Hi there, The question says it all. We are a new water restoration company in Florida and we are trying to find the best path to getting paid faster. I understand that the Assignment of Benefits is one option for us. I also understand that lien rights are important. Under what situations should I use lien rights? When should I use Assignment of Benefits? Thank you for your help.
With the new assignment of benenfits statute that went into place last year, you do have to choose. First and foremost, you should consult with an attorney who can give you advice specific to your situation and who can help you draft contracts that contain appropriate provisions. If you decide to use an assignment of benefits, the new AOB statute contains many limitations and provisions that need to be included in any contract. Plus, once the AOB is in place, you generally do not have a lien right on the property. In contrast, if you use a more traditional contract with direct payment provisions, you can still have the benefit of being paid directly by the insurance company (at least in theory) and you can retain your lien right. In my experience, the lien right is more likely to lead to payment ultimately than the assignment. But that deterimination is fact dependant. Feel free to reach out if you have any other questions.
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