Some policies or packages include loss preparation costs in the basic coverage, usually under a clause referred to as, “professional fees.” Following are some examples.
This provision clarifies that “auditors fees” are covered, subject to whatever limit is shown. It is not clear, however, whether the insurer intends “auditors” to be used in a descriptive sense — meaning anyone who “audits” or compiles figures, or in a more defining way, limiting the term to an actual professional “auditor.”
This clause is intended for use with time element coverages. It limits coverage to the amounts which would be shown as limits of insurance for each location listed in the schedule, and to fees paid to “accountants or auditors.” It is unclear whether the insured can be reimbursed for anyone performing accounting functions such as a public adjuster who prepares the business interruption claim.
This clause, also used with time element coverages, seems to limit payment to the four professionals cited, and specifically excludes the insured’s own employees. Coverage is limited to the dollar amount listed or a percentage of the loss, whichever is smaller.
This clause, which only applies to fidelity claims, is quite open-ended—with no limitation on the amount of coverage available or the type of outside professionals that are used. It specifically excludes the cost of using the insured’s own employees.
No limit is shown for these extensions other than any applicable policy limits. Public adjuster and consultant fees are also specifically covered.
Some of the selected policies and endorsements that we examined, while providing loss adjustment fee coverage, severely limit the amount of insurance. Examples 11 through 13 illustrate that point.