Frequently Asked Questions
All About Cost Recovery
Below you'll find the most commonly asked questions regarding Cost Recovery, how it benefits participating agencies, and the ways Covenant Solutions can help you generate much needed money for your department.
If your department responds to motor vehicle accidents/fires, structure fires, or hazardous materials incidents, there may be insurance funds available to reimburse your department for these services.
Here’s how it works. When you respond to an incident, you furnish Covenant Solutions the standard information from your run report. This information can be submitted via email, fax or our website. We then work on your behalf to process a claim with the appropriate insurance company(s). Covenant Solutions receives a percentage of the total amount collected for your department.
There is never any charge unless Covenant Solutions collects for you!
The number one issue concerning fire rescue cost recovery today is is it
legal? Fire Service incident response “cost recovery” is legal in every State in some form.
There are variations and limits that can come into play, based on
Federal law, State law, Local law, and ultimately the insurance policy itself. It is important to understand that each State can have different guidelines regarding the issue of cost recovery.
In most States there are not yet any specific laws in place to address cost recovery, so the issue is decided on the local level (home rule). You will want to become aware of any State and local guidelines that may exist before you proceed and how they may address the cost recovery issue.
Covenant Solutions of course will be happy to provide available information for your State.
No! Fire response Cost Recovery practice began in the late 1700s when Benjamin Franklin organized one of the earliest fire insurance endeavors in Philadelphia and reimbursed local fire companies for their response. The concept has evolved over the years to include recovery for many other types of responses such as haz-mats, MVAs, gas-main events and so on.
Thousands of departments and rescue squads across the country are utilizing cost recovery and the number increases daily! More and more departments are enjoying relief from funding worries, by choosing Cost Recovery as a viable funding option!
Covenant Solutions currently serves over 750 departments across our nation in 30 states.
Each department’s reimbursements vary depending on factors such as your State Fire Marshall’s recommended fee schedules, the number and make-up of incidents, as well as the type of motor vehicle/homeowner insurance policy and coverage’s available.
Covenant Solutions can compare your stats to departments with similar stats in your state, to give you an average of what you could expect to receive monthly.
You are in control of and set your own fee schedule! We do provide you with a recommended fee schedule that works very well for many of our clients!
Covenant Solutions acts as your agent in recovering the costs your department incurs while providing services.
Your department’s reimbursement rates ultimately are established by you. We will diligently seek reimbursement for the fee schedule set by your department.
Of course! We only want your business if you are 100% satisfied with our services. You may discontinue the relationship with Covenant Solutions at any time. We do have a flexible contract available if preferred.
When there isn’t a federal or state law addressing an issue, local communities and municipalities may pass local laws that do. Cost Recovery is commonly addressed as such.
Because State and Federal laws can be subject to change, Covenant Solutions maintains access to a large network of attorneys, allowing us to stay current at all times, on all issues and levels (State and Federal).
- Pass an ordinance or resolution (recommended, if needed);
- Fill out a department info form & W9 form;
- Submit your forms and you are ready to begin sending run reports for processing! (a specialist will walk you through the process step by step!).
America's Fire Service Cost Recovery Experts.
Contact Covenant Solutions
Huntsville, AL 35803
Corporate Mailing Address
Toll Free Fax: 866-879-3506