What Is a Preferred Vendor?

4/13/2022 (Permalink)

Office drying in Bay City, WI.

With a big commercial disaster claim, there’s often a lot on the line. Everyone involved, from the property manager to the business owner to the commercial property insurance agent, has an interest in making sure that the restoration work is completed competently, on schedule, and at a fair price. In many cases, this is most easily accomplished by using the insurance company’s preferred vendors.

What Is a Preferred Vendor?

Insurance companies have extensive experience handling disaster-based claims and working with various disaster recovery companies. Over time, some restoration companies begin to stand out as consistently delivering quality work and reasonable estimates on time. Insurance providers often designate such restoration companies as “preferred” vendors.

How Does a Preferred Vendor Program Work?

Most commercial insurance companies have some sort of process for selecting vendors for preferred status. Typically, these vendors must meet exacting guidelines for quality and performance to be selected as preferred vendors. Insurance companies ordinarily monitor these vendors to ensure that they continue to consistently meet these standards and maintain compliance with all requirements. For an insurance agent, working with a preferred vendor usually means a shorter turnaround time for approving estimates, since the vendor’s billing practices have already been approved by the insurance provider.

How Does SERVPRO Ensure Compliance?

SERVPRO is not only one of America’s largest restoration companies, but also has some of the industry’s highest internal performance standards. Every franchise must comply with 21 different performance guidelines, covering such matters as:

• minimum insurance requirements
  
• employee background checks
  
• bookkeeping and data reporting procedures
  
• equipment training and maintenance
  
  

These extensive requirements help ensure that every franchise continues to live up to the company’s high standards for quality and professionalism.

In the aftermath of a disaster in Bay City, WI, working with a respected and reliable preferred vendor typically makes things easier for the assigned insurance agent. The result is that restoration begins sooner, which is good news for the property owner as well.