Policyholders and Contractors: Overhead & Profit

Overhead and profit is an issue that comes up quite often in the claims process. The question is this: Am I entitled to get overhead and profit for my project? Not always, but if you are reasonably likely to hire a general contractor to perform the work of your project, then you’re entitled to overhead and profit.

Many times, an insurance company may try to hold back the overhead and profit, or they may suggest to the policyholder that unless you have three trades or more, then we don’t pay overhead and profit – and it’s simply not true. Again, the test is: Is the policyholder reasonably likely to hire a general contractor to perform this work.

If so, then you’re entitled to overhead and profit, and a policyholder should look very closely at their estimates to make sure that that’s included, and that’s something that we can help with here at McWherter Scott & Bobbitt.

McWherter Scott & Bobbitt represents policyholders throughout the state. To learn more about the Firm’s services, or to schedule an appointment with a Tennessee insurance dispute lawyer like Jonathan Bobbitt, please call 731-664-1340, or fill out our contact form. We maintain offices in Nashville, Chattanooga, Memphis, Jackson and Knoxville for your convenience.