Billing Policy

Baker and Company International Standard Billing Policies

The following details Baker and Company’s International standard billing policies for professional and administrative services in all international operating units. The policies supersede all existing policies for the billing of these services. However, this document does not address scope of service, which is dealt with by letter of engagement or service level agreement. 

I. Client Specific Fee Arrangements for Professional and Administrative Charges 

Baker and Company billing rates and procedures are specific to the programmes and claim-related activities being handled for each client and typically, a client’s specific fee arrangements for professional and administrative charges are negotiated and agreed prior to the handling of any assignment and should be stated in writing. 

Arrangements may include scale rates, flat rates, scheduled rates, fixed time charges for specific limited assignment tasks, fixed fees for certain administrative tasks and agreed upon hourly or daily rates which may vary from the scheduled rate. 

In cases whereby Baker and Company has agreed to client-specific fee arrangements for professional and administrative services that might differ from general billing policies described below in section II, III and IV, then the client specific fee arrangements will always take precedence. Client specific fee arrangements for professional and administrative charges must be stated in writing, something that can be in the client specific instructions or service level agreements, in the pricing section of any written contract, or other relevant documents. The client-specific instructions or sales level agreements, once agreed upon, should be sent to the client at the beginning of each programme or activity. 

II. Assignments with: a) No Pre-Established Fee Arrangements for Professional and Administrative Charges or b) Where, Fees are Under an Agreement With Baker and Company’s Time & Expense Billing Method

Baker and Company’s fees will be billed at our hourly rate at the time such services are performed, except for standard fees for the administrative tasks listed in section IV. This approach applies to all professional time on assignments except under pre-established client-specific billing arrangements (see section I) and under an agreement whereby services are provided on a specified time and expense basis the time that is billed will be for providing professional services, and travelling or waiting in connection with providing those services.

Time is recorded for each task in minimum six minute units per task (10 units per hour) rounded up to the next one-tenth of an hour when the prior one-tenth of an hour is exceeded: e.g. if a telephone call is 7 minutes long, the recorded time will be 2 units. 

The hourly rate will not include expenses unless agreed to the contrary and will be based upon the nature of any assignment, the grade of staff to be used and their expertise. Baker and Company may adjust fees to reflect the value and skill we bring to an assignment by delivering an innovative solution, or the special responsibility or urgency of the matter. Baker and Company may also adjust fees to reflect the benefit to you of any previous work product or precedents. For the avoidance of doubt, time spent on assignment-specific quality control, including senior adjuster review of reports and advices will be chargeable.

Administrative tasks not listed below also are billed based on the actual time spent by professional or administrative staff to perform the task. This administrative time is billed at the applicable hourly rate that applies at the time such services are performed. Time is recorded for each task in minimum six minute units per task (10 units per hour) rounded up to the next one-tenth of an hour when the prior one-tenth of an hour is exceeded: e.g. if a telephone call is 7 minutes long, the recorded time will be 2 units. 

Interim bills (see International Operations Interim Bill Policy – Work in Progress (WIP) / Unbilled Inventory) will be issued to an agreed cycle to the client. Baker and Company will review this issue with the client at the outset of handling any assignment. 

III. Specific Policies Pertaining to All Billings 

Multiple Files 
When a professional employee is travelling in connection with a file, his or her work on another unrelated file should not be billed in addition to the travel or waiting time on the first file, without client agreement. Where travel is incurred for more than one file, the actual time shall be prorated among such files, except where standard charges are agreed with the client. Mileage charges incurred for more than one file shall be prorated among such files, not to exceed total miles driven. 

Any single task charge related to multiple related files, including administrative tasks for which a standard fixed fee is charged, should be prorated across all related files. After such proration, any time which is less than, or between, one unit of time is rounded up to the unit of for each of the related files. 

Notification to Client 
For all assignments, an acknowledgement communication to the client, either by mail, fax or email, will be sent on receipt of the assignment and shall include (i) an acknowledgement of the receipt of the assignment, and (ii) a reference to Baker and Company’s Standard Billing Policies. to ensure a clear understanding between Baker and Company and the client relating to Baker and Company’s billing policies. Baker and Company should send a hard copy of the Standard Billing Policies to a client in all cases. 

If the client has already been provided with the Billing Policies, and requests in writing that acknowledgement letters no longer are sent, this should be confirmed by letter to the client. At that point, an acknowledgement letter need not be sent. 

Rate changes 
Rates for Baker and Company’s fees and disbursements are subject to regular review and may change during the course of completing any assignment. If the rates change, the revised rate will apply to our chargeable work from the date of the change. 

