What is O&P (overhead and profit) and when does it apply to a roof claim?
By Tom Kovack Jr., CEO · July 2, 2026 · Contractor guide
Across 556 documented roof claims, DumbRoof-built packages won 197 and recovered $7.25M.
Short answer
O&P is the general contractor’s overhead and profit — customarily 10% overhead plus 10–11% profit on the job total. It applies when coordinating the repair reasonably requires a general contractor, the industry benchmark being three or more trades involved. It is owed on RCV, not withheld as a favor.
The 3-trade rule
O&P (often written “10 & 10” or “10 & 11”) compensates the general contractor for managing subcontractors, scheduling, and jobsite oversight. DumbRoof applies 21% (10% overhead + 11% profit) on qualifying jobs.
The widely accepted trigger is three or more separate trades. A storm roof job frequently clears this — e.g., roofing + gutters + siding, or roofing + interior drywall/paint from a leak + detach-reset of a satellite/solar trade. When three trades are reasonably required, a GC is reasonably required, and O&P is owed on the entire RCV, not just the non-roof lines.
When carriers wrongly deny it
Adjusters strip O&P by undercounting trades or claiming “a roofer can self-perform.” Rebut by listing each distinct trade with its scope lines, and noting that trade count and complexity — not who holds the contract — governs GC necessity.
Formula: O&P = Line-Item Total × 0.21 (when 3+ trades). It is added after RCV (line items + tax), then the deductible nets out.
Definitions
Overhead & Profit (O&P)
The general contractor's overhead and profit — customarily 10% overhead plus 10–11% profit — owed on the RCV when coordinating the work reasonably requires a general contractor (the industry benchmark being three or more trades involved).
People also ask
When does O&P apply to a roof claim?
When coordinating the repair reasonably requires a general contractor. The widely used trigger is three or more separate trades involved (e.g., roofing + gutters + siding), at which point O&P is owed on the entire RCV.
How is O&P calculated?
O&P = Line-Item Total × 0.21 (10% overhead + 11% profit) on qualifying 3-trade jobs. It is added after RCV (line items plus tax), and then the deductible nets out.
Can a roofer claim O&P if they self-perform the work?
Yes. The controlling question is whether a reasonable property owner would need a general contractor to coordinate the work — a function of trade count and complexity — not whether the roofer self-performs.
Keep going
Educational information, not legal advice. Coverage depends on your specific policy and state law. Read your policy or consult a licensed professional. DumbRoof is documentation software you use on your own claim — it is not a public adjuster or law firm and does not act on your behalf.
Build the evidence file for your claim
Upload your inspection photos and measurements. DumbRoof generates a forensic causation report, an Xactimate-style estimate, and a scope comparison — in about 15 minutes.
Try Your First Claim FreeNo credit card required