How do insurers assess mitigation efforts?

Insurers pay close attention to what an insured did to prevent or limit a loss, because most policies impose a duty to take reasonable steps to mitigate, and the strength of those efforts affects both cover and quantum.

A board that can show prompt, sensible action to contain damage strengthens its claim and its relationship with insurers; one that cannot may face arguments that the loss was aggravated by inaction or that reasonable care conditions were breached.

This report explains how insurers assess mitigation in your chosen jurisdiction and industry, and the duty-to-mitigate, reasonable-care and sue-and-labour frameworks that govern it.

It covers the indicators that mitigation efforts may be judged inadequate, and the impact of strong or weak mitigation on recovery and future terms.

It also sets out when to engage loss adjusters, brokers and coverage counsel, so mitigation is both effective on the ground and properly evidenced for the claim that follows.