Loss Adjustment Expense
/ˈlɒs əˌdʒʌstmənt ɪksˈpɛns/
Definitions
- (n.) Expenses incurred by an insurer to investigate and settle claims, including legal fees, adjuster salaries, and related costs.
The insurance company accounted for loss adjustment expenses separately from claim payouts.
Forms
- loss adjustment expense
- loss adjustment expenses
Related terms
See also
Commentary
Typically classified as part of underwriting expenses, loss adjustment expenses are important for evaluating an insurer's operational costs related to claims handling.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.