Use of the word FREE in advertising

Scout Stephens

New Member
Jurisdiction
Kentucky
I have a question regarding the use of the word FREE in advertising.

I was advised of a marketing strategy for my contracting services following a storm of some sort where we would market the installation of tarps on customers roofs who have damage. This is an expense that is almost always covered by the insureds insurance carrier when they file a claim. Full disclosure, I am an insurance adjuster.

The signage I assume would say something like FREE TARP or something like that, with an * and what I assume would need to be some sort of disclosure language at the bottom...along the lines of if you are filing an insurance claim, the expense of tarping a roof is generally reimbursed by insurance carriers, the actual cost of the tarp payable upon installation is X.

My thought from a business standpoint is that if we can get our foot in the door, we can explain to the consumer what is generally covered by a carrier as it relates to temporary repairs and provide them with a receipt to give to their adjuster, but I do not want to get stuck in a "well they said" situation if for whatever reason the carrier doesn't cover it.

I guess I'm just wondering if there is language to protect us we can use while also deploying this marketing strategy.

Thank you in advance for your replies both from a legal and consumer standpoint.
 
I was advised of a marketing strategy for my contracting services following a storm of some sort where we would market the installation of tarps on customers roofs who have damage.

Advised by whom?

I'm not really following what you're asking, but large text that says "FREE" with small text that explains that it's not really free would likely be regarded as misleading.
 
I guess I'm just wondering if there is language to protect us we can use while also deploying this marketing strategy.

From a legal, professional, and for many other common sense reasons; just don't do it.

I could bore you with the exact reasons why, but that would bore me, too.

During widespread disasters, even certain localized one, states have laws against what you propose.

Those laws can be very life altering to those convicted of certain crimes.
 
Advised by whom?

I'm not really following what you're asking, but large text that says "FREE" with small text that explains that it's not really free would likely be regarded as misleading.

Advised is probably not the correct word, more of just a discussion regarding strategy.

We see contractors all the times after storms with signage that says FREE ROOF etc.. Their basis/scam is they will do the roof and not charge the homeowner a deductible which is clearly insurance fraud but they promote the roof as free because technically the homeowner isn't using their own funds to pay for it (if they don't charge them a deductible). Again, the deductible portion is a whole other legal issue not applicable to our business.

Would language like "with an approved insurance claim" or something along those lines be applicable.
 
Maybe signage along the lines of "Insurance Tarps" ?

If a homeowner has damage, their contract with carrier requires them to present the risk from further damage. We're trying to create a niche where someone other than a high pressure storm chasing roofer performs this service while also I guess educating, not sure that's the right word, the consumer on the corresponding policy language.

I want to find a way to provide the service without saying the wrong thing I guess.
 
I want to find a way to provide the service without saying the wrong thing I guess.


You're doing that today, aren't you?

I just suggest you keep doing it.

You might simply offer discount on price, while not discounting quality service.
You could say that you will beat any other legitimate offer by 5%.
Discounts do drive business, and you still make money with volume.
You counter that by saying, you discount the price, but not the quality of the product.
 
I want to find a way to provide the service without saying the wrong thing I guess.

I'm guessing that you are a public adjuster or you wouldn't have to contemplate lying, cheating, and defrauding a property owner.

A "free tarp" is not free if insurance pays you for it no matter how you spin it.

It's "free" if you install it as a public service and collect no money from anywhere at all.

I won't get my hopes up that a public adjuster would understand the distinction.

If your defense is that roofers are offering "free" roofing because it's covered by insurance then they are frauds just the same.

If you are wondering what got my dander up, it's because I spent years battling inflated claims perpetrated by public adjusters. I had a lot of unhappy customers that found out they got 15% less than it cost to repair their damage because that's what the public adjuster took. They didn't realize what they were falling for when they signed the public adjuster's contract.
 
Last edited:
I'm guessing that you are a public adjuster or you wouldn't have to contemplate lying, cheating, and defrauding a property owner.

A "free tarp" is not free if insurance pays you for it no matter how you spin it.

It's "free" if you install it as a public service and collect no money from anywhere at all.

I won't get my hopes up that a public adjuster would understand the distinction.

If your defense is that roofers are offering "free" roofing because it's covered by insurance then they are frauds just the same.

If you are wondering what got my dander up, it's because I spent years battling inflated claims perpetrated by public adjusters. I had a lot of unhappy customers that found out they got 15% less than it cost to repair their damage because that's what the public adjuster took. They didn't realize what they were falling for when they signed the public adjuster's contract.

Definitely not a public adjuster :) they suck, and definitely not trying to defraud anyone. Just exploring a marketing strategy. I don't want to be labeled any of the things you mentioned, nor "ripoff" the homeowner. They will have the service done by someone, I'm just trying exploring the best way to get to the consumer to be that person.
 
I think it is a reasonable implication in my prior response that there are ways to do what you're contemplating that would not be misleading. It is, however, impossible to assess something like this in the abstract, and just because others are doing similar things doesn't mean they're not running some risk.
 
Generally under federal and state consumer laws, if you say in big print that the item is "free" then it had better mean you'd provide it at no cost to the customer — whether or not insurance pays for it. Putting in small fine print that you'll charge $X dollars and that "typically" insurance covers this is likely to be considered misleading.
 
Definitely not a public adjuster

If you aren't a public adjuster what are you that would put you in a relationship with a homeowner where you would put up the tarps and expect some sort of compensation?

My cat adjusters and my independent adjusters got paid by my company to go out, take pictures, figure up the repair costs and report back to me so I could pay the claim. None of them ever got involved in putting tarps on anybody's roofs for compensation.
 
If you aren't a public adjuster what are you that would put you in a relationship with a homeowner where you would put up the tarps and expect some sort of compensation?

My cat adjusters and my independent adjusters got paid by my company to go out, take pictures, figure up the repair costs and report back to me so I could pay the claim. None of them ever got involved in putting tarps on anybody's roofs for compensation.

Just a independent. I've been one for a very long time. Just looking to start up something different. I would not ever be involved in both sides of the business.
 
Just looking to start up something different.

As a full time career move?

Here are some things to think about.

You'll probably need a roofing contractor license. You'll certainly need the same kind of commercial liability insurance that roofers have when you go up on somebody's roof to nail down the tarps.

You'll need Worker's Comp insurance to cover yourself if you fall off a slippery roof while the wind is still blowing after the storm. You should probably have an assistant.

You'll need a truck, a ladder, tools, and a supply of tarps to haul around. That means commercial vehicle insurance and maybe an equipment policy.

You can drive around after a severe storm, look for roof damage, knock on doors, and offer to put the tarps up for a price. If there is already a roof leak the home owner will probably be happy to pay you to do it on the spot and you wouldn't need subterfuge.
 
How is this not a conflict of interest to be running a side business at the same time you are being paid by the insurance company to be the adjuster? I'd make sure you didn't lose your relationship there as they are the ones giving you the leads to those whose roofs you are now assessing. Unless you mean you are totally going to get out of the adjusting business altogether.

and I would suspect any insurance company would take issue with you doing this on their time.
 
How is this not a conflict of interest to be running a side business at the same time you are being paid by the insurance company to be the adjuster? I'd make sure you didn't lose your relationship there as they are the ones giving you the leads to those whose roofs you are now assessing. Unless you mean you are totally going to get out of the adjusting business altogether.

and I would suspect any insurance company would take issue with you doing this on their time.
Like I said, I would never be involved in both sides of the business.
 
Back
Top