The crime scene cleaning business is a lucrative one - Insurance News | InsuranceNewsNet

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July 18, 2016 Newswires
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The crime scene cleaning business is a lucrative one

Philadelphia Inquirer (PA)

July 19--It was one of James McArthur's first cleanup jobs. A man had died in a house in Northeast Philadelphia some days before and the body had started to decompose.

"What's that smell?" a new employee asked.

"That's the decomp, that's what it smells like," McArthur replied, when a woman came out of the house and chastised him.

"That's my dad you're talking about!" he recalled her saying.

McArthur learned a valuable lesson in humility.

"Now I tell all my guys: when you go to the house . . . watch what you say," he said. "It's someone's home. You treat it with respect."

McArthur owns BioOne, a franchise biohazard removal and crime scene cleanup firm in South Philadelphia.

The business is one of about a dozen in the area that are called on when someone dies and a cleanup is needed due to blood from violence or the person had been dead for some time.

Despite a drop in violent crime across the U.S., the crime scene clean-up industry has boomed. Profits for the nearly 600 firm in the U.S. totaled over $99 million in 2015 with revenues of $357.5 million, according to IBISWorld, a market research group. But those profits are sometimes reaped from those who can ill afford costs that may run into the tens of thousands of dollars when insurers do not pay.

In the Philadelphia area, there are a handful of locally-owned franchises and cleanup crews, such as BioOne and Emergi-Clean.

Those businesses compete against larger companies such as Aftermath Inc., which has locations across the U.S. and has done over 500 jobs in the Philadelphia area from January 2015 to June 2016, the company said.

Some say the field was not so crowded six years ago, and owners credit the boom to its depiction in popular media, including the Indie film Sunshine Cleaning.

"I was looking for advancement financially, and I was looking to buy a franchise, but I was always more into helping people," said McArthur. "You can get very rich off this. I'm not one of them, but you can definitely do it."

McArthur and other executives said that weak or nonexistent government regulations, on such issues as training and proper cleaning standards, have allowed too many people to get into the business and are starting to drive down profits.

In Pennsylvania, becoming a biohazard cleaning technician requires just two things: a $99 safety training course taught by the Occupational Safety and Health Administration (OSHA) and a Hepatitis B vaccine.

"There's not an organization that really regulates this industry as far as saying how you do it and what you need to do," said Bryan Reifsteck, senior director of operations for Aftermath, Inc.

The lack of regulation has made cleaning companies rely on self policing through the American Bio Recovery Association, which certifies operators and sets standards. But those rules are unenforceable and the group simply asks that companies fall in line.

For consumers, the problem with biohazard removal is its price. Cleanups can cost from $1,000 to $40,000.

Homeowners insurance typically covers most of the costs to clean up a crime scene, but coverage is usually lumped together under the same coverage as fire and water damage, said Chris Hackett, director of Personal Lines policies at Property Casualty Insurers Association of America. And because there is no specific exclusion for crime scene cleanup, insurance adjusters can underestimate the real cost.

"Bottom line, end of story is that biorecovery is not the same as having a fire or a flood in the house," said Andrew Yurchuck, president of the American Bio Recovery Association and the owner of BioClean of New Jersey.

As a result, there will be instances where insurers won't pay the full bill, leaving it to consumers to shell out the rest, he said.

For those who can't pay, most states have a Victims Compensation Assistance Program (VCAP) to help cover crime scene cleanup. But in Pennsylvania, the maximum award is $500, which advocates say is a laughable amount.

"It's not enough," said Chantay Love, president of EMIR Healing Center, which assists Philadelphia families who apply for assistance for cleanup and funeral costs of those who were murdered. "It's never enough."

[email protected] 215-854-2928 @JosephJaafari

___

(c)2016 The Philadelphia Inquirer

Visit The Philadelphia Inquirer at www.philly.com

Distributed by Tribune Content Agency, LLC.

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