Insurance Restoration - You're Now The Bank!
9 Mar 2026 · 1 min
1:29
In this video segment, Jim Johnson addresses insurance restoration contractors about the dramatic increase in the time required to close insurance claims—from the typical 60 days to 120‑180 days. He explains that this extension forces contractors to finance the work themselves, effectively turning them into banks that must float money while waiting for insurer payments. The prolonged cash‑flow gap can lead to financial strain, the need for loans or lines of credit, and even business failure. Johnson also highlights that insurers benefit from longer claim cycles because it reduces their own payout costs, creating a conflict of interest that discourages contractors from taking on restoration work.
