Allocated Loss Adjustment Expense (ALAE) Calculator

Purpose: To estimate the direct costs of managing a specific insurance claim.

How to use: Input estimated costs for each relevant ALAE category. If a category doesn't apply to your hypothetical claim, enter '0'.

Legal & Litigation Costs

Costs for legal representation (e.g., $200/hr x hours).
Fees for court filings, transcripts, etc.
Costs for medical experts, accident reconstructionists, engineers.

Investigation & Assessment Costs

Costs for external investigators (e.g., for fraud detection).
Costs for doctors to perform independent evaluations of injuries.
Costs for property appraisers, vehicle damage assessors.

Other Claim-Specific Costs

Fees for independent claims adjusters.
Costs to dispose of salvaged property or pursue recovery from third parties.
Costs associated with alternative dispute resolution.
Any other specific, non-indemnity costs directly tied to this claim.

Estimated Total ALAE

Total Legal & Litigation Costs: --
Total Investigation & Assessment Costs: --
Total Other Claim-Specific Costs: --

Overall Estimated ALAE:

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