Cash flow is the lifeblood of restoration contracting. You’ve completed the work, submitted the claim, and now you’re waiting. And waiting. And waiting.
Meanwhile, your suppliers want payment in 30 days, your crew expects paychecks, and your overhead keeps piling up. You’re essentially financing insurance companies’ slow payment processes with your own working capital.
The average insurance claim payment timeline is 45-60 days. The contractors who get paid in 20-30 days aren’t luckier—they’re smarter. Here’s how they do it.
Understanding Why Payments Actually Slow Down
Before we fix the problem, let’s diagnose it. Insurance payments don’t slow down randomly—they slow down for specific, predictable reasons.
The 7 payment killers:
- Incomplete documentation (adjusters can’t process what they can’t verify)
- Estimation errors (mismatched pricing or scope triggers review)
- Poor communication (requests for info go unanswered)
- Ambiguous scope justification (adjuster can’t defend approval)
- Missing required forms (authorizations, COIs, W-9s)
- Supplement surprises (additional work submitted without proper documentation)
- Internal processing delays (lost in the insurance company’s bureaucracy)
The insight: Every one of these is within your control.
Strategy #1: Submit “Adjuster-Ready” Claims From Day One
The fastest payments go to contractors who submit claims adjusters can approve immediately without requesting additional information.
The adjuster-ready checklist:
Documentation:
- ✓ Comprehensive before/during/after photos with timestamps
- ✓ Detailed scope of work with quantities and measurements
- ✓ Moisture readings and equipment logs
- ✓ Signed authorization and work agreement
- ✓ Certificate of insurance
- ✓ W-9 form
- ✓ Vendor payment information
Estimate requirements:
- ✓ Line-item detail with unit costs
- ✓ Industry-standard pricing (Xactimate where applicable)
- ✓ Equipment rates with rental periods
- ✓ Labor broken down by task and hours
- ✓ Material specifications with quantities
- ✓ Justification for specialized services
Supporting evidence:
- ✓ Industry standard references (IICRC, etc.)
- ✓ Code requirements triggered by repairs
- ✓ Manufacturer specifications
- ✓ Third-party test results if applicable
Pro tip: Create a submission template that includes all required elements. Every claim should look professionally packaged, not hastily assembled.
Strategy #2: Use Strategic Timing for Submissions
When you submit matters almost as much as what you submit.
Optimal submission timing:
- Monday-Wednesday before noon (adjusters processing weekend backlog)
- Avoid Fridays after 2 PM (gets buried in weekend pile)
- Avoid end-of-month (adjusters focused on closing monthly reports)
- Early in adjuster’s day (fresh eyes, more processing capacity)
Why timing matters: Adjusters have productivity rhythms. Submit when they’re most likely to review and approve quickly, not when your claim will sit in a queue for days.
Strategy #3: Master the Art of Follow-Up (Without Being Annoying)
There’s a sweet spot between ghosting and pestering. Find it.
The strategic follow-up timeline:
Day 1 (submission): Send confirmation email with claim summary and all attached docs listed
Day 3: Brief email confirming receipt and asking if any additional information is needed
Day 7: Status check call or email. Ask specific question: “What’s the current status and what’s the expected timeline for review?”
Day 14: If no response, email adjuster’s supervisor with professional inquiry
Day 21: Escalate to carrier’s claim resolution department if still no movement
Day 30+: Consider involving policyholder in escalation process
Communication best practices:
- Always include claim number in subject line
- Keep communications brief and professional
- Ask specific questions (not “what’s the status?”)
- Document all communications in a tracking system
- Be persistent but never aggressive
The key: You’re helping move the process forward, not complaining it’s slow.
Strategy #4: Eliminate Supplement Delays
Supplements are payment killers because they reset the review clock. The key is making supplements as easy to approve as the original claim.
Supplement submission requirements:
- Photos of newly discovered damage
- Explanation of why not in original scope
- Updated documentation (moisture readings, test results)
- Clear connection to covered loss
- Revised estimate with changes highlighted
- Timeline showing when discovered during work
Pro tip: Submit supplements immediately when discovered, not as a batch at project completion. Adjusters can often approve minor supplements quickly, but multiple large supplements trigger audit reviews.
The golden rule: No surprises. If you think something might need supplementing, give the adjuster a heads-up before you hit them with additional costs.
Strategy #5: Leverage Direct Deposit and EFT
Physical checks add 5-10 days to your payment timeline through mail processing and bank clearing. Electronic payments arrive in 1-2 days.
How to set up fast payment:
- Request ACH/EFT payment in your vendor paperwork
- Provide accurate banking information with W-9
- Confirm electronic payment capability during first claim
- Keep banking information updated across all carriers
Why insurers like it too: Lower administrative costs, easier tracking, and fewer lost check complaints. It’s win-win.
Strategy #6: Build Adjuster Relationships (Yes, Really)
Adjusters are human. The contractors they trust and enjoy working with get faster service.
