“There are anti-assignment clauses in insurance policies which prohibit a policyholder from assigning his rights under the policy. Hence, the assignment of proceeds,” he said.
In the event you have to go to court, Parese said, “Bring the signed authorization and final invoice to court – those are two essential documents. Most of the shops [his clients are] working with are making more money as a result of suing on short pays. These things reverberate like you wouldn’t believe”
However, don’t expect to win every case. “Some magistrates spent their careers in the insurance industry,” Parese said. “Small claim judges don’t want big trials. If you have a first-party claim, I would just serve the papers on the insurance department. Once you go to bat a few times, they just pay you.”
Parese showed the group his firm’s small claims intake sheet. He also showed them a stamp for the back of an insurance check in payment of a claim one would consider a short pay. It reads, “Accepted under protest as a partial payment only for property damage.”
Parese says by stamping the check with that language it shows that there was never a deal made between insurance company numbers and your shop.