, Resources for Adjusters from Adjusters
O&P who really decides? Careers | Training | Adjusters
Vendors | Marketplace

The Adjuster's Forum » General Discussion » O&P who really decides? « Site Map »
Topics | Home | Current Forum | The Classifieds | Adjuster Roster | Channels | Resources | Contact Us

Author Message
Cecil Kraft (Cecil)
Posted on Saturday, February 17, 2001 - 7:33 am:   

David, You are absolutely correct. Thanks for your comment.
David P Bennett (Whitey)
Posted on Friday, February 16, 2001 - 4:03 pm:   

You may find, depending on the geographical area you are involved in, that the unit cost is built to include the sub's overhead and profit and or markup percentage. I have noticed a change in general contractors of late, in that GC's of years gone by, had at least one or two trade crews in their employ. Today, it appears a lot of the GC's now have laborers with a supervisor employed and use subcontractors for the major trades. In this scenario the subcontractor will include his overhead and profit in the price charged the GC, who then presents in a unit cost measure the customer (which could be an individual, insured or adjuster) and then the GC adds his OH&P to the bottom line. Unless you are able to break down the unit cost to determine what is included, you would never know which unit costs have OH&P built in.

Burden effects the labor rates and is almost always built in to the unit cost.
mark (Olderthendirt)
Posted on Thursday, February 15, 2001 - 9:40 pm:   

I Have never understood the pricing on our programs included o&p. I have noticed that more and more carries ask us to leave it of the estimates, they agree to pay it when the contractors invoice is submitted. They must have figured out that o&p can move us up the fee schedule. ps the way things are goings, fees down and costs up, you'll need 2 files a day just to break even, one for food and lodging and one for gas.
David G. Dye (Davidgdye)
Posted on Thursday, February 15, 2001 - 4:40 pm:   

I am familar with Boeckh, DDS, Simsol and Xactimate. I have never heard of O & P being included in unit costs. Over the years I have worked for many vendors and carriers. But this is one I'm unfamiliar with.

Rather than O & P the tipster may have been thinking of "burden" costs (ie. workers comp)which can be contained in unit costs.

FWUA did have sales tax added to their price lists for handwritten estimates. And we had to adjust unit costs to reflect sales tax for material in our databases for computerized scopes.
(This was following Hurricane Opal.)
Roy Cupps (Admin)
Posted on Thursday, February 15, 2001 - 11:18 am:   

I received this email about the "Tip" on the home page. Since this thread is about O&P I felt it was a good place to discus the "Tip".

"This month's article by Lyndon Graves on using unit costs is in error. Unit costs include Overhead & profit. The only time you add O & P is when estimating based on Time and Material."
Tom Joyce (Tomj)
Posted on Tuesday, December 19, 2000 - 10:01 am:   

Several states have ruled that because the premium is based on the losses having O & P included there is no basis for the companies to withhold the O & P at the time of the adjustment.
The state insurance departments based the rulings on the premise that if the premium is based on a set forumla and is accepted, you cannot go back and readjust claims handling to reduce payouts. Besides, how many people are going to do the work themselves. Also dont forget that by elimaniting the O & P off an estimate often reduces the service fees paid to the adjuster.
Tom Weems (Tomweems)
Posted on Tuesday, December 19, 2000 - 9:42 am:   

One of the best articles I have seen on the subject of when O&P can be paid is in Claims Magazine. Here is the link
(Link Removed by Request)
Posted on Monday, December 18, 2000 - 8:24 pm:   

Most Carriers now require a signed Contract with a General Contractor to add O & P to an estimate
before repairs are made.I believe the Dept. of Insurance in each state will dictate how and when O & P is paid.Most Carriers will pay O & P if a Public Adjuster or Attorney has been hired,even without a signed contract.Like Chuck stated the Storm Manager calls the shots,when in doubt he or she is the authority.Happy Holidays to All.
See You at the convention.
Chuck Deaton (Chuck)
Posted on Sunday, December 17, 2000 - 5:57 pm:   

Coverage is policy specific and, generally, replacement cost, if provided for in the policy, as most insurance polices are contracts of indemnification, is only owed if lost or damaged items are actually replaced or replaced. It follows that if repairs and replacements are made and overhead and profit are not incurred then overhead and profit should not be paid.

In any event only ACV is owed until such time as repair/replacement is started and costs are incurred.

When in doubt about the use of overhead and profit ask for clarification from the on site storm manager. Another point is that often times overhead and profit are negotiable.
Bruce (Bholling55)
Posted on Sunday, December 17, 2000 - 4:22 pm:   

I was researching the issue of O&P, which I was reading replies back in October, it isn't very clear. I found this article put out by the DOI. log onto:
(Link Remove By Request)
does this carry any weight?

Topics | Home | Current Forum | The Classifieds | Adjuster Roster | Channels | Resources | Contact Us