Is it legal for an insurance company to force one of their policyholders to use a certified vendor for them other than a contractor of their choice?

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Is it legal for an insurance company to force one of their policyholders to use a certified vendor for them other than a contractor of their choice?

I have a client that I have done work for before that wants me to give them a quote on some insurance water damage policy claim that they have and their claims adjuster is stating that they cannot use me they can only use people that are certified vendors with them and they chose the contractor who they wanted to do the work.

Asked on October 7, 2019 under Insurance Law, Georgia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

It is legal if the insurance policy with the insured states that the insurer has the right to determine who can do the work: the policy is a contract between the insurer and the insured and determines their rights and obligations. The insurer only has to do or pay what the policy says it must, when it must, and the insured must comply with it to get his/her payment. So if the policy gives the insurer the right to determine who can do the work, that is legal.


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