Answers.com > Wiki Answers > Categories > Business & Finance > Insurance > How does a general contractor bill insurance company for overhead and profit?

How does a general contractor bill insurance company for overhead and profit?

In: Insurance [Edit categories]

Answer:

Just like they would bill any other customer. Most of the time it is not a separate part of the pricing. If a roof needs to be replaced then the adjuster may contact a couple of reputable contractors to get prices. Usually the insurance company prefers that the client choose their contractor but if they need help the adjuster will provide help. The contractors will provide estimates of the entire job and that is the way it would be handled. The insurance company doesn't generally ask for any breakdown other than what the contractor chooses to provide. For instance, a smart contractor will separate material and labor so that they will pay sales tax on the material only but if one price is given sales tax is due on the entire amount.

First answer by Robmixon. Last edit by Robmixon. Contributor trust: 10 [recommend contributor ]. Question popularity: 12 [recommend question].

[report abuse]

Can you answer these Insurance questions?

	Who is the CMD OF GIC?	Answer it!
	Can the IRS take Life Insurance proceeds for back taxes due?	Answer it!
	Does landlord insurance cover car damages on property?	Answer it!
	Can you register a car you don't own?	Answer it!
	Who plays Tyler from the progressive commercial where Flo's license is shown?	Answer it!

Relevant answers:

Do you have to have a general contractor to get overhead and profit from the insurance company?
No, there are plenty of laws and regulations that address overhead and profit. Contractors charge it and insurance companies pay it. That's the nature of the beast. The insurance company that doesn't...
Are insurance companies required to pay overhead and profit to general contractors in any states?
Insurance Companies and GCs Yes, they are required to pay normal cost of doing business for the contractor (Job related or GC) according to the Texas Department of Insurance. They only have to pay...
What recourse does a General Contractor have if an insurance company refuses to pat overhead?
ALL businesses/contractors deserve O&P. The insurances charge it in their policies to their insureds and therefore legally are not allowed to keep it; in addition to wanting your contractor to...
What is the General Fund in an insurance company?
the general fund of a company is a required fund that they maintain at a certain balance to pay out people who cash in market investments. this is a safe, secure, and liquid account. there are gov...
In insurance what does overhead and profit mean?
In those states that regulate insurance rates, among the factors evaluated are the overhead and profit of an insurer. Overhead includes salaries, upkeep on buildings, taxes, and those other usual and...