O&P is one of the most misunderstood — and most commonly missed — line items in a roof insurance claim.
What O&P Stands For
O&P stands for overhead and profit — the general contractor’s markup for managing and coordinating a construction project. It’s a standard component of Xactimate estimates and has been the subject of extensive litigation between insureds and carriers.
Overhead (typically 10%) covers the contractor’s fixed costs — vehicles, insurance, licensing, office expenses. Profit (typically 10%) is the contractor’s margin. Combined, O&P adds approximately 20% to the base estimate.
When O&P Applies
O&P applies when a general contractor coordinates multiple trades — managing subcontractors, scheduling, and taking responsibility for the overall project.
For a roofing-only claim, the carrier may argue O&P doesn’t apply. But when the restoration involves roofing plus interior repairs, structural work, or HVAC coordination — O&P is almost certainly owed. Courts in Georgia and across the country have consistently sided with policyholders on this point.
Why Carriers Often Leave It Out
If they don’t include it, many homeowners don’t know to ask. O&P on a $15,000 roof job is $3,000. Multiply that across thousands of claims and you understand the carrier’s incentive.
Some carriers have explicit internal guidelines to exclude O&P from initial estimates and only add it upon request.
How to Request It
Your contractor should include O&P in their estimate when submitting. If the adjuster’s scope doesn’t include it, your contractor requests it via supplement with documentation showing general contractor coordination.
The request should reference: the multi-trade nature of the restoration, industry standards for GC markup, and relevant case law if the carrier pushes back.
What You’ll Hear From the Carrier
“We don’t pay O&P on roofing-only jobs” — sometimes valid, sometimes not.
“Your contractor isn’t a general contractor” — if they’re coordinating subcontractors, they’re functioning as one regardless of license type.
“That’s already included in the line items” — have your contractor verify this in Xactimate. It’s a specific line item, not embedded elsewhere.
If your carrier is disputing O&P and you believe it’s owed, this is worth escalating. The dollar amounts are significant.
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