May 1, 2026
What is large loss restoration? Large loss restoration refers to significant commercial or residential property damage events — typically exceeding $100,000 — that require multi-trade coordination, extended project timelines, and specialized project management capabilities beyond routine residential mitigation.
Large loss commercial restoration is the category that separates restoration companies that grow to $8M+ from those that plateau at $3M. A single large loss can represent three to six months of residential volume. But large loss work is not just residential work at higher dollar amounts — it requires different project management capability, different financial infrastructure, different subcontractor relationships, and a different customer model. Companies that try to execute large loss work with residential operating systems fail.
A dedicated PM whose sole responsibility for the duration of the job is that job — with daily site presence during active phases, authority to make routine decisions without owner approval, multi-trade coordination experience, documentation capability at a professional level, and commercial client relationship management. If you don’t have a PM who can do all of this, large loss work will expose that gap quickly.
A $500,000 job may require $200,000-$300,000 in direct costs before the first draw is approved. Know your maximum single-job capacity, negotiate draw schedules explicitly at the start of every large loss, and understand the payment process for the specific carrier before you mobilize resources.
Large loss reconstruction requires structural engineers, general contracting, specialty flooring, commercial HVAC, electrical, plumbing. Build these subcontractor relationships before you have a large loss job — finding subcontractors while a $500,000 job is waiting is not the right sequence.
Site walk with the adjuster before estimating begins, multi-phase scope development as separate estimate components, explicit documentation of what is and is not in scope, and change order discipline from day one.
A draw schedule is a pre-negotiated payment schedule specifying amounts and timing of payments at defined project milestones. Negotiating a draw schedule upfront is essential for managing cash flow on large loss jobs.
Losses exceeding $100,000 in total restoration scope are commonly classified as large loss. Many national carrier programs define large loss thresholds at $150,000-$250,000.
Mike McCabe is The Profit Detective — a 36-year restoration industry veteran and Fractional Operations Manager at Floodlight Consulting Group.
Most engagements pay for themselves within the first week.