Can an Insurer Pay Insured’s Contractor Directly, Even When There Is a Dispute Regarding the Contractor’s Work?

VICTOR JACOBELLIS | July 24, 2019

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Always double check the insured’s contract with a contractor doing repair work for a claim. The California Court of Appeal recently ruled, in Jozefowicz v. Allstate Insurance Company, that an insurer can directly pay a contractor when the contract provided that the contractor was appointed as the insured’s representative in fact to endorse and deposit insurance checks. The court came to this conclusion despite the fact there was a dispute over the contractor’s work.

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IAT Insurance Group

IAT Insurance Group (IAT) is a specialty insurance company headquartered in Raleigh, North Carolina, providing a wide range of property and casualty insurance products to meet the needs of individuals and businesses. IAT consists of seven operating divisions, each sharing the same quality standards, commitment to service and innovation, and an overall mission of excellence. As an organization, we leverage our experienced leadership, sound analytics, proven operating platforms and extensive risk capabilities across the entire enterprise to deliver specialized, sustainable solutions for our customers.

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