An Assignment of Benefits or AOB is a legal document which allows policyholders to assign some or all of the benefits of their insurance policy to another party. This agreement allows the other party to directly deal with the insurance company and the right to enforce its payment. When a claim occurs after unexpected damage, restoration companies will accept an AOB as opposed to receiving cash up front from the policyholder. Then, the contractor will bill the insurer directly so clients don’t have to deal with the hassle of coordinating between their restoration and insurance companies. All in all, this allows restoration contractors to work more efficiently and put their customers first. Below we’ll discuss the benefits of AOBs for contractors and their customers.
Increased Flexibility And Control Over The Claims Process
AOBs help contractors streamline the restoration process because they remove the need to continually run decisions through the client. While being transparent with the client about what is going on is very important, lacking an AOB can significantly delay the restoration process when contractors must check in with the client for every small decision.
“Within the property insurance world the contractor is able to deal directly with your insurance company for payment as long as a client has the appropriate coverage,” said Josh Ehmke, Co-founder and General Counsel of One Claim Solution.
This increased flexibility with the claims process helps contractors deliver services that increase customer satisfaction, reduce administrative burdens, and enhance cash flow.
Increased Customer Satisfaction
AOBs allow contractors to quickly and effectively make decisions that are best for their clients, which leads to greater customer satisfaction.
“AOBs are a great tool for contractors to be able to come in and help put their customers’ minds at ease and assure them that they got the payment part figured out,” Josh said.
According to Josh, contractors can help build trust with clients by being transparent with them.
“Customers don’t always know what the costs are associated with emergency services and sometimes contractors will try to hide those costs from them. That can result in hard feelings and make customers think they got taken advantage of,” Josh said. “But if contractors are upfront with these types of things, and really help your customer understand the nature of the industry, that typically smooths things over.”
The importance of customer satisfaction can’t be overstated, as it establishes a foundation of trust and loyalty. Satisfied clients are more likely to seek the services of the contractor again in the future, ensuring a steady and reliable base of loyal customers.
Alleviated Financial Burdens
Moving through the claims process smoothly is also a huge benefit to homeowners who want to get their life and home back together. In the face of unexpected restoration expenses, homeowners often find themselves grappling with the burden of upfront payments. However, AOBs allow contractors to provide a remarkable benefit that alleviates this financial strain—the ability to proceed with the work without requiring immediate payment. This saves homeowners from tapping into their limited savings or enduring additional financial stress.
AOBs also relieves homeowners from the stress of dealing directly with insurance companies for payment and instead places that responsibility on the contractor. Contractors, being familiar with the industry standards and the value of various services, are well-equipped to create accurate and detailed invoices.
“It doesn’t give the contractor the right to price gouge or bill for additional items because the carrier’s not going to pay anything above what’s reasonable,” Josh said. “But it does allow the contractor to make sure the insurance company does pay the reasonable amount.”
AOBs also help homeowners receive the optimal benefits from their insurance, which is a lifesaver for many individuals and families.
“The more that I’ve been in the industry, the more I realize that insurance is absolutely necessary. With insurance it makes financial sense to buy a house because it’s protected,” Josh said. “There’s a book called ‘Delay, Deny and Defend‘ that I read, and it talks about how insurance is the great equalizer of the American middle class because it allows the middle class to be able to afford houses.”
Josh expressed that adopting this mindset has allowed him to perceive insurance companies from a different perspective, encouraging him to approach them with a willingness to collaborate rather than as adversaries. He suggested considering the fact that homeowners possess the rightful protection to address their needs, and it’s important to find reasonable ways to work together in resolving issues without resorting to unfair pricing practices.
“I also want to help contractors realize that insurance companies aren’t the enemy, that we all exist and they have guaranteed payments for their type of work because of insurance companies,” Josh said. “It’s important to have mutual respect for eachother.”
AOBs are an incredible tool in helping contractors to better serve their customers in the unfortunate event of a property disaster. It streamlines the process to not only ensure a more efficient resolution, but also enables contractors to initiate timely repairs. With the authority granted through AOBs, contractors can expedite the claims process and commence necessary repairs promptly, preventing further damage and ensuring the safety of the property and its occupants.
If you’re interested in learning more about the benefits of using AOBs for your jobs, consider subscribing to the newsletter at One Claim Solution today. By staying informed, you can further understand how AOBs can empower contractors to better serve their customers and provide efficient solutions in times of property disasters.
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 Customer Success at One Claim. With a passion for helping customers 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 customer 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!