Wordings Library
Claims expenses
Clause explained
Claims Preparation Costs
Pays agreed professional costs incurred to prepare and quantify an insured claim.
01
Meaning
Pays agreed professional costs incurred to prepare and quantify an insured claim.
02
Why insurers use it
To support complex claim presentation while controlling advisers, scope, and expenditure.
03
Effect on coverage
Usually subject to a sublimit and may exclude legal fees, public adjusters, or coverage disputes.
04
Illustrative example
A forensic accountant prepares a business-interruption loss calculation.
05
Claim consequence
Unapproved or out-of-scope fees may not be reimbursed even when the underlying loss is covered.
06
What the insured should negotiate or check
Check eligible advisers, prior consent, sublimit, legal-fee exclusion, deductible, and whether the limit is additional.
Policy-wording boundary: This is educational analysis. Confirm the complete policy, schedule, endorsements, applicable law, and written insurer position for any specific placement or claim.