What is the duty called that an injured party has to minimize further injury or loss?

The correct answer is the concept known as mitigation of damages. This principle mandates that an injured party, after sustaining a loss or injury, must take reasonable steps to reduce or minimize any additional losses that may occur as a consequence of the initial incident.

The goal of this duty is to prevent the injured party from allowing the situation to worsen unnecessarily. For instance, if someone is injured in a car accident, they have a responsibility to seek medical attention promptly to avoid further complications. This requirement helps ensure that damages are fair and just, as parties cannot claim compensation for losses that could have been avoided through reasonable actions.

This principle is an integral part of insurance accounting and claims management, as it influences the outcomes of claims and the assessment of liability. By ensuring that loss is mitigated, the overall costs of claims can be controlled, impacting both the insurer's and the insured's financial outcomes.