When Should You Add O&P?
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- Опубліковано 29 сер 2016
- O&P is always a heated topic when dealing with Insurance Carriers, so I wanted to give you all some ammo when discussing O&P.
When should you add O&P - ALWAYS. If, you are a General Contractor and you are co-ordinating subs, there is no overhead or profit included in the line item for you, by Xactware's definition.
Take a look at the Whitepaper on O&P located on Xactware's eservice website: eservice.xactware.com
Disagree? Be sure to comment below with your thoughts!
Want more info on what we're about? Go to www.xm8mastery.com
That is another good argument for OH&P, but the crazy thing is, if the insured hired a General Contractor, then that right there, by definition, entities the insured to get OH&P for their GC. Period.
How you don't have thousands of likes on some of these videos is beyond me. Very practical topics. Thank you for what you do.
Thanks for the kind words Terry! I'm glad that users like you find my info useful - I'll keep the good stuff coming :)
I was saying the same thing to my husband!
I see it and will be saying it like this to insurers who say no....OK Mr Adjuster so think of O&P as a chalk line the contractor the Shingle or tile and you Mr Adjuster as the pride in a job well done...OK ready..so I start laying straight along the chalk line and suddenly I start to venture off my chalk line but not much so I say what the hell and keep going...well when I get to the end I turn around to see a row of shingles that are not straight, if I kept on this method or way of thinking do you expect my business to get very many jobs based on the pride I have shown in my work....NO I would be out of business so you see Mr Adjuster without the overhead and profit you are removing the "pride" or funds necessary to operate my business efficiently and at a level the makes you Mr Adjuster look like a hero to Mr homeowner over there
Whats your opinion with O&P on water restoration? I typically use Xactimate for water restoration work, and also do the reconstruction. For reconstruction I have no issues with O&P, but for water restoration they don't allow it.
Are you using subs for the mitigation/water removal or are you using in-house crews? It's typical in the insurance restoration industry that mitigation is performed by in-house staff, and this is why O&P generally isn't paid on that trade.
XM8 Mastery Isn’t there overhead in mit work? And mit companies do deserve to make a profit to reinvest? I know what insurance companies say when we include O&P but what are the reasons, outside of “the insurance industry said so”, we don’t deserve o&p?
O&P should be paid. Period.
You are correct good sir.
General rule of thumb, three trades or more!
I used to train adjusters and I was taught this "rule" of 3 trades or more by the ins co and would parrot it to my adjuster students.Once I hopped the fence and saw what contractors go through and how the Overhead is the same whether they have 30 trades or 1 trade, my eyes were opened to the need for O&P on every file. They don't have any less staff, office rent, workman's comp, etc for 1 trade vs 3 trades.Also, the Xactware whitepaper is very specific on how they exclude O&P from line items, so that cinched the argument for me!
@@EstimateMastery Yeah, that sounds good, until you work for State Farnm and you have 2 managers and 3 reps around you saying "NO" to 3 trades or more rule lololol.
Where can I find this pdf?
Email me at alena@xm8mastery.com and I'll send you a copy of the white paper. It can be located on Xactware's eservice center, but isn't all that easy to find.
Only if your a licensed GC
Actually, in TX, they do not have licensing so if you're acting as a GC as an umbrella and hiring subs, then you are entitled to GCOP according to Xactware's definitions.