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First-Party Insurance Claims:
 Recovering Preparation Expense.

Most attorneys, in presenting an insurance claim against their client= s own insurer, don= t use a coverage contained in many policies of casualty insurance: the Claims Preparation Expense Clause.

Policies insuring a business against property loss commonly contain a clause something like the following.

1. We will pay for all reasonable expenses you incur to assist us in (a) the investigation of a claim; (b) the determination of the amount of loss, such as taking inventory; or (c) the cost of preparing a statement of loss and other supporting exhibits. 2. . . . The deductible does not apply to these expenses. [Note: notice that this clause does not specify that the insurer has requested the assistance.]

Most attorneys don=t use the claims preparation expense clause in their client= s policy. They don=t use because . . . .Read article or download, in PDF format.

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