What must an insured do if they need to mitigate losses after an incident?

When an insured experiences an incident that may result in a loss, taking immediate and necessary steps to minimize that loss is essential. This obligation is rooted in the principle of mitigation, which is a core expectation outlined in most insurance policies. The idea is that the insured must act reasonably to limit the extent of the loss or damage, as failure to do so could exacerbate the situation and lead to greater financial repercussions that might not be covered by the insurer.

Taking steps to mitigate losses can include actions such as securing a damaged property from further harm, making temporary repairs, or even removing items that could worsen the situation. These actions demonstrate the insured’s commitment to reducing the insurer’s potential payout and also support the insured’s claims process by showing that they acted responsibly following the incident.

In contrast, the other options do not appropriately address the immediate responsibilities of the insured:

• Filing a claim right away does not address the need to limit damages and could lead to unnecessary escalation of the loss.
• Waiting for the insurance adjuster could potentially delay the mitigation process, risking further damage and loss.
• Consulting with legal counsel before taking action could also introduce delays in addressing the immediate need to mitigate losses, which is counterproductive in the face of an incident requiring prompt action.