As insurance recovery attorneys, we spend a large chunk of ourtime fighting insurance companies in court, and another large chunknegotiating claim settlements. Obviously we feel strongly thatlitigation is all too often the only viable course for apolicyholder pursuing the coverage they've paid for.

We also recognize, however, that litigation is a last resort —and more often than not, avoidable on fair terms. Policyholders cando much, throughout the claim process, to expedite and maximizerecovery without resorting to litigation.

Maximizing recovery requires an understanding of the economicsof insurance. Insurance companies make money by minimizing theirloss ratio (the ratio of premiums to claims payouts) and maximizingfloat (the time lag between premium collection and claims payout).Effective claims pursuit requires policyholders to exert timepressure, minimizing float, and to provide copious informationpromptly, facilitating the insurance company's own reinsuranceclaim and thus boosting its loss ratio.