Overhead and profit on a roofing claim: the 3-trade rule

Overhead and profit (usually 10% and 10%) is commonly paid when a general contractor is reasonably needed to coordinate the job. Many carriers use a guideline of three or more trades on the estimate. A hail claim with roofing, gutters and paint often meets it, and the estimate still leaves O&P off.

Why it gets left off

• —The adjuster treats the job as roofing-only even though gutters, siding or paint are on the estimate.
• —O&P is applied to the original estimate but not to supplemented items.

The code or standard

Carrier guidelines vary by state and policy. The 3-trade test is a common carrier guideline, not a statute. Some states treat O&P as owed whenever a GC is reasonably likely to be needed.

How to measure it

Count the trades on the estimate. If three or more, O&P is calculated on the full replacement cost of the work, including supplemented lines.

What to put in the supplement

1. The list of trades on the estimate (for example roofing, gutters, paint).
2. Your role coordinating those trades on this job.

Questions

Does ClaimGap add O&P automatically?

It checks the trade count and shows O&P as a toggle. You decide whether to request it.

Can I request O&P on supplement items only?

If the carrier already paid O&P on the original estimate, it should apply to the supplemented items too. ClaimGap applies it to the new items in that case.

This guide is general information for roofing contractors documenting their scope of work. It is not legal advice. Code adoption varies by jurisdiction, and some states restrict contractors from negotiating claims on a homeowner's behalf.