Systems and methods for processing multi-party insurance claim payouts

A system includes an insurance claim processing circuit having instructions to receive an insurance claim payment request based on an insurance claim regarding an insured entity, evaluate the insurance claim payment request, receive a work progress indicator directly from a contractor device that is operated by a contractor and not the insured entity, the work progress indicator regarding a repair of an insured object associated with the insurance claim payment request, in response to determining a claim amount in the insurance claim payment request is above a predetermined threshold, generate and provide an authorization request including a request to confirm an identity of the contractor, and in response receiving a confirmation of the identity of the contractor, cause dispersal of an amount of funds based on the insurance claim payment request to the insured entity.