Baker and Company will endeavour to offer an estimate to clients of the likely fees and expenses for a case assignment. Final fees and costs may differ from this estimate if there are unforeseen circumstances or our role changes. Baker and Company will however, keep clients advised as to significant changes in our fee estimate. The estimate will be our best view, on the information we hold, as to the final cost of our services in relation to an assignment. 

Local taxes will be billed as applicable. All fee rates quoted will be exclusive of any Goods or Services Taxes. Baker and Company will liaise with the client on any particular issues the application of local tax rules pose. 

IV. Expenses

Expenses will be charged at cost minus any mark-up. There will be regional variations as to the scope of rechargeable expenses but examples may include: 
 – Airfare, accommodation, food and refreshment, taxis and hire cars. – All mileage is charged at per mile / kilometre – Parking and tolls. – Photocopies and faxes will be billed per page. – Photographs will be charged per item. – Telephone Charges for all domestic and mobile calls are at a per call rate. – International calls. – Standard mailing charge per file is charged for routine mailings, including electronic communications. Special mailings or deliveries (overnight mail, certified mail, courier service, international mail, etc.) are charged at cost. – Miscellaneous expense incurred for items, such as police reports, medical reports, cassettes, and other allocated expense, etc.

International Operations Interim Bill Policy – Work in Progress (WIP) / Unbilled Inventory

Baker and Company will submit an invoice for our service fee to all clients when claims are concluded. Should a claim not be concluded within timelines as detailed below, Baker and Company will submit an interim bill to the client for activities recorded on such a claim until the assignment is completed. All written client-specific billing arrangement will take precedence over these policies.

Interim Bill clauses to be included in the Claim Service Agreement, Limited Assignment of Services and National Pricing Agreements as follows:

Procedure for Acknowledging Receipt of New Claim Assignments.

The client will receive an acknowledgement letter to verify receipt of a new claim assignment, acknowledging that the claim is received, acknowledging Baker and Company’s interim and final bill guidelines, along with payment terms in cases where a master agreement contract and/or agreement is not in place.

Interim Billing Policy, Excluding Technical Services

A: Time ad Expense Claims – Billing
Should time ad expense claims not be concluded within a 45 day period from when the claim ir received and whereby there is more than £300 of WIP on the file, Baker and Company will submit an interim time and expense billing to the client for all activities recorded under such a claim. Until the time that the assignment is completed, Baker and Company will submit interim time and expense billing afterwards at 30 day intervals for all subsequent activities recorded on the claim. This is providing that there is more than £300 of WIP on the file. All Interim billed claims will continue to be managed by Baker and Company after such interim billings on a standard time and expense footing at the current hourly rate and expense level of billing in effect at the time of the interim billing.

B: Flat Rate Claims – Billing
A flat-rate billing period is from the date of accident or loss. Flat rate fees per claimant for newly reported assignments are initially billed 45 days from the date of receipt, or closure, whichever is first.

When applicable, flat-rate files that convert to an additional flat-rate due to reaching aging milestones will be billed at the beginning of the handling period. Should flat-rate files convert into time and expense handling, then the files will be billed at 30-day intervals until closure.

All flat-rate claims that are billed for time and expense fees recorded will continue to be handled by Baker and Company at their current hourly rate and expense method of billing at the time of the interim billing.

all flat rates exclude allocated expenses including outside investigative, appraisals, extensive subrogation, and all other ancillary services and activities. All of these items are deemed as allocated expenses and will be handled according to the current rates in place at the time the services are provided. All allocated expenses will be billed along with the flat-rate service fees.

Interim Billing Policy, Global Technical Services

When Work in Progress service fees exceed £1000 and the unbilled aging period is more than 90 days.

Interim Bill all Work in Progress claims with an aging period more than 90 days, regardless of service fee totals. It is expected that Work in Progress claims will have posted services that exceed £500. Work in Progress claims with less than this figure and more than 90 days of age require that a manager notating file acknowledging their review.

In certain circumstances, reinsurance agreements might limit Baker and Company’s ability to interim bill under this policy, in which case, exceptions to this policy must be approved by Baker and Company.

Payment Terms and Conditions 

Baker and Company’s established payment terms require that invoices be paid upon receipt in the local currency. Baker and Company reserves the right to assess interest for any late payment for all past due balances as permitted under local laws. Should an applicant’s account not be paid according to terms placed for collection, the customer agrees to pay all collection agency fees, legal fees and interest owed.