Economic Loss

8 months ago

Insurance Glossary Team

1 minute

Plain English Definition: Economic loss refers to a financial loss resulting from damage, injury, or business disruption.

What Economic Loss really means for someone with an insurance policy

Economic loss represents the financial impact of an event covered by an insurance policy, such as lost income, repair costs, or reduced business profits.

Economic Loss Real World Examples

A business loses revenue due to fire damage and claims lost income through its business interruption policy.
An injured person claims medical expenses and lost wages due to an accident.
Property damage requires costly repairs, leading to a financial claim under an insurance policy.