What does Claims and Loss Control mean? Read on to discover the definition & meaning of the term Claims and Loss Control - to help you better understand the language used in insurance policies.
Claims and Loss Control
Claims and loss control is a strategy insurers use to reduce the risk of policyholders filing claims and thereby increasing the company's losses. Insurers may require or suggest that policyholders participate in certain activities or do certain things to manage their risk of loss. They often offer incentives for policyholders to follow through on these activities or actions. In this way, the policyholder can benefit from engaging in something that reduces their risk of incurring a loss and earning a side benefit from the insurer, while the latter benefits from reducing the risk of a claim being filed and paying out a benefit.
We hope the you have a better understanding of the meaning of Claims and Loss Control.