Collections vs. Follow-Up – What Restoration Contractors Really Need
Most restoration contractors think they need collections when they actually need better follow-up systems. Understanding the difference is worth thousands of dollars and critical relationships. Follow-up is the systematic process of moving active claims through the insurance payment pipeline—confirming receipt, checking status, responding to requests, and escalating appropriately. Collections is recovering money after the normal payment process has failed—demand letters, liens, legal action. This guide clarifies when to use each strategy, reveals why 90% of delayed payments can be resolved with proper follow-up, provides a four-phase follow-up framework that gets results, explains the collections reality check before pursuing aggressive action, and shows when collections actually makes sense. Stop confusing activity with progress and learn the hybrid approach professional claims managers use to maximize recovery.