"No matter how big the lie; repeat it often enough and the masses will regard it as the truth."— Edward Bernays
The Hidden Ownership Structure
For two decades, property insurance carriers have relied on ITEL Laboratories Inc. as their primary source for material testing and pricing on damaged property claims. The lab's reports determined whether materials could be matched or were discontinued—a critical distinction that often meant the difference between a $2,000 repair and a $20,000 replacement.
But ITEL Labs isn't what it claims to be. Understanding what it actually is—and who owns it—reveals a pattern worth examining.
Key Revelation
ITEL Laboratories Inc. is not an independent laboratory. It's a subsidiary of Global Claims Services (GCS), a company specifically designed to help insurance carriers reduce claim payouts.
According to CB Insights, GCS's stated mission is to "help property insurance companies effectively settle claims worldwide" and is "committed to custom-fitting its service offering to meet the unique needs of each international insurance market."
The Obscured Business Structure
Global Claims Services' main website redirects visitors to gcsinc.com—a corporate site with minimal information about ITEL Labs.
ITEL Labs operates its own website (itellabs.com), presenting itself as an independent testing facility.
Nowhere on the ITEL Labs website does mention of the parent company appear.
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.
The Connection Web
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
-$22,450Hail damage claim on 15-year-old architectural shingles
Material discontinued - repair only
Same shingles found at 3 local suppliers
Claim disputed and eventually settled for full replacement
Texas Restoration Company
-$18,200Water damage to hardwood flooring
Flooring discontinued - spot repair approved
Manufacturer still producing the exact product
Independent testing proved availability
Colorado Commercial Property
-$45,000Storm damage to specialty siding
No match available - patch repair
Material available from manufacturer's warehouse
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
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
Insurance carriers have a duty to handle claims fairly and in good faith. Using biased testing from an affiliated company without disclosure could constitute bad faith.
Unfair Claims Practices
Most states have Unfair Claims Settlement Practices Acts that prohibit insurers from misrepresenting policy provisions or using fraudulent evidence.
Conflict of Interest
The undisclosed ownership relationship between ITEL and an insurance services company raises significant conflict of interest concerns.
Consumer Protection
State consumer protection laws may provide additional remedies for policyholders affected by these practices.
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
Is ITEL Labs legally allowed to operate this way?
How can I verify if a material is truly discontinued?
What should I do if I suspect an ITEL report is biased?
Can I refuse an ITEL test on my claim?
Are there class action lawsuits related to this issue?
Have You Been Affected?
Let us know your story
If you've experienced unfair claim settlements or have information about industry practices, we want to hear from you.
