Adam Bensman (YouTube, Aug 8, 2024) warns roofing salespeople and contractors that using "advertising bonuses" or sign allowances to cover homeowners' insurance deductibles can be illegal and lead to criminal charges. He recounts being taught to commit fraud early in his career, explains that Florida's 2021 SB 76 prohibits contractors from paying or rewarding homeowners related to insurance claims (including paying deductibles), and cites a Web Roofing case where the company faces nine felony counts of fraud and up to 45 years in prison for using advertising agreements to rebate deductibles. He notes similar legislation/efforts in Louisiana and Minnesota, advises salespeople to take action (raise issue with leadership or leave the company), and points viewers to the Roofing and Solar Reform Alliance for help.
Questions this video answers
August 8, 2024.
SB 76 (Florida, 2021).
Nine felony counts of fraud, facing up to 45 years in prison.
Adam Bensman.
Chapters
I want to expose the truth behind using advertising bonuses or sign allowances as a creative way to eat deductibles. I'm making this video for the people in sales who've been trained to do something not knowing the consequences. You know what happened to me? My very first interview in this business, which, by the way, I share this story in my book, the Roofing Sales Survival Guide. I sat down on an interview, this guy talked to me for 20 minutes, didn't ask me a question, sold me on how much money I'd make, why should work with him, and. And then in very intricate detail, taught me how to conduct insurance fraud. Proudly, by the way. So needless to say, I didn't work for him. I worked for someone else, but I didn't know what I didn't know. Now, that, by the way, was pretty overt, but this little sign allowance thing isn't. And sadly, I run trainings, which I've run over the country. And a large portion of my training is focused on overcoming the deductible objections. I don't want to pay my deductible. The other guy said he'd eat it. So I have an entire presentation and process teaching contractors and salespeople how to beat these objections, including using actual legal references like HB 2102, which is Texas's state law that homeowners have to pay their deductible. And surprisingly, I had this group of three salespeople that are brand new come up to me after the training. They're like, Adam, I was taught to do this. I had no idea it was illegal. So I made this video for you. If this video comes as a surprise, you have two choices. Number one, bring this video to your leadership team. Hopefully you guys can turn things around. Or number two, it might mean that you need to find a new company to sell for. And if that's the case, click the link in the description. I'd be more than happy to connect you with a member of the Roofing and Solar Reform alliance. And if they're interested, they'll reach out to you. Again, there's a link in the description. So let's jump into today's video. Just a quick welcome or welcome back. Adam Bensman here and everything I do on my channel is designed to help you and your team outsell, outgrow, and out compete the rest so we can stomp the scum out. Now let's get started. Roofing sales is personal development in disguise and the reward for growth is life changing. I hope my content helps you create a richer life and bank account. All right, for the purpose of this video, we are going to turn our attention to Florida. Now, why Florida? Because in 2021, Florida passed a law called SB 76, which made it illegal for contractors to be pay or reward homeowners in any way, shape or form regarding an insurance claim, which means you can't pay a deductible. You can't pay a referral fee even. You can't pay for a roof inspection. You can't induce them to file a claim. But what we really want to nail down here is that you can't pay a homeowner's deductible. By law, they have to pay it. So what happened here in this case that you're seeing on the screen, Web roofing, what they ended up doing is getting in trouble. They are facing up to 45 years in prison for nine felony counts of fraud. I'm going to repeat that. Nine felony counts for fraud. And what they did was this. After the claim was filed, they would, quote, have them, the homeowner, sign an advertising agreement in exchange for waiving their deductible. Web roofing would then rebate or credit the amount of the deductible towards the cost of the claim, which is illegal under Florida law. Now, this Florida law, SB 76, has become the backbone of case law, which is now being rolled out in two additional states in the United States. Started with Louisiana, which it passed with flying colors, and then Minnesota. Because this wave of we're successful here, let's get successful in another high claim state like Louisiana, and then another one like Minnesota. So where will it go next? I can only predict, but your prediction is probably as good as mine. The highest claim states. I believe it's only a matter of time until this legislation sweeps the nation. So. So what is the key takeaway here? It is illegal for you to be using a sign allowance. And I know that. I'm going to see comments below. It's not illegal here. And if I do it this way, and what people are doing is finding these creative workarounds and solutions, what I implore you to do is to really think critically. Do you want to find creative ways to give away money, or do you want to find creative ways to serve customers the right way and get paid what you're worth and sleep well at night? So if you want help learning how to help homeowners out with their deductible the legal way, then watch this very next video. And I can't wait to see in the next one. I hope this helps clear out the mystery so we can all operate above board and rise the tide of the roofing industry at large. We'll see you soon.
