TYPES OF LOSSES

📉🔍 TYPES OF LOSSES

💥 WHAT IS A TOTAL LOSS?

ANSWER: A total loss occurs when the insured property is completely destroyed or damaged beyond repair, resulting in the inability to salvage or recover any portion of the property.

💼 WHAT IS A PARTIAL LOSS?

ANSWER: A partial loss, also known as a partial damage or partial loss, occurs when the insured property sustains damage or loss that is only partial in nature, allowing for salvage or repair.

🛠️ WHAT IS A CONSTRUCTIVE TOTAL LOSS?

ANSWER: A constructive total loss occurs when the insured property is not completely destroyed but becomes impractical or uneconomical to repair due to the extent of damage or loss.

🔄 WHAT IS A PARTICULAR AVERAGE LOSS?

ANSWER: A particular average loss refers to a partial loss or damage to the insured property that is incurred by the insured alone, without involving any general average contribution from other parties.

🌊 WHAT IS A GENERAL AVERAGE LOSS?

ANSWER: A general average loss occurs when sacrifices or expenditures are intentionally made during a maritime voyage to prevent a greater loss, and the resulting expenses are shared proportionally among all parties involved.

💼 WHAT IS A SALVAGE LOSS?

ANSWER: A salvage loss refers to the expenses incurred for salvaging or recovering the insured property or cargo from a perilous situation, such as shipwreck, grounding, or collision.

🌊 WHAT IS A SUE AND LABOR LOSS?

ANSWER: A sue and labor loss includes expenses incurred by the insured to mitigate or minimize a potential loss, such as expenses for temporary repairs, towing, and other measures taken to protect the insured property.

⚖️ WHAT IS A THIRD-PARTY LIABILITY LOSS?

ANSWER: A third-party liability loss refers to losses incurred by the insured due to legal liabilities arising from third-party claims for bodily injury, property damage, or other losses caused by the insured’s actions or negligence.

See also RE-INSURANCE

KEYWORDS: Types of Losses, Total Loss, Partial Loss, Constructive Total Loss, Particular Average Loss, General Average Loss, Salvage Loss, Sue and Labor Loss, Third-Party Liability Loss.

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