FAQ: What is an insurance company's preferred vendor?


Insurance companies’ preferred vendors are contractors who get substantial work from insurance companies. They are frequently willing to do so for smaller profits and less overhead than their local competition which can impact the quality of their work. They are also likely to support insurance company adjusters when faced with decisions like whether to repair versus replace or clean versus replace. They will likely choose the least expensive method. Be careful if you’re thinking about hiring a preferred vendor.

Tip: Ask the insurance company to actually hire them because once you sign the contract, if something goes wrong, the insurance company’s adjuster could point out that you hired them, not the insurance company. If they are unwilling to actually hire them, ask yourself (and a trusted advisor), why not? This is all unfamiliar territory for you so get smart. Get educated. Get the most...by hiring the best.

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