If you’re a roofing contractor, you might have wondered, “What is O&P on insurance estimates?” You’ve likely seen these letters on insurance paperwork, but they can be confusing. O&P stands for “overhead and profit,” and it’s a key part of getting paid what you deserve for your roofing jobs. In this article, we’ll break down O&P on insurance estimates, why it’s often missing, and how SupplementPro can help you secure it. Let’s get started!
What Does O&P Mean in an Insurance Estimate?
So, what is O&P on insurance estimates? Simply put, it’s an extra amount added to an insurance claim to cover the costs of running your roofing business and making a profit. When a homeowner files a claim for roof damage, the insurance adjuster creates an estimate for repairs. This usually includes materials (like shingles and nails) and labor (the workers fixing the roof). But there’s more to your business than that, and O&P accounts for those extra costs.
Overhead includes the day-to-day expenses of keeping your business running. These aren’t just for one job—they’re costs you pay all the time, such as:
- Rent for your office or storage space
- Utility bills like electricity or phone service
- Insurance to protect your business
- Advertising to attract new customers
- Wages for office staff who manage paperwork
- Upkeep for tools, trucks, and equipment
Profit is what’s left after you pay all those bills. It’s the money that lets you grow your business, buy better gear, or take care of your team.
In an insurance estimate, O&P is typically 20% of the total cost—10% for overhead and 10% for profit. For example, if a roofing job’s materials and labor cost $12,000, you should get an extra $2,400 for O&P. But too often, insurance companies leave O&P out, which can hurt your bottom line.
Why O&P Matters for Roofing Contractors
Understanding what O&P is on insurance estimates is crucial because it ensures you’re paid for all the work you do. As a roofing contractor, you’re not just installing shingles. You’re managing projects, ordering supplies, scheduling workers, and dealing with customers. Those tasks take time and money, and O&P covers those costs.
If you don’t get O&P, you could face:
- Lost Income: Without O&P, you’re not covering your overhead, which means you’re paying for business costs out of your own pocket.
- Stalled Growth: Profit is what fuels your business. Without it, you can’t hire more workers or take on bigger projects.
- Unfair Pay: Skipping O&P means you’re working harder for less money. That’s not right for you or your team.
O&P is a standard part of insurance estimates, but insurance companies often try to skip it to save money.
Why Do Insurance Companies Skip O&P?
Insurance companies want to keep claim payouts low, and one way they do that is by leaving O&P out of their estimates. When you ask, “What is O&P on insurance estimates, and why isn’t it included?” you might hear these excuses:
- “The job isn’t big enough.” Some insurers say O&P only applies to complex projects with multiple trades, like roofing and plumbing. But most roofing jobs involve enough coordination to qualify for O&P.
- “You’re not a general contractor.” They might claim roofers don’t deserve O&P because they’re not managing a huge team. But if you’re running the job, you’re acting like a general contractor and should be paid for it.
- “It’s already in the estimate.” Some adjusters say O&P is included in the material and labor costs. That’s not true—O&P is a separate amount added on top.
These tactics are designed to shortchange you. The reality is that most roofing jobs qualify for O&P, and you’re entitled to it.
How SupplementPro Helps You Get O&P
Figuring out what O&P is on an insurance estimate is one thing—getting it is another. That’s where SupplementPro comes in. We specialize in helping roofing contractors like you secure the O&P you’re owed. Our team knows the insurance industry inside and out and has the tools to make sure you get paid fairly.
Here’s what we offer:
- Professional Templates: We provide pre-written supplement templates that make requesting O&P simple. These use Xactimate line items (the same system insurers use) so your requests are spot-on.
- Estimate Reviews: We’ll check your insurance estimates to find missing O&P or other underpayments. We’ll show you exactly what to ask for.
- Negotiation Help: If the insurance company says no, we’ll give you the evidence and arguments to fight back and win.
SupplementPro stays updated on insurance trends and tactics, so you’re always one step ahead. With us, getting O&P is easier, leaving you free to focus on roofing.
Real Contractors, Real Results
Here’s how SupplementPro has helped roofing contractors get O&P:
- Jake in Michigan: Jake kept getting O&P denials, with insurers claiming his jobs were too simple. SupplementPro helped him get O&P approved on most of his claims. “My profits are up 25%,” he says.
- Maria in Texas: Maria was new to roofing and didn’t know how to answer the question of what is O&P on insurance estimates. We showed her how to spot it and request it, adding thousands to her payouts.
- Sam in Colorado: Sam had years of roofing experience but struggled with O&P. With our templates and support, he turned rejections into approvals and grew his business.
These contractors were just like you—hardworking pros missing out on O&P. SupplementPro changed that, and we can help you, too.
Get Started with SupplementPro Today
Now that you know what O&P is on an insurance estimate, it’s time to start getting it. Don’t let insurance companies cheat you out of the money you’ve earned. With SupplementPro, you can boost your profits and grow your roofing business.
Here’s how to begin:
- Get a Free Consultation
Start with a free chat with our team. We’ll review your roofing insurance claims and show you how much extra money you could be earning. No pressure, no cost—just a chance to see what we can do for you. - Sign Up for the Plan That Works Best for You
Next, pick a plan that fits your business. Whether you’re a small crew or a big operation, we’ve got options that match your needs and budget. You choose what works for you. - Let Us Handle the Rest
Once you’re on board, we take over. Our experts handle all the paperwork and insurance hassles, so you can focus on roofing. We make it simple and stress-free.
For a limited time, we’ll prepare your first supplement for free! It’s a no-risk way to see how SupplementPro can transform your business.
Contact SupplementPro today to learn more about what O&P is on insurance estimate and how we can help you get it. Your free consultation is just a click away—start getting the payouts you deserve!
