What Is Overhead and Profit on a Roofing Claim?
Overhead and profit (O&P) is a standard Xactimate line item applied as a percentage markup — typically 10% overhead and 10% profit — on top of direct repair costs. It compensates general contractors and restoration companies for the cost of coordinating, managing, and warranting the work.
The insurance industry standard is to include O&P whenever a general contractor is involved in the claim. On most residential roofing claims, that means you should be getting O&P.
Why Carriers Deny O&P
Carriers routinely deny O&P on roofing claims by claiming:
These are incorrect under established insurance industry practice, and they can be challenged.
The Case for O&P on Roofing Claims
The standard argument for O&P on roofing claims:
1. Coordination of subcontractors Even if you self-perform the roofing work, you may coordinate:
2. Warranty exposure As the general contractor, you are on the hook for the entire scope — not just the roofing labor. That risk justifies profit.
3. Industry standard The Xactimate pricing database assumes O&P is included in multi-trade or contractor-managed claims. Withholding it requires specific justification from the carrier.
How to Cite O&P in Your Supplement Letter
Your supplement letter should include:
Let EstimateDelta Handle the O&P Argument
[EstimateDelta](/pricing) automatically identifies when O&P is missing from a carrier estimate and generates a supplement letter with the full citation-backed argument for approval.
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