Depositing of insurance checks

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Question:

What is the best way to handle an insurance check made payable to an individual that's being deposited into a business account? For example, John Doe was in an auto accident. His insurance company sent the auto body shop a check made payable to John for repairs. The auto body then deposits the check into their business account. Same type of example for medical claims as well.

Answer:

Answer by Randy Carey:

These sorts of checks are normally made payable to both parties. You just need to be sure that they are endorsed correctly by both parties prior to deposit.

Answer:

Answer by John Burnett:

In the unlikely event that the check is payable to the policyholder only, it would be reasonable for the check to be indorsed over to the autobody shop, which then indorses it for deposit to its own account.