Tag Archives: Duty to Mitigate

Collecting For Immediate Remediation Costs

Insurance policies ordinarily contain terms that provide that an insured must exhibit the damaged property for the insurance company’s inspection after a loss. The same policies also provide that an insured has a duty to mitigate damages to the property to prevent further damages. Does an insured breach the insurance policy by preventing the insurance … Continue Reading

Insureds that Prematurely Initiate Repairs Without the Approval of the Insurer May Do So At Their Own Peril

In Paslay v. State Farm General Insurance Company,1 the California Court of Appeal addressed an issue insureds and public adjusters regularly face: How quickly should you address, remediate, and repair damaged property to comply with your obligation to “mitigate” the damages to the property, without “prejudicing” the insurers investigation?… Continue Reading

The Gamesmanship Of The Property Insurance Claims Process…Yes You Have To Show The Insurer The Damaged Property, But You Also Have To Repair It Promptly

Insurance policies have certain provisions that must be complied with in a property insurance claim. These are called duties after loss, and if reasonably requested by the insurer, they must be complied with. Recently, an insurer in New York became involved in litigation over whether the policyholder had shown it the damaged property following a … Continue Reading

Mitigation Efforts Are Recoverable as Extra Expenses Outside the Period of Interruption – Understanding Business Interruption Claims, Part 34

In a business interruption claim the insured has an obligation to mitigate its losses by reasonable means, but, as illustrated in Insured’s Duty to Mitigate – Understanding Business Interruption Claims Part 30, insureds should not be required to go out on a limb to protect the insurer and then get a hand slap in response.… Continue Reading

The Insured’s Duty to Mitigate – Understanding Business Interruption Claims, Part 30

The insured’s duty to mitigate its damages after a loss is a well-recognized principle in property insurance law. In business interruption claims insureds are required to take affirmative steps to reduce their loss of earnings after a loss. While an actual business loss occurs only where the insured is unable to reduce or eliminate lost … Continue Reading

A Catch-22 in Extra Expense Coverage – Understanding Business Interruption, Part 24

Evaluating a business interruption claim is not as simple as it sounds. After reading Chip’s blog, How to Value an Oil Spill Claim–Not an Easy Task, I sincerely hope that everyone involved in this oil mess is properly trained in business valuation losses. Sometimes, as a result of inadequate or improper training, insurance companies can … Continue Reading

An Insurer’s Actions May Excuse Mitigation Requirements

(Note: This Guest Blog is by Corey Harris, an attorney with Merlin Law Group in the Tampa, Florida, office. This is part of a series he is writing on post-loss duties).  I recently took the deposition of an independent adjuster who worked on behalf of one of the larger insurers in the state. While most … Continue Reading

Consequences of a Policyholder’s Failure to Mitigate

(Note: This Guest Blog is by Corey Harris, an attorney with Merlin Law Group in the Tampa, Florida, office. This is part of a series he is writing on post-loss duties). Think about this for a moment. A homeowner accidentally leaves something in the oven before heading off to the mall for an afternoon of … Continue Reading