The Pros and Cons of Outsourcing the Supplement Process
For roofing contractors, managing insurance supplements is often one of the most complex and time-consuming aspects of running a business. Handling supplements requires precision, knowledge of specific software, and communication skills to ensure all aspects of a roofing project are adequately compensated. While some contractors choose to manage this process in-house, others find it more efficient to outsource to specialized insurance supplementing companies. But is outsourcing the right choice for your business?
Let’s explore the pros and cons of outsourcing roofing supplements to help you decide if outsourcing makes sense for your business.
What is the Supplement Process?
After reviewing an initial insurance claim, contractors frequently find that it falls short of covering all necessary materials, labor, or code upgrades. Submitting a roofing insurance supplement, a request for additional funds to cover these extra costs, is a crucial step in ensuring a project is fully compensated. However, handling the administrative burden of this process, especially for multiple projects, can overwhelm contractors who are already managing tight timelines and extensive workloads.
For those unfamiliar with the process, check out How to Get Started with Supplementing for a more detailed guide. Let’s dive into the pros and cons of outsourcing this vital task.
Pros of Outsourcing Roofing Supplements
Access to Experts in Supplementing
Roofing contractors excel in construction and installation, but submitting accurate and effective supplements often requires an entirely different skill set. Outsourcing connects you with specialists who know the ins and outs of supplements. These insurance supplementing companies have in-depth expertise in filing accurate supplements, managing communications with insurance adjusters, and maximizing payouts for contractors.
Additionally, many supplementing companies employ Xactimate experts - individuals certified in the use of Xactimate, the industry-standard software for creating detailed insurance estimates. This expertise ensures that every claim is thoroughly reviewed and optimized for approval, which is particularly beneficial for roofing companies that lack the time or resources to train staff in this complex software.
Reduced Administrative Burden
The insurance supplement process is packed with time-consuming administrative tasks that can bog down a contractor’s day-to-day operations. Some of the key responsibilities involved include:
Reviewing insurance estimates to identify discrepancies
Collecting and organizing supporting evidence (e.g., photos, measurements, documentation)
Preparing the supplement request with accurate line items
Communicating with insurance adjusters and following up to ensure timely approval
All of this takes significant time, which could otherwise be spent on managing crews, marketing, or completing jobs. By outsourcing, contractors can free themselves from these time-consuming tasks, allowing their team to focus on revenue-generating activities.
Faster Claim Processing
Speed is critical when managing multiple roofing projects. Supplementing companies are focused on filing supplements quickly and accurately, reducing the likelihood of delays due to incomplete or incorrect documentation.
Experienced teams help avoid costly mistakes that could delay claims. Small mistakes, like incorrect line items, can create significant delays. A Xactimate expert working for a supplementing company has the expertise to avoid these pitfalls, which helps prevent costly setbacks.
Focus on Core Business Activities
Contractors are often juggling multiple priorities, from project management to client relations. When roofing supplements are outsourced, contractors have more time to focus on the core aspects of their business that directly impact growth, such as building client relationships, securing new jobs, and overseeing operations on-site. Less admin work means more time to focus on growing your business and avoiding burnout.
Cons of Outsourcing Roofing Supplements
Less Control Over the Process
One downside to outsourcing is the reduction of control over the supplement process. When you rely on an external company, you are dependent on their methods, communication skills, and approach to negotiating with insurance adjusters. If the supplementing company’s processes do not align with your business values or goals, it could lead to miscommunication or dissatisfaction.
That said, working with reputable supplementing companies can mitigate this risk. Clear onboarding processes and established communication protocols can help maintain alignment between your company and the outsourced team.
Potential for Miscommunication
While outsourcing can streamline processes, it also introduces the risk of miscommunication between your team and the supplementing company. A lack of clarity on expectations, timelines, or specific claim details can result in delays or errors. However, reputable insurance supplementing companies typically have systems in place to ensure transparency and regular updates. Setting up clear communication from the start can help avoid these issues.
Cost Considerations
How much does it cost to hire a roofing supplement company? Outsourcing inevitably introduces a new cost to your business. Pricing models for insurance supplementing companies vary widely and include:
Flat-rate per job: A single, fixed fee for each supplement submission.
Monthly membership: Contractors pay a monthly fee for a set number of supplements, often with different tiers based on the level of service required.
Percentage-based: The supplementing company takes a percentage of the revised supplement total.
Contractual minimums: Some companies require contractors to commit to a certain volume of supplements or sign long-term agreements.
While outsourcing can reduce overhead in the long run, especially when compared to hiring and training in-house staff, the initial costs should be carefully weighed against the potential benefits.
Choosing the Right Insurance Supplementing Company
Not all supplementing companies are created equal. To get the most out of outsourcing, choose a partner that understands your business. Look for companies that:
Have expertise with Xactimate and other industry-specific tools
Offer clear and transparent pricing models
Provide regular updates and maintain open lines of communication
Is Outsourcing Right for Your Business?
Deciding whether to outsource roofing supplements depends on the specific needs of your business. If administrative tasks are becoming a bottleneck or if your team lacks the expertise required to maximize claim success rates, outsourcing might be the right move. Carefully weigh the pros and cons, and if you choose to outsource, partner with a company that understands the nuances of your industry and can meet your specific needs.
How OneScope Can Help
At OneScope, we specialize in providing outsourced roofing supplements to contractors across the country. Our team of Xactimate-certified experts is dedicated to maximizing your claims while minimizing the administrative burden on your business. Here’s how we address the common concerns of outsourcing:
Maintaining control: We work directly within your CRM or platform to keep you informed at every stage of the process.
Clear communication: Our onboarding process ensures that all expectations are set from the beginning, and we provide swift responses to any inquiries.
Cost-effective pricing: We offer a percentage-based pricing model with no upfront fees, so you only pay if your supplement is successful.
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If you're ready to streamline your supplement process and increase your bottom line, contact OneScope today to learn more about how we can help your business thrive.
