O&p

Is there a way of getting O&P without multiple trades?

Is there a way of getting O&P without a contractor’s license?

I have been beating my head against the wall in this industy for awhile with pretty decent volume, but making peanuts on each job and I am just trying to figure out a way to be a litte more profitable. I subcontract out all my labor and have a project manager at each job. Is this enough to qualify for O&P?

[quote=“oldtimerroofing”]Is there a way of getting O&P without multiple trades?

Is there a way of getting O&P without a contractor’s license?

I have been beating my head against the wall in this industy for awhile with pretty decent volume, but making peanuts on each job and I am just trying to figure out a way to be a litte more profitable. I subcontract out all my labor and have a project manager at each job. Is this enough to qualify for O&P?[/quote]

Yes…and no, and maybe, it depends.

First, why no contractors license? None required in your state?
You should be making at least 41% profit on each and every ins job. If you are only making “peanuts”, you must be missing something that will continue to cost you thousands of dollars in lost profit and income every year until you find the solution.

wrote a long reply that addresses the entire O&P confusion and hit tab accidentally and it jumped back to the posts, erasing my entire message. sweet. the short and sweet version is to call your state department of insurance and they can show you the light. if you get someone on the phone that is short with you and not overly intent on telling you the rules of the game, then call back and talk to someone that takes pride in accountability. i ask for O&P on everything and get it about 85% of the time. the best rule if you want to play contractor is to educate yourself on what the rules are. the department makes the rules and can break insurance companies that don’t comply. that’s the gist of my message. hope it helps.

Unfortunately, most state ins depts and their commissioners are beholden to NAIC rather than ins consumers and therefore, generally not all that interested in taking any substantive overall action against ins companies.

I’d agree with the 85% figure. I just got an approval for o&p on a $25k roof only, and all I had to do was send in my contract that included it and a blacked out invoice from my roofing installer. When I feel like I am talking to a “wet behind the ears” goon in a cubicle (who is only one denial away from his set of steak knives), I may have to bring the L-Word into the picture. If I have a signed contract for 10 & 10, insurers usually put on their negotiating hat if liens come into the picture. Surprisingly homeowners get upset if they have to come out of pocket on something their insurance agrees is a covered loss. Who would have thought?

Take a look at page 2 of State Farm’s scope.Read the example of line item payments.See where O and P is.They pay O& P.Refer them to that.Stay cool and let them put themselves in a corner.Complexity is when I have to deal with them over and over and get all the codes to them !etc etc.

If you don’t need a license to be a general contractor in your state, then you should be able to get O&P for every additional expense needed to run your business. Your administrative costs, office rent, supplies, salaries for office personnel, port-a-pottie expenses, security, temporary fences. Maybe you need to sit down and actually calculate exactly where all of your money is going. When you put on a roof, it is not just the supplies and labor that cost you. Every thing from the work gloves, to fuel, to the administrative cost to process the paperwork and submit it to the insurance company cost you money. Every time you spend money on anything related to your business, it needs to be accounted for. Running a contracting business is difficult because contractors are rarely accountants and fail to see all of the holes that are sucking up their funds.

:slight_smile: um what is o&p
?