Third-Party Administrator

More claims & insurance terms

• Surety Bond

  A guarantee from a bonding company that pays if a contractor fails to finish the job or fails to pay what they owe. It is not the same as insurance and does not cover the contractor's own mistakes. What it protects, and who can claim on it, depends on the state and the contract.

• Temporary Repairs

  Work done right after a loss to stop more damage, such as tarps, board-up, or a dry-in, before the permanent repair is approved. Policies generally require the owner to prevent further damage, and reasonable emergency costs are usually reimbursable. Photograph and receipt the work, since carriers often pay it separately.

• Total Loss Determination

  A decision that repairing the property no longer makes sense, so the claim is settled as a total loss rather than a repair. The threshold differs by policy and by state, so do not assume a fixed percentage. After the declaration, the settlement usually follows the policy limit and coverage form, not the repair estimate.

• Umbrella Policy

  An umbrella policy is extra liability coverage that sits above your general liability and auto limits and pays after those limits are used up. Contractors should know an umbrella usually covers liability claims, not damage to the work itself, and carriers may require proof of it before they sign a contract.

• Umpire

  An umpire is the neutral third party chosen when you and the insurer each pick an appraiser and those two cannot agree. The umpire decides the disputed amount with them, and because the choice is usually made by the two appraisers or a court, agree on who picks and who pays before you start.

• Underpayment

  An underpayment is a claim payment that covers less than the scope of work you can document, whether from missed line items, wrong quantities or a pricing difference. The fix is evidence: photos, measurements and code or manufacturer requirements tied to specific line items, then a written request for the difference.

Common questions