Total Loss
/ˈtoʊtl lɒs/
Definitions
- (n.) A legal or insurance term referring to the complete loss of property or asset, such that its value is reduced to zero or it is considered irrecoverable.
The insurer declared the vehicle a total loss after the collision rendered it beyond repair.
- (n.) In maritime law, the complete destruction or loss of a ship or cargo, entitling the insured to full compensation under a total loss claim.
The sinking of the vessel constituted a total loss under the marine insurance policy.
See also
Commentary
The term 'total loss' is crucial in insurance contexts to distinguish from partial loss, affecting indemnity and claim processes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.