In a standard claims workflow, which step typically follows the investigation?

• A. First notice
• B. Coverage analysis
• C. Liability assessment
• D. File closure

Answer: (C)

The main idea here is how the claim moves from fact-finding to fault assessment. After information is gathered in the investigation, the next essential step is liability assessment—determining who is at fault and to what degree. This judgment about responsibility guides how much to reserve for the claim and what settlement or defense strategy to pursue. Coverage analysis is important too, but it’s usually done alongside or just after the investigation to see what the policy will pay, not the immediate next step. First notice happens at the start when the claim is reported, and file closure comes after liability, reserving, and settlement decisions are resolved.