"No matter how big the lie; repeat it often enough and the masses will regard it as the truth."
The Full Business Ecosystem
When you examine the full business ecosystem, Robert Logan served as CEO of both GCS and ITEL Labs from 2010 to 2022. He also had connections to DMH—a company that supplies shingles and other "discontinued" materials to contractors and homeowners.
Robert Logan becomes CEO of GCS and ITEL Labs
DMH material sourcing connection established
Pattern of 'discontinued' materials identified
Leadership transition occurs
DMH's Business Model
"DMH is a Discontinued Material Hunters company that [finds materials] that have been discontinued to allow for small repairs to be completed. We search throughout the United States continuously to find and purchase these stockpiled or 'discontinued' products so they are easily found and available for contractors and homeowners."
How The System Works
Understanding the mechanics of this system is crucial for restoration professionals. Here's a step-by-step breakdown of how the process typically unfolds:
Claim Filed
A homeowner files a property damage claim with their insurance carrier for roof, siding, or flooring damage.
Carrier Engages ITEL
The insurance adjuster sends a sample to ITEL Labs for 'independent' material testing and availability analysis.
Testing & Report
ITEL analyzes the material and issues a report on whether matching materials are available or discontinued.
'Discontinued' Finding
In many cases, ITEL reports the material as discontinued, limiting the claim to a small repair rather than full replacement.
Reduced Settlement
The carrier uses the report to justify a significantly lower payout, often saving tens of thousands of dollars.
The Hidden Incentive
When the testing lab is owned by a company whose mission is to help insurers "effectively settle claims" (i.e., pay less), there's an inherent conflict of interest. Every "discontinued" finding saves the carrier money—and ITEL's parent company benefits from keeping those carriers happy.
Real-World Case Studies
These documented cases illustrate the real financial impact on restoration contractors and property owners. While names have been anonymized, the figures and circumstances are based on actual claims.
Florida Roofing Contractor
-$22,450Scenario: Hail damage claim on 15-year-old architectural shingles
ITEL Finding: Material discontinued - repair only
Actual Reality: Same shingles found at 3 local suppliers
Outcome: Claim disputed and eventually settled for full replacement
Texas Restoration Company
-$18,200Scenario: Water damage to hardwood flooring
ITEL Finding: Flooring discontinued - spot repair approved
Actual Reality: Manufacturer still producing the exact product
Outcome: Independent testing proved availability
Colorado Commercial Property
-$45,000Scenario: Storm damage to specialty siding
ITEL Finding: No match available - patch repair
Actual Reality: Material available from manufacturer's warehouse
Outcome: Public adjuster intervention required
Financial Impact Analysis
The cumulative financial impact of these practices on the restoration industry is staggering. Here's a breakdown of the numbers:
Typical Claim Comparison
| Category | Fair Settlement | ITEL-Based | Difference |
|---|---|---|---|
| Roof Replacement (Matching) | $25,000 | $3,500 | $21,500 |
| Siding Replacement | $18,000 | $2,200 | $15,800 |
| Hardwood Flooring | $22,000 | $4,800 | $17,200 |
| Specialty Materials | $35,000 | $5,000 | $30,000 |
Legal Considerations
While we are not attorneys and this is not legal advice, there are several legal frameworks that may apply to these practices:
Bad Faith Claims
Unfair Claims Practices
Conflict of Interest
Consumer Protection
What To Do If You Suspect Unfair Practices
- • Document all communications and testing reports
- • Request independent testing from an unaffiliated lab
- • File a complaint with your state insurance commissioner
- • Consult with an attorney specializing in insurance bad faith
- • Consider involving a public adjuster on your claim
Impact on Claims
With "Available" Material
Small repair approved
With "Discontinued" Material
Full replacement required
This separation creates the impression that ITEL is independent when it's actually a department tool owned by an insurance service provider. Carriers and contractors have been relying on ITEL reports under the assumption that they're independent. They aren't.
What You Can Do
Request Independent Testing
Always request truly independent material testing from labs with no insurance industry ties. Research the ownership structure of any testing facility before accepting their results.
Document Everything
Keep detailed records of all communications and reports related to material availability. Photograph materials, save emails, and create a timeline of events.
Challenge Questionable Reports
If a report seems biased toward the carrier's interests, don't hesitate to seek a second opinion. Contact manufacturers directly to verify availability claims.
Know Your Rights
Understand the claims process and your right to dispute findings that seem unfair. Familiarize yourself with your state's insurance regulations.
Consider Professional Help
Public adjusters and insurance attorneys specialize in fighting unfair claim practices. Their expertise can often recover significantly more than their fees.
Report Suspicious Practices
File complaints with your state insurance commissioner when you encounter what appears to be bad faith handling of claims.
Frequently Asked Questions
Have You Been Affected?
Share your experience with ITEL Labs or similar testing practices. Your story could help others.
Mat Gregory
CEO, Apex Era
With over 15 years in the restoration industry, Mat has firsthand experience with insurance claim challenges and founded Apex Era to help contractors succeed.
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