Overhead and Profit is justified on any claim that shows the need for “Coordination and Oversight”.
Overhead and profit are used by every general contractor. It is part of the business practices of all general contractors and many subcontractors. It is the cost of doing business and the designated profit for doing the business.
Your insurance carrier will often assert that your claim does not merit this payment.
Overhead is generally set at 10%, profit is generally set at 10%
We recently had a client in Massachusetts that received a $240,000 settlement for a commercial claim. To repair the damage to the properties required a well-qualified general contractor who agreed to do the repairs for the amount the insurance company was offering. The base costs was just over $240,000. The overhead and profit added another $48,000 to this total and would be the total responsibility of the owner.
This project more than qualified for overhead and profit based on the need for coordination and oversight.
We brought careful insight to this claim and settle the claim for the full amount needed to pay the contractor. We at Global Patriot Adjusters are proud of our capacity to bring truth to power.