Esurance Settles Assignment of Proceeds Cases with New York Body Shop - BodyShop Business

Esurance Settles Assignment of Proceeds Cases with New York Body Shop

"Short pay" claims totaling more than $6,000 settled with Nick Orso's Body Shop for repair items such as OE vs. aftermarket parts, P-page omissions, labor rate and paint material caps.

Mike Orso, president of Nick Orso’s Body Shop in Syracuse, New York, has announced that Esurance has settled various “short pay” claims totaling more than $6,000 with his shop for various repair items, including OE vs. aftermarket parts, P-page omissions, labor rate and paint material caps. The claims were the result of “assignment of proceeds” collections customers had assigned to Nick Orso’s.

“The outside council of Bousquet-Holstein PLLC handled this collection and did a great job," said Joseph Talarico, Orso’s attorney. "I think it comes to a point where some insurance companies realize we have sound cases based on sound legal merit and a staff of attorneys and paralegals who won’t give up. The mere fact that they’re incurring legal expenses added to claims they owe for is absurd. After five years of processing these claims, I believe it continues because very few shops have a system to document shortages and pushback."

Added Mike Orso, “In one of these cases, the insurer sent out an appraiser who actually negotiated and left his appraisal at the shop with an agreed price. A week later, I got a new estimate and check for an amount based on a re-written, in-house desk appraisal for $2,000 less than the agreed price. I phoned them and they said the field appraiser had ‘no authority’ to settle claims and basically told me, ‘Take it or leave it.’ Maybe other shops would fold. In New York, the person inspecting the vehicle on behalf of the insurer must enter into negotiation to settle the claim. Game-set-match – as you can see, it didn’t work out well for them.

“Many companies, at least the smarter ones, now negotiate and settle the claims. We’ve successfully settled hundreds of thousands of dollars in cases. More than $1 million in new assignment collections were filed in April. Some companies just don’t get it. It appears their attorneys are letting the meter run and having a grand old time. We’re not the bad guys. When they don’t respond to a ‘Notice of Deficiency’ or address all the repair needs, it’s over. I want the insurance company to pay the bill fairly. Insurers have been getting away with this nonsense for way too long. The jig is up.”  


More information:

New York Body Shop to File $1 Million-Plus Worth of Short Pay Suits

You May Also Like

Survey: Independent Repair Shops View Vehicle Data Access as Top Issue

Auto Care Association survey shows 84% of independent repair shops view vehicle repair and maintenance data access as the top issue for their business.

The Auto Care Association has released results from a new nationwide survey of repair shops highlighting the challenges that independent repair facilities face when servicing vehicles, often forcing them to turn away business. These new survey findings, the Auto Care Assocation believes, reiterate the immediate need for the bipartisan REPAIR Act, which would ensure that vehicle owners and repairers of their choice have access to the vehicle data, tools, and software required to maintain modern vehicles.

Chicagoland CARSTAR Continues Support of Lincoln Tech

Chicagoland CARSTAR sponsored an educational booth at the Lincoln Tech Spring Career Fair for the ninth consecutive year.

CCC Launches New Intelligent Experience (IX) Cloud Platform

CCC IX Cloud will help customers focus on the claims, repair decisions and actions that will have the greatest impact on their business. 

Evercoat to Hold Free Webinar on Gel Coat Repairs

“Troubleshooting Gelcoat Repairs” will take place on April 11, 2024 at 2 p.m.

CIECA to Hold Webinar on New API Standards

The webinar will be held on Thursday, April 25 at 2 p.m. EST.

Other Posts

I-CAR CEO & President Announces Retirement

John Van Alstyne plans to retire in 2025 after a successful 15-year tenure.

Crash Champions Acquires Buddy Foster Collision, Expands Tampa Market

Crash Champions has announced the expansion of its Tampa service with the acquisition of Buddy Foster Collision and Towing in Zephyrhills, Fla.

ASE Education Foundation Seeks Outstanding Instructor for 2024 Byrl Shoemaker Award

The award recognizes a high school or college instructor from an ASE-accredited automotive, diesel/truck or collision repair program.

Crash Champions Acquires Oregon MSO Premier Auto Body

Crash Champions has acquired Oregon-based Premier Auto Body and its three locations.