Overhead and profit allowance

Definition

The margin an insurer adds to a claim when the repair is complex enough to need a general contractor.

Why It Matters

On insurance work this allowance is often the difference between a job that clears margin and one that does not, and carriers apply it inconsistently. A roofer who knows when to ask for it, and who documents the trades a repair involves, collects it. One who does not eats the difference on every storm file. Ask what share of storm claims were paid with it and who inside the company argues those files. That skill sits in a person rather than in the business, so find out whether the person is staying.