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 the amount that was agreed on at the beginning of the contract, but should include OHP. Yes, 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. Also, insurances charge insureds in their policies to cover it and keeping it is an illegal windfall. The insurance company that doesn't pay it is not only an exception to the rule but runs the risk of breach of contract and bad faith lawsuits as well as sanctions by insurance departments. There has been much litigation against insurance companies that mess around with overhead and profit, including several class action lawsuits against major insurance companies.