loss adjustment expense

Definition

The administrative costs incurred by an insurance company during an investigation of an insurance claim, which depends on the capacity of the insurance company's employees to conduct the investigation themselves. If the workforce is inadequate in the scale of the investigation, outside help may be hired. The expense may include items such as accident, injury or theft reports acquired from the police department.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
loss loss aversion