In the claims adjustment process, what does "mitigation" refer to?

Mitigation in the context of the claims adjustment process refers specifically to taking steps to prevent further loss or damage after an initial incident has occurred. This is a critical aspect of managing claims effectively, as it can significantly reduce the overall severity of a loss. For instance, if a property has suffered water damage, mitigation actions could include shutting off the water source, removing standing water, or employing drying equipment. By taking prompt action to limit additional damage, the overall cost of the claim can be minimized, which benefits both the insurer and the insured.

In contrast to mitigation, collecting evidence involves gathering information and documentation related to the incident, which is a separate process. Negotiating with policyholders pertains to discussions around the settlement of the claim, and calculating the total claim amount focuses on determining the financial impact of the loss. While all these activities are essential in the claims process, only mitigation specifically addresses the need to control and limit damage after a loss has occurred.