By The Restoration HQ desk · · filed under Claims & Coverage
Allstate pays $335K to settle a fight over a $33K restoration invoice
A retired Allstate claim manager testified the carrier acted in bad faith for refusing to pay overhead and profit, and the dispute over a roughly $33K invoice settled for $335K. It sits inside the broader O&P fight, where carriers strip O&P by narrowly counting "three or more trades."
FORDocument that you coordinated the trades, managed the permits, and ran the job, and O&P is yours no matter how the desk counts trades.
AGAINSTOne contractor got a 10x settlement after years of fighting, which tells you the system still makes you sue to get paid what the estimate already owed you.
Consensus vs. contrarianEveryone reads this as a contractor win. The smarter take: a $335K settlement on a $33K bill is not a win, it's proof the cost of denial is so low for carriers that they'll keep doing it. The win is a workflow that makes O&P undeniable on page one, not a lawsuit three years later.
Sources C&R Magazine, www.candrmagazine.com/allstate-pays-contract… O&P context: Edge VA, blog.edgevacopilot.com/op-xactimate-carriers…
Terms in this story: O&P (Overhead and Profit)