Managed Repair Program
A managed repair program is a carrier-administered network where the insurance company directs policyholders to pre-approved contractors who agree to work within the carrier's pricing, scope, and quality guidelines.
Carrier-Controlled Repair Networks
A managed repair program is a system where the insurance carrier directs policyholders to a network of pre-approved contractors who have agreed to work within the carrier's pricing guidelines, scope standards, and quality requirements. The carrier assigns claims directly to contractors in the network, and the contractor repairs the property according to the carrier's specifications. The carrier handles the estimate, the homeowner pays their deductible, and the contractor receives payment based on the carrier's scope.
For contractors, managed repair programs offer consistent deal flow in exchange for accepting carrier-controlled pricing.
How Managed Repair Programs Work
Contractors who join a managed repair program agree to the carrier's terms: specific pricing (often at or near Xactimate pricing without overhead and profit), scope limitations, quality standards, response time requirements, and customer satisfaction metrics. In return, the carrier sends claims directly to the contractor without the contractor needing to generate their own leads. Some programs also offer faster payment processing and guaranteed volume.
The carrier typically uses a third-party administrator to manage the program logistics, including contractor onboarding, quality audits, customer satisfaction tracking, and payment processing.
Evaluating the Trade-Off
The decision to join a managed repair program comes down to volume versus margin. Program work provides steady, predictable deal flow that reduces marketing costs and fills crew schedules. However, the margins are typically thinner because the carrier controls pricing and limits supplement opportunities. Contractors need to run the numbers for their specific market: does the volume of program work at lower margins outperform fewer independently sourced jobs at higher margins? The answer varies by market, crew capacity, and business model.
Frequently asked questions
They are similar but differ in control. A managed repair program is more structured, with the carrier controlling pricing, scope, and assignment. A preferred vendor program is typically a referral network where contractors have more autonomy over scope and pricing.
No. Joining is voluntary, but contractors in the program receive direct claim assignments from the carrier. The trade-off is accepting the carrier's pricing and scope guidelines, which may be lower than what the contractor could negotiate independently.
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