation and restoration process.

What if the contractor doesn't work with the insurance company? 

What is the best method for working with a client who is ok with that?

If a mitigation contractor chooses not to work with an insurance company, they can still provide services to clients who have experienced property damage. However, it is important to communicate clearly with the client about the insurance process and what their responsibilities are as the policyholder.

If a client is not filing an insurance claim and is paying for the mitigation services out-of-pocket, the contractor should provide a clear estimate of the work to be done and the cost of the services. It is important to be transparent with the client about any potential costs or fees that may arise during the course of the project.

If a client is filing an insurance claim, but the contractor is not working with the insurance company, the contractor should clearly communicate to the client that they will not be involved in the claims process. The client will need to work directly with their insurance company to file the claim, and the contractor should not provide any estimates or documentation to the insurance company.

In either case, the contractor should focus on providing excellent service to the client and ensuring that the mitigation and restoration work is done correctly and efficiently. By focusing on the needs of the client and providing high-quality services, the contractor can build a strong reputation and earn referrals from satisfied clients.

I dropped the conversation here. I think in general we can agree. The last paragraph nailed it. 

There is hope for the future. 

Let's hope that the insurance companies don’t see this very soon and start feeding the machine lies like the ones we’ve seen go viral!
Stay alert. 

Head on a swivel. 

It's a crazy world out there. 

If we have ever helped you out, personally or through our content, we would love to hear from you, it means a lot and helps us out!