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There are a lot of misconceptions out there about the use of an Assignment of Benefits (AOB) in the restoration industry. Some say they’re risky. Others say they’re important. At One Claim Solution, we’ve seen firsthand how powerful AOBs can be when used the right way. Today, we’re here to discuss some of the biggest myths we hear about Assignments of Benefits and the reality behind those misconceptions so that you have the information you need to make smart decisions.
An Assignment of Benefits is a legal agreement that gives a restoration contractor permission to act on the policyholder’s behalf to coordinate billing and payment with their policy provider. With a signed AOB, the contractor can communicate directly with the insurance company, bill them, and receive payment, without having to get the homeowner involved at every step.
If you’re unfamiliar with how Assignments of Benefits work, you can compare them to healthcare billing. Your doctor or hospital doesn’t send you a bill and hope you send it to the insurance company. Instead, your healthcare provider sends it directly to your health insurance company. Then, health providers and insurers arrange payment. AOBs help accomplish a similar dynamic in the property restoration world. They allow a restoration contractor to coordinate directly with the insurance provider for payment.
Reality: In almost all states, restoration contractors using an Assignment of Benefits agreement is both legal and common. Josh Ehmke, OCS Co-Founder and legal expert, put it this way, “The Assignment of Benefits on a post-loss claim should and can be valid in many states.” In fact, One Claim Solution itself has been a part of securing legal wins that helped defend the use of Assignments of Benefits for contractors.
While most states do allow using AOBs, laws vary by state. Texas or Florida, in particular, have the most restrictions around a contractor’s use of the Assignment of Benefits.
Reality: AOBs actually protect the homeowner and help keep the restoration process moving. Without an AOB, a restoration contractor must rely on the homeowner to receive the insurance check and then forward the funds.
That may sound good on the surface, but it can get complicated in practice. Most homeowners have never dealt with a water loss or property insurance claim before. Restoration contractors, on the other hand, deal with water damage and insurance claims every day. Josh explains, “Most homeowners don’t know what to do with the insurance check. They think it’s theirs.” When insurance funds go directly to the homeowner because there is no AOB in place, it can lead to confusion, delays, and potentially even legal conflict. With an AOB in place, the insurance company can pay the contractor directly. This helps reduce the number of hands money has to pass through to get to the right party and avoid awkward conversations.
Reality: When explained correctly, an AOB can actually improve the homeowner’s experience and relationship with their restoration contractor. Because there are so many misconceptions around Assignments of Benefits, some contractors are hesitant to use them. They worry that asking homeowners to sign the agreement will lead to suspicion and confusion. But this doesn’t have to be the case when you approach it the right way.
Instead of just handing AOB paperwork to the homeowner and asking them to sign, explain what the agreement means. Explain how your team has experience with claims, and that with an AOB in place, the homeowner doesn’t have to worry about being the one to fight for better insurance payouts. Explain how it allows them to avoid many long phone calls with their insurance provider that they would handle otherwise. Explain how insurance coordination is included as a part of your restoration services with no extra charge. An Assignment of Benefits agreement will improve the homeowner’s experience and contractor-homeowner relationship when the homeowner understands what the AOB means for them.
Reality: An Assignment of Benefits is a powerful tool in speeding up a restoration contractor’s cash flow. When the contractor has the power to coordinate with the insurer on behalf of the policyholder, it helps prevent delays caused by the homeowner needing to speak with the insurer. The restoration and payment process is more streamlined, reducing the number of days to payment. Of course, the faster the payment turnaround is, the stronger a restoration company’s cash flow position will be.
At One Claim Solution, Assignments of Benefits are part of our daily work. We help contractors incorporate AOB agreements into their work, giving them a better position for coordinating with insurers. Our team has years of experience working with AOBs and can help you understand the laws in your state around their use in contracting. You don’t have to fight for insurance payouts alone. Instead, turn to our specialized team at One Claim Solutions. Our insurance billing services and legal expertise will make running your restoration business easier. Call us today.
335 E Germann Rd #340
Gilbert, AZ 85297
Hi there! I’m Connor, the Account Executive for One Claim. My goal is to guide our contractors through the sales process, ensuring you’re equipped with all the information you need to make your decision and hit the ground running once aboard. We view ourselves as an extension of your business and I strive to make the process an enlightening and consultative one.
My career has primarily been focused in software sales over a few different industries but the last few years were spent helping general contractors solve similar problems to what we’re doing here at OCS! Outside of work, I love spending time with my family, cooking and boating during the summer months.
