Customer Property Damage Protocol

Purpose

Define the consistent procedure for handling accidental damage to customer property during service work. The way damage is handled determines whether the customer becomes a permanent loyal customer ("they handled it right") or a permanent negative reviewer ("they damaged my house and tried to deny it"). Damage happens; the response is everything.

Scope

This SOP applies to any incident where:

• A technician damages customer property during service work
• Customer reports damage they believe was caused by the visit
• Equipment failure during installation causes downstream damage
• Tools left behind, used incorrectly, or that damaged property
• Any incident where the customer's property is not in the same condition after the work

Roles and responsibilities

Procedure

Step 1: Stop and assess immediately

When damage occurs:

1. Stop work immediately
2. Take photos / video of the damage
3. Take photos of the surrounding area to establish context
4. Document the time and circumstances

Do NOT:

• Continue work as if nothing happened
• Try to hide or minimize the damage
• Leave without telling the customer

Step 2: Notify the customer immediately

While still on site:

• Find the customer
• Show them the damage
• Acknowledge responsibility (if appropriate) - "I'm sorry, I damaged this when I was working on [task]"

Three principles:

1. Honesty: tell the truth about what happened
2. Promptness: tell them now, not after they discover it
3. Ownership: don't blame the customer's property or other circumstances

Avoid:

• "It was already like that"
• "You shouldn't have stored it there"
• "I'm not sure how it happened"

Step 3: Notify your office / supervisor

Within 1 hour:

• Call dispatch or supervisor
• Report what happened
• Describe the damage
• Send photos
• Customer information

The office uses this report to:

• Notify the insurance carrier (if needed)
• Document the incident for company records
• Coordinate the response with the customer

Step 4: Initial response with the customer

Before leaving the customer's property:

1. Acknowledge the damage
2. Explain the next steps
3. Provide a specific timeline ("our office will call you within 24 hours")
4. Provide direct contact for follow-up

The customer needs to know what to expect; vagueness creates anxiety.

Step 5: Assessment of damage cost

The contractor's office or service manager assesses:

• Repair vs replace decision
• Cost estimate
• Insurance claim or out-of-pocket
• Customer's deductible (if it's a customer claim)
• Subcontractor needed (carpenter, painter, etc. for specialty repair)

Step 6: Insurance involvement

For damage above the small-claims threshold your carrier publishes (often the same range as a typical homeowner deductible):

• Notify general liability insurance carrier
• Provide all documentation
• Let the insurance adjuster work with the customer

For smaller damage:

• Often handled out of pocket
• Faster resolution; better customer experience
• The cost of insurance claim handling and premium impact often makes out-of-pocket cheaper

Step 7: Customer communication after assessment

Within 24 hours:

• Call the customer
• Explain the resolution plan
• Provide timeline
• Get customer agreement on the plan

Specific information:

• Who will repair (us, sub-contractor, customer's contractor of choice)
• When (specific date)
• How (specific method)
• Cost (covered by us, by insurance, or specifics)
• Any inconvenience to the customer (need access, temporary disruption)

Step 8: Execute the repair

• Repair on schedule
• Match the original (color, style, finish)
• Verify with customer
• Document completion

Step 9: Follow-up

After repair:

• Confirm customer satisfaction
• Address any additional concerns
• Document the closure in the customer file
• Capture customer feedback on the handling

Step 10: Internal review

Within a week of resolution:

• Review what happened with the tech involved
• Identify the cause (tool issue, technique issue, customer environment issue)
• Identify prevention measures
• Document for company learning

Types of damage

Direct damage from work

• Damaged drywall during ductwork or wiring
• Damaged flooring from dropped tools or equipment movement
• Damaged plaster or tile from work area
• Damaged cabinetry from equipment removal

Indirect damage from work

• Water damage from incorrectly installed plumbing
• Smoke / soot from incorrect equipment operation
• Damage from misrouted ventilation
• Damage from chemical spill or splash

Damage from negligence

• Tools left where they damaged property
• Customer's property knocked over during work
• Customer's vehicle scratched in driveway during work
• Customer's pet harmed (rare but real)

Damage that's actually pre-existing

• Customer points to damage they think we caused; we didn't
• Difficult diagnosis without before-photos
• The original walk-through photos help

Pre-work walkthrough

To distinguish pre-existing from caused-by-work damage:

• Before any work begins, walk the work area with the customer
• Photograph notable conditions
• Note any pre-existing damage in writing (or with photos)
• Have the customer initial or sign the walk-through

This documentation protects against false claims of caused damage.

When customer claims damage we didn't cause

Sometimes customers attribute damage to a visit:

• They notice damage they hadn't before
• They assume we caused it
• They request repair or refund

The right response:

1. Listen to the claim
2. Walk through the area with the customer
3. Inspect carefully
4. Show the pre-work walkthrough photos if available
5. If we caused it, follow the damage protocol
6. If we didn't, honestly explain the evidence

Some customers will accept the honest explanation; some will not. The handling protects the contractor's reputation and protects against fraudulent claims.

Insurance coverage

The contractor's general liability insurance covers:

• Property damage caused by the contractor's negligence
• Property damage caused by completed work (e.g., a pipe joint fails 6 months after install)
• Personal injury caused by the contractor

The policy has limits and deductibles. Verify the policy covers the typical types of damage your trade encounters.

For damage that exceeds general liability limits, umbrella coverage may apply.

Documentation requirements

For every damage incident:

References

• Standard General Liability Insurance policy provisions.
• BBB standards for contractor service practices.
• Customer protection laws (state-specific).
• Manuall internal: Universal Customer Trust After Mistake, Universal Customer Conflict De-Escalation.