What is overhead and profit (O&P)?
An extra percentage — usually 10% overhead plus 10% profit — added to a claim when the job is complex enough to need a general contractor.
Overhead and profit, often written as O&P or “10 and 10,” is a 20% markup carriers add to a claim to cover a general contractor’s costs and margin. It’s meant for jobs complex enough that a GC has to coordinate multiple trades.
Roofing claims that involve interior repairs, multiple trades, or significant complexity often qualify for O&P, but carriers don’t always include it on the first scope. That makes it a common — and significant — supplement item.
Whether a job qualifies for O&P comes down to its complexity and the number of trades involved, not just the dollar amount. When it applies, documenting it correctly can add a meaningful percentage to the whole claim.