By Joseph P. Leverich, CPA

My construction company has been fortunate enough to snag some long-term contracts over the last few years. In a couple of instances, our job sites were hit by natural disasters. Although our insurer partly covered us, I feel as if we lost money on soft costs that our adjuster successfully disputed. Do you have any suggestions on how to tighten up our claims process?

Many policies cover soft costs (such as property taxes owed on the site or interest due on applicable construction loans) but, as you imply, insurers often look to shave a few dollars from their own obligations by disputing claims. Here are some ways to put yourself in a better position to recover as much as possible under your policy:

Record everything. At regular intervals during a project, photograph and videotape key areas of the job site. This way, after a damaging event occurs, you can take pictures and video that clearly show how a given area was affected.

Live action video of a job site can prove particularly difficult to dispute. In some rare cases, you may even be able to record a damaging event while it's happening. Naturally, you should never compromise safety precautions to do so.

Write it down. Keep up with your daily log. Failed insurance submittals are a good example of why contractors need to consistently document everything that happens on a job site in great detail. And it's easy to let your logging slip as you try to keep up with all the comings and goings of a project in progress.

Make sure that whoever is filling out your log describes what job progress has been made and what hasn't — and why. Also, every day, note who is on-site (subcontractors, consultants, and so forth) and what meetings take place. Should a damaging event occur, spend extra time describing in writing precisely what took place.

Beware of chit-chat. Undoubtedly, it's important to maintain a good working relationship with your insurance adjuster. But verbal communications can often mislead you into thinking your coverage is a slam-dunk or that you've clearly proven damages that later get disputed.

When you meet with an adjuster or speak with him or her over the phone, document in writing what occurred during the conversation. Then send the adjuster an e-mail or letter with your impressions of the call and ask for verification that you're both on the same page. For face-to-face meetings, bring with you all of the documentation mentioned above as well as pertinent charts, graphs and other supporting information, such as contracts and loan agreements.