Hello! I’m Nicole, and I’m here to champion for our employees, recruit for new talent, and impact culture at One Claim Solution. I find satisfaction in supporting a memorable employee experience and bring innovation, problem solving, and strategic view to the process. Nothing is more important than our people, and a healthy culture is my top priority! I have had the pleasure of building my career in various sectors, specializing in small to medium size firms focused on high-growth. My experience is centered around driving and implementing change, leading high-performing teams, and driving process improvements. I am excited to make an impact at One Claim. Outside of work, my family and I enjoy getting outdoors as much as possible to explore beautiful Colorado!
Great to meet you! I’m Elizabeth, and I’m the one behind all the emails and advertisements you’ve been seeing. As the Demand Generation Manager at One Claim Solution, my mission is to connect with contractors like you who need our services. I’m passionate about having an impact on others and I bring a wealth of experience in demand generation and marketing strategy to create moments of delight, curiosity, and education for you.
Prior to One Claim Solution, I had the privilege of building marketing departments from the ground up at companies in a variety of industries, including IT consulting, first protection, and healthcare. Personally, I love being outdoors, playing Dungeons and Dragons and board games, singing, and traveling.
Welcome! I’m Alisha, and I’m here to champion your success as the Director of Contractor Success at One Claim. With a passion for helping contractors thrive, I bring a wealth of experience in onboarding, customer service, and account management to ensure your journey with us is nothing short of exceptional.
Prior to joining One Claim, I had the privilege of scaling SMB and Enterprise Customer Success teams at fast-growing SaaS startups. With over six years of experience at companies like Mavenlink, Teamwork, and ServiceTitan, I honed my expertise in building high-performing teams and fostering proactive, consultative relationships. This background has equipped me with a deep understanding of the challenges faced by businesses like yours, and I’m dedicated to helping you overcome them.
Hi there, my name is Eric! I am the Chief Technology Officer here at OCS, spearheading our technical strategy. I have a background in computer science, graduating cum laude from BYU-Idaho with a Bachelor’s degree in Computer Information Technology.
Before coming to One Claim, I served as the Director of Engineering at Slingshot Technology, Inc., a company later acquired by WorkWave in 2021. My professional journey has spanned both emerging startups and established corporations, with a steadfast focus on cultivating high-trust, low bureaucracy teams and innovating technology using agile methodologies.
In my free time, you can find me flying drones, enjoying the outdoors, and spending time with my family.
Hello, my name is Cam, I’m the COO of One Claim Solution! I come from a management consulting background (Bain & Company) and hold an MBA from the University of Michigan. I have worked at a wide variety of organizations, from Fortune 500 to small-cap, in an equally wide variety of industries. I have over 15 years of experience in operations and strategic growth, and I have spent much of my career focused on developing high-performing tech-enabled service organizations through early stage and high growth phases.
Outside of work, my wife Brittny and I have four kids, ages 13 to 6. As residents of Mesa, Arizona, we love to ski and explore the national parks of the southwest!
Hello, my name is Dan, and I am the CEO of One Claim Solution. I am super excited by everything we are doing at OCS to be the market leading insurance billing specialist that advocates on behalf of our restoration contractors.
My professional experiences are predominantly corporate in nature. My career started at General Electric in finance and accounting. Immediately prior to joining OCS, I spent time as an investor at Bondcliff Partners and management consultant with Bain & Company. I also hold an MBA from the Kellogg School of Management at Northwestern University and got my BS in finance and accounting from Northeastern University.
Outside of the office, I enjoy spending time with my wife, two young children, and our family dog, Whiskey. We live in Charleston, SC and take advantage of the beautiful weather by spending as much time as possible outside at the beach or adventuring around town
Hi, I’m Josh! In 2016, I co-founded One Claim Solution with my partner Jeremy Traasdahl, and I serve as General Counsel of One Claim Solution. Working in the restoration industry, Jeremy and I saw contractors struggling to get paid quickly and fairly and we knew there was a need for change. We founded One Claim Solution to be this change and it’s been my privilege to see our company grow and to advocate for our clients as general counsel.
Outside of my passion for helping the restoration industry, I enjoy spending time outdoors, fly-fishing, hunting, skiing, and coaching my kids’ baseball teams. I’ve been married to my amazing wife for 20 years and we have a beautiful family of 5 children.
Hey, I’m Jeremy! In 2016, I co-founded One Claim Solution with my partner Josh Ehmke. Working in the restoration industry, Josh and I saw contractors struggling to get paid quickly and fairly and we knew there was a need for change. We founded One Claim Solution to be this change and it’s been my privilege to lead our amazing team.
Prior to One Claim Solution, I started my career as an inside sales rep for Avnet, then moved to Pepsico as a district sales manager. Outside of work, I love spending time with my wife and four children, two boys and two girls!