Dispelling Misconceptions: The Truth About AOBs and How They Can Help You

Assignment of Benefits forms, or AOBs for short, are an important part of the contractor-client relationship in the restoration industry. AOBs are legal documents that allow policy holders to assign the benefits of their insurance policy to a third party. In other words, AOBs allow policy holders to directly connect you, their restoration contractor, to their insurance company and avoid much of the hassle and stress associated with a restoration job. Despite the advantages AOBs offer, misconceptions and myths abound, leading many restoration contractors to view them as potential threats rather than valuable tools. In this article, we aim to debunk prevailing misconceptions surrounding AOBs and shed light on how they can be beneficial instead of detrimental.

The Negative Perception Surrounding AOBs: A Historical Perspective

The negative connotation surrounding the assignment of benefits in the restoration industry, particularly in the state of Florida, is largely due to how assignments were being handled there. Florida laws allowed policyholders and contractors with assignments to sue insurance companies without paying the company’s attorney fees if they lost. This unfairly burdened insurance companies and led to them being sued for small amounts, creating a lose-lose situation. Insurance companies successfully lobbied to restrict assignments of benefits in Florida, causing negative connotations for the practice.

“Historically in other states, if a contractor has an assignment of benefits and they choose to sue the insurance company, they better be sure that they’re going to win, they better have a valid and honest invoice that is supportable through litigation or appraisal,” said Josh Ehmke, co-founder of One Claim Solution. “If they lose, they have to pay the insurance company’s attorneys fees, and so there’s risk there.”

Ehmke further emphasizes that when risks exist for both contractors and insurance companies, an AOB can serve as a valuable tool, providing added protection to both parties involved. By taking into account the historical context and implementing the necessary safeguards, it becomes clear that AOBs can be a beneficial mechanism for the restoration industry, rather than a detriment.

Myth #1: AOBs limit the control of policyholders over their claims

There’s a misconception that by signing an AOB, policyholders relinquish control over their insurance claims. In reality, an AOB is a legal agreement that grants the contractor the authority to negotiate and communicate with the insurance company on behalf of the policyholder. However, the policyholder still maintains the right to be involved in the decision-making process and provide input. 

In fact, granting negotiation authority to the contractor can often be in the policyholder’s best interest. According to Ehmke, AOBs allow for the transfer of what’s called a “chosen action,” or the ability to challenge the insurance companies payment amount and their payment method. 

“If the carrier ends up issuing an extremely low payment that the contractor feels is very unreasonable, they can challenge that payment,” Ehmke said. 

Policyholders can choose to file a lawsuit against the carrier to claim a breach of contract or challenge the payment through litigation to establish the reasonable amount. Hence, policyholders retain control and have recourse to ensure fair treatment throughout the claims process.

Myth #2: AOBs are primarily used for profit-seeking purposes 

Some believe that AOBs are primarily utilized by contractors as a means to maximize profits by inflating claim costs. While there have been instances of fraudulent practices as previously mentioned, it’s important to acknowledge that AOBs can also serve as a convenient tool for policyholders to delegate the claims process to contractors, particularly in situations where immediate repairs or restoration work is required. Property disasters can be stressful and contractors play a key role in alleviating the concerns a homeowner may have by doing the restoration work and dealing directly with the insurance company. 

“As long as a homeowner has the appropriate coverage, the contractor will work out the payment, and the homeowner will never have to worry about it,” Ehmke said. “Instead they can worry about getting their house and life back together.”

AOBs, when used ethically, provide a valuable service to homeowners and contribute to the efficient restoration of their properties.

Myth #3: It’s better for homeowners to avoid AOBs 

When homeowners assign their benefits through an AOB, they can often avoid significant out-of-pocket expenses for repairs and services covered by their insurance policy. The contractor can work directly with the insurance company for payment, reducing the financial burden on the homeowner. This can be especially beneficial for homeowners who may not have the immediate funds to cover the costs upfront.

“For many homeowners, it’s a great benefit that a contractor is willing to move forward with work without the upfront payment. Many Americans are living paycheck to paycheck and don’t have that kind of money for a rainy day,” Ehmke said.

While some homeowners may initially hesitate to sign an AOB due to concerns about giving additional control to the contractor, it is crucial to provide them with reassurance. By explaining the assignment process and its benefits, homeowners can gain peace of mind, knowing that AOBs offer a practical solution that eases their financial burden and facilitates the restoration of their property.


A Final Word

AOBs are a vital component of the restoration process, offering numerous advantages for both contractors and clients. By dispelling misconceptions and understanding the true nature of AOBs, contractors can build trust with clients, expedite payments, and alleviate stress and confusion. Stay informed about AOBs and discover effective strategies to optimize your restoration business by subscribing to our newsletter at One Claim Solution today.

Connor Trahan

Account Executive

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.

Nicole Liesenfelt

Director, Human Resources

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!

Elizabeth McGlone

Demand Generation Manager

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.

Alisha Yartzoff

Director of Contractor Success

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.

Eric Terry


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.

Cam Smith


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!

Dan Doud


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

Josh Ehmke

Co-Founder and General Counsel

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.

Jeremy Traasdahl


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!