Your repair requires multiple trades. A general contractor coordinates them. Overhead and profit is owed—but carriers routinely deny it. Here's how to demand it and get paid.
⚠️ Carriers exclude overhead and profit from an estimated 60% of claims where it's owed. The typical O&P amount: $2,500-$18,000. Policyholders who document multiple trades and demand O&P recover it.
For the complete supplement and negotiation process, see our supplement master guide and negotiation guide.
When a repair involves multiple trades—roofer, electrician, plumber, drywall, flooring, HVAC—someone must coordinate the work. That's the general contractor's role. The GC doesn't perform the labor; they manage scheduling, permits, inspections, and quality control. For that, they charge overhead (administrative costs) and profit (compensation for assuming risk and organizing the job).
The industry standard is 10% overhead and 10% profit on the cost of subcontracted work. So if sub costs total $25,000, O&P adds $5,000. Insurance carriers are supposed to include this when a GC is reasonably necessary. Many omit it to reduce the payout.
Courts and industry practice generally recognize that when three or more trades are required to complete a repair, a general contractor is reasonably necessary—and O&P is owed. Examples:
Single-trade repairs—a roof-only claim with no interior damage—may not qualify. But when your scope clearly involves multiple trades, O&P applies.
Your effort doesn't eliminate the need—you're doing unpaid work. The policy pays for necessary repairs. Coordination is part of the repair.
They're under-scoping. Compare to contractor estimates. Roof, electrical, drywall, flooring—document every trade required.
Then it's incomplete. Submit a supplement with contractor estimates and industry standard. Demand the addition.
Document the trades required. Get contractor estimates that break out each trade. Show that coordination is needed. Cite industry custom: 10% O, 10% P when a GC coordinates multiple subs. Submit a formal supplement requesting O&P with your supporting documentation. Reference your policy's obligation to pay for necessary repairs. If they refuse, escalate to the claims supervisor and consider a complaint to your state Department of Insurance.
List every trade required: roofing, electrical, plumbing, drywall, flooring, HVAC, painting, etc. Contractor estimates should itemize these. The more trades, the clearer the case for O&P.
Sum the cost of subcontracted work. Apply 10% overhead and 10% profit. Example: $28,000 in sub costs = $2,800 overhead + $2,800 profit = $5,600 O&P.
Write a formal supplement letter requesting O&P. Attach contractor estimates showing multiple trades. State that industry standard and your policy support payment. Request response within 30 days.
If they deny, request a written explanation. Rebut with additional documentation. Escalate to the supervisor. File a complaint with your state insurance department. O&P disputes are common and regulators are familiar with them.
Our templates and guidance help you document multiple trades and demand the $2,500-$18,000 in overhead and profit you're owed.
Start Your Claim ReviewOverhead and profit (O&P) is the general contractor's markup when coordinating multiple trades—typically 10% overhead and 10% profit on the cost of subcontracted work. When your repair requires a GC to manage roofers, plumbers, electricians, drywallers, etc., O&P is industry standard and owed under most policies. It's usually $2,500-$18,000.
O&P is owed when multiple trades are required to complete the repair. Courts and industry custom recognize that a general contractor is reasonably necessary when three or more trades are involved. Single-trade repairs (e.g., roof only) may not qualify. Roof plus interior (drywall, plumbing, electrical, flooring) typically does.
Carriers often deny O&P to reduce payouts. Common excuses: 'You're acting as your own GC,' 'Only one trade is needed,' 'Our estimate doesn't include O&P.' Many of these denials are wrong when multiple trades are legitimately required. Document the trades needed and demand O&P with supporting proof.
Provide contractor estimates showing multiple trades (roofing, electrical, plumbing, drywall, flooring, etc.). Cite industry standard: when three or more trades coordinate, a GC is needed and O&P is customary. Reference case law or policy language if applicable. Some policies explicitly address O&P.
Standard is 10% overhead and 10% profit applied to the cost of subcontracted work. On a $30,000 repair with $25,000 in sub costs, O&P would be approximately $5,000. Typical range: $2,500-$18,000 depending on claim size.