How to become a “preferred contractor” (without being unethical):
Be consistently professional:
- Respond promptly to requests
- Submit complete documentation
- Communicate clearly and respectfully
- Meet your commitments
Make their job easier:
- Detailed, justified estimates
- Proactive communication about potential issues
- Flexibility on minor scope disagreements
- Understanding of policy limitations
Show appreciation:
- Thank adjusters who process claims efficiently
- Acknowledge when they go above and beyond
- Professional courtesy even when you disagree
The insight: Adjusters have discretion in processing speed. The contractors they trust get moved to the front of the queue.
Strategy #7: Know When to Escalate (and How)
Sometimes claims stall despite your best efforts. Knowing when and how to escalate makes the difference between payment and frustration.
Escalation triggers:
- No response after 3 follow-up attempts (7-10 days apart)
- Adjuster requests information you’ve already provided
- Payment promised but not received after deadline
- Unreasonable scope reductions without explanation
- Clear policy coverage being denied
Escalation path:
- Adjuster’s supervisor
- Carrier’s claim resolution department
- Policyholder involvement
- State Department of Insurance (last resort)
How to escalate professionally:
- Document all previous communications
- Present facts without emotion
- Clearly state what you’re requesting
- Provide specific timeline for resolution
- Copy relevant parties without threatening
What NOT to do:
- Threaten legal action as first response
- Get angry or unprofessional
- Blast on social media
- Go over adjuster’s head on first minor delay
Strategy #8: Implement Internal Payment Tracking Systems
You can’t improve what you don’t measure. Track your payment cycles to identify patterns and bottlenecks.
Metrics to track:
- Average days from submission to payment
- Payment time by insurance carrier
- Payment time by adjuster
- Supplement approval time
- Percentage of claims requiring follow-up
- Reasons for payment delays
What the data reveals:
- Which carriers consistently pay slowly (factor into pricing)
- Which adjusters are most efficient (build those relationships)
- Which documentation gaps cause most delays (improve your process)
- Whether your follow-up timing is effective
The power: When you know the average payment time for Carrier X is 52 days but it’s been 60 days, you know to escalate immediately instead of waiting.
Strategy #9: Consider Assignment of Benefits (When Appropriate)
Assignment of Benefits (AOB) can accelerate payment but comes with tradeoffs.
What is AOB: Policyholder assigns their insurance claim rights to you, making you the direct payee. You deal with insurance directly without policyholder involvement.
Advantages:
- Faster payment (no policyholder middleman)
- Direct control of claim process
- Reduced collection risk from homeowners
- Simpler for customers (you handle everything)
Disadvantages:
- Some states restrict or regulate AOB
- May trigger additional insurance scrutiny
- Responsibility for any coverage disputes
- Potential for bad press if misused
When AOB makes sense:
- Property management companies
- Commercial properties
- Landlord-owned rentals
- Elderly or overwhelmed homeowners
- Large, complex claims
When to avoid AOB:
- State restrictions or hostile insurance environment
- Policyholder wants control
- Potential coverage disputes
- Small, simple claims
Strategy #10: Work With Claims Management Specialists
Here’s the uncomfortable truth: the contractors getting paid fastest aren’t doing it themselves.
What claims specialists do differently:
- Speak insurance company language fluently
- Know specific adjuster preferences and triggers
- Have established relationships with claims departments
- Understand policy nuances contractors miss
- Can navigate escalation paths efficiently
- Track and follow up systematically
The ROI calculation:
- Average claim payment: $15,000
- DIY time investment: 8-10 hours per claim
- Claims specialist cost: 8-12% of claim value (~$1,500)
- Time reclaimed: 8-10 hours @ $200/hr value = $1,600-$2,000
The math: Even paying a specialist, you’re ahead financially—plus you get paid 20-30 days faster, improving cash flow.
The Fast Payment Framework
Week 1: Submit adjuster-ready claim
- Complete documentation
- Strategic timing
- Professional packaging
Week 2: Proactive follow-up
- Confirm receipt
- Address questions immediately
- Build adjuster relationship
Week 3: Strategic escalation (if needed)
- Document all communications
- Professional escalation path
- Involve stakeholders appropriately
Week 4: Payment received
Most contractors wait 45-60 days. Follow this framework and average 25-35 days instead.
Stop Financing Insurance Companies
Every day your claim sits unpaid is another day you’re providing free financing to insurance companies while your working capital shrinks.
The difference between 60-day and 30-day payment cycles? That’s an extra $250,000+ in working capital for a contractor doing $1.5M annually. Money you could invest in equipment, marketing, or simply peace of mind.
Ready to get paid in 20-30 days instead of 60-90? Smart Claims™ specializes in accelerating insurance payments for restoration contractors. Our team knows exactly what adjusters need, when to follow up, and how to escalate effectively.
Submit your claim to Smart Claims™ and stop waiting for your money.