Home Improvement Contractor - Licensed Contractors

Can contractors ask insurance companies for Overhead and Profit?

I work for a construction company in Minnesota that specializes in storm related claims. I have heard that if 3 or more services are required and a 1 general contractors performs these repairs, then the general contractor can go back to the insurance company and ask for overhead and profit. Is this true?

Public Comments

1. yes, insurance co are people. no free ride
2. O&P is usually included in the Original estimate. I would not go back after the fact to get it. But in the future, if the adjuster's estimate does not have O&P and you believe it should be included -- call the adjuster up and ask them about it. Many companies will pay O&P to a General Contractor if the job includes 3 or more trades (none of which is roofing). Get it worked out at the beginning.
3. I'm an independent adjuster in MN who does work for a lot of insurance companies and the whole O & P issue comes up a lot. The companies we work for will not consider paying O & P on anything unless you have at least three trades involved. Without the 3 trades don't even bother asking. We normally only pay it on larger losses (house fires) when we have plumbing, electrical and carpentry involved in the repairs. If by "go back" you mean go ask for the O & P after you have agreed to a price or completed the repairs you're too late. I don't know of any companies that would agree to pay any O & P after the fact. If it isn't agreed to up front it won't get paid.