Contractor overhead and profit are not automatically payable on every estimate. The need for general-contractor coordination, the actual repair scope and the policy matter, so support the request with the work required rather than treating a fixed percentage as guaranteed.
Have an estimate, denial or repair bill you want reviewed? Contact GB Claims at 845-456-6699.
What overhead and profit is
On larger repairs, a general contractor coordinates several trades, schedules the work and stands behind the result. Overhead and profit is the charge for that coordination, added on top of the trade work itself. It is a normal part of real-world repair pricing on complex jobs.
When it is usually in dispute
Insurers sometimes pay overhead and profit only when the job genuinely needs a general contractor. A single-trade repair, such as a roof-only replacement by one roofer, is where insurers most often refuse it. A fire rebuild involving framing, electrical, plumbing, drywall and finishes is where the coordination need is strongest. The question is the actual work, not a rule of thumb.
How to support the request
Show the scope, not a percentage. List the trades required, who will coordinate them and why the sequencing needs a general contractor. A detailed estimate from the contractor who will actually manage the job carries more weight than a markup on a simple bid.
FAQ
Is 10 and 10 always required?
No. There is no universal rule that a set percentage must be paid on every claim. Whether any overhead and profit applies depends on the repair complexity, the need for coordination and the policy.
What evidence supports contractor coordination?
The repair scope itself: multiple trades, permits, inspections and sequencing. A written explanation from the general contractor managing the job helps.
Next step
Send us the insurer’s estimate and your contractor’s. We will compare the scope and tell you whether the coordination charge belongs in the claim. 845-456-6699.
Have an estimate, denial or repair bill you want reviewed? Contact GB Claims at 845-456-6699 or Claims@GBclaims.com. We’re open 24 hours Sunday through Friday and closed Saturday.
GB Claims LLC is a licensed public adjuster serving New York, New Jersey, Pennsylvania and Connecticut.
Sources
- Connecticut Insurance Department: homeowner disputing an insurer damage estimate
- Texas Department of Insurance: what to do if insurance is not paying enough (general guidance)
- United Policyholders: overhead and profit
This page is general educational information, not legal advice or a determination of coverage under your policy. Your policy and state rules control.
Reviewed by the GB Claims claims team, licensed public adjusters in NY, NJ, PA, CT. Last reviewed: October 8, 2026.