O & P....is it part of ACV?

[Sentry]

Ever had an adjuster hold back O & P until the work was done? Here is a link to a great article on O & P as it relates to determining ACV on a loss.

http://www.adjustersinternational.com/ATpdf/3032_Overhead_and_Profit.pdf

[Sentry]

What is your opinion on O&P? Is it part of a loss whether or not it is incurred? Personally, we have advocated that an adjuster withhold O&P and apply recoverable depreciation in order to hold an Insured's feet to the fire to hire a contractor to make the repairs. Is that ethical? I'm not so sure now.