One important legal tool for restoration contractors to use is Limited Power of Attorney. When your customers sign a Limited Power of Attorney document (LPOA), they give you the authority to act on their behalf. This can simplify and speed up restoration work. Here is what One Claim Solutions general counsel Josh Ehmke and paralegal Samantha McCreedy have to say about it.
Without Limited Power of Attorney, contractors sometimes have to put their work on hold while they spend time chasing down their customers for their signature or approval. When it comes to restoration work, time is of the essence, and pausing to get signatures can really slow down your team’s workflow.
When you get your customers to sign a Limited Power of Attorney document, it gives you permission to sign on behalf of your customers. “It just expedites the whole process,” Josh says. One Claim Solutions recommends always asking your customers to sign a Limited Power of Attorney document at the beginning of your work with them.
Maintaining cash flow is crucial for the success of restoration contractors and businesses. But it can take a while to get paid for your work when you’re dealing with insurance carriers. Fortunately, getting Limited Power of Attorney can help you get paid faster. If contractors with LPOA receive a multi-party check that lists both the contractor and the homeowner, they don’t have to spend days to weeks tracking down the homeowner for their signature. Instead, the contractor can endorse the check on the homeowner’s behalf and deposit it the same day.
Getting Limited Power of Attorney can go a long way to improve a contractor’s relationship with their customer. It can make the process of recovering from property damage less stressful for property owners. “LPOAs… really allow the homeowner to not have to worry. It keeps them really hands-off,” Samantha says. “It’s a sense of ease for these homeowners. They don’t have to worry about money that’s coming and going. [The contractor] can handle it all for them.”
An important part of how LPOA impacts a contractor’s relationship with their customers depends on contractors properly explaining it before asking their customers to sign. Sam’s advice for contractors is to just be upfront about what LPOA is. Customers tend to appreciate how Limited Power of Attorney benefits them when they understand it. Share with them the information we’ve outlined to help them understand how they’ll benefit from signing a LPOA.
If you’re a restoration contractor who wants to learn more about how Limited Power of Attorney can benefit your business, reach out to the restoration legal experts at One Claim Solutions.