Tag Archives: Overhead and Profit

Overhead and Profit Workshop For Restoration Contractors in Dallas on October 1

Insurance restoration contractors and public adjusters often complain that many insurance companies will instruct their field adjusters to do just about anything to exclude paying general contractor overhead and profit. Jacob Krahl, managing director of Elite Consulting Pro, has had so many contractors he consults with complain about this unique issue he is sponsoring an … Continue Reading

Farmers Sells a Policy that Is Far Worse then Its Competitors – Review of the Farmers “Next Generation” Homeowner’s Policy, Part 3: Overhead and Profit

The title of this blog is a quote by Chip Merlin after we discussed some of the issues that have been popping up in my continued review of the Farmers “Next Gen” policy. During this review, I realized this policy is really the gift that keeps on giving—that is, if you are the carrier. Hidden … Continue Reading

Payment of Overhead and Profit

One common problem that has been arising is when overhead and profit should be paid in response to a property insurance claim. For those not aware, overhead and profit (generally estimated at 20% of the total amount of the estimate) is intended to cover the overhead/operating costs of a general contractor as well as the … Continue Reading

Kelly Kubiak, Esq. Explains Overhead and Profit

Kelly Kubiak, an attorney at Merlin Law Group, talks about Overhead and Profit in this video. Overhead and Profit is when you have an insurance claim with an insurance company and they pay you for building damages. One of the things the insurance company must take into consideration is whether or not it is reasonably likely … Continue Reading

Overhead and Profit versus Supervision

Monday’s Superstorm Sandy Seminar for Public Insurance Adjusters had some very interesting discussions involving the fine details of adjustment. One of those had to do with the costs of supervision and whether those should be part of general contractor overhead and profit.… Continue Reading

When Is a Policyholder Entitled to Overhead and Profit?

The prevailing view is that overhead and profit is due if a policyholder can show the services of a general contractor is “reasonably likely.” In Mee v. Safeco Insurance Company,1 James Mee purchased homeowners coverage from Safeco. Mee suffered a loss to his home when a toilet overflowed. Safeco prepared an estimate for repairs but … Continue Reading

Louisiana Citizens Property Insurance Loses Overhead & Profit Case

Louisiana Citizens Property Insurance Company has settled a state class action case, Press v. Louisiana Citizens Fair Plan Property Insurance Corp., for failing to fully pay overhead and profit to insureds. The proposed settlement, for $23 million, covers claims from Hurricanes Katrina and Rita.… Continue Reading

The Overhead Fight — Understanding Business Interruption Claims, Part 8

(Note: This Guest Blog is by Michelle Claverol, an attorney with Merlin Law Group in the Coral Gables, Florida, office. This is the part of a series she is writing on business interruption claims). Accountants usually define “overhead” as operation costs that are incidental to the production process. Generally, there are three categories of “overhead:” (1) those … Continue Reading

Overhead and Profit Ike Cases in Class Action Status and Gaining Media Attention

Houston Chronicle reporter, Purva Patel, filed an article, "They Want ‘Profits’ of Ike," noting that Hurricane Ike policyholders who have wrongfully been denied payments for expected costs of general contractor overhead and profit are bringing their actions in class action lawsuits. Our law firm has filed some of these cases with Javier Delgado taking the … Continue Reading
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