loss expense

  • The cost of investigation and adjustment of claims, as distinguished from the amount of a claimant’s recovery from the insurance carrier under the policy. Unallocated loss expenses are included in office overhead. Allocated loss expense is for expenses incurred outside the organization. Also called "loss adjustment expense."

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).