1. The Experts Bill – Adjusters, Attorneys and Experts “Walking a Tightrope” By: Steve Hunt, CPCU, ARM President & Senior Safety Consultant The Warren Group, Inc.

2. The Experts Bill – Adjusters, Attorneys and Experts “Walking a Tightrope”

3. Talking about money

4. Introduction Delays in payment of experts can cause frustration and extra work on the part of all parties involved in a matter. This session will focus on understanding the reasons for delays and what systems and procedures employed by the varying parties can be utilized to improve outcomes.

5. Why do delays occur? Delays can be due to not understanding the process, systems and procedures Vary by Experts, Law Firms and Insurance companies Everyone has a unique system Delays can be due to inadequate or ineffective communications Oral Written

6. Causes of Delays Client/ Payer Multiple layers of approval Personnel changes Centralized payables Central scanning Workload – can’t get to it! Someone in the chain sitting on the bill Questions about the bill

7. Impact of Delays Experts Strained Financials Pre paid Expenses Payroll / Staff / Personnel costs Extra Expense Extra work Frustration

8. Impact of Delays Expert Expense Analysis: Compensation/ Benefits 70.0% Facilities/ Rent 12.0% Marketing 3.0% Taxes/ Licenses/Insurance 2.0% Tools/ Supplies/Vehicles 4.0% All other 9.0%

9. Impact of Delays Experts Ability to acquire equipment Maintain staff Growth – ability to add new engineers’ capabilities. Finance charges / Cost of capital

10. Impact of Delays Clients/Payer: Extra work Frustration Relationships Case Management Creditability

11. Case Study South American Tango

12. No Ticky - No Laundry Case Study

13. “I am in charge here” Alexander Haig Case Study

14. Dave’s not here, Man” Case Study

15. The Billing Frenzy Case Study

16. What is Reasonable or Unreasonable? 30 days from invoice? 60 days from invoice? 90 days from invoice? 120 days from invoice? 360 days from invoice?

17. Accounts Receivable Metrics Who are the best and worst performers? Insurance cases Subrogation cases Defense cases Plaintiff cases

18. Accounts Receivable Metrics Average account paid in 57 days A few get strung out over a year 80 - 20 rule

19. What can be done? Experts Critical Information for the invoice Claim or matter number Payer Addresses Case Budget Determine key person in the chain Clarify scope of work, expenses and people Send report or work product with report where appropriate Time entries should adequately reflect time and expense incurred

20. What Can be done? Experts Approved Vendor lists Verify process Verify contacts and addresses on case intake Budget for work in increments Written Agreements with terms Fee and expense schedule

21. What can be done? Experts Invoice frequently Send copies of invoices Communicate about invoices regularly Call, Call, Call E-mail, E-mail, E-mail

22. What can be done? Attorneys and Adjusters Check invoices for required information Review invoices for accuracy Communicate about invoices periodically Act on invoices promptly

25. Problems are Opportunities If we can: Improve our Systems, Processes & Procedures It will lead to: Improved morale Improved client satisfaction Reasonable payments

26. Conclusion Don’t avoid dealing with money Do it upfront, in advance and throughout a case It’s good business