Documents vary in nature and value. Material damage policies provide cover only in respect of the cost of the materials and the cost of labour in reinstating the documents. There is no cover for consequential loss. Professional indemnity policies cover ‘all risks’ on the insured’s own documents and those for which the insured is responsible. They also cover the insured’s legal liability for loss of documents. See COMPUTER SYSTEM RECORDS.

The marine equivalent of ‘loss of use. A shipowner, who loses the use of his ship through an insured peril insures for ‘loss of engagements’.
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Where a ship owner is deprived of the use of a ship through an insured peril, e.g., collision, the loss consequential on loss of engagements is insurable.

As a separate head of claim it was abolished by the Administration of Justice Act 1982. However, if the claimant’s expectation of life has been reduced, any award for pain and suffering may take account of the claimant’s anguish caused by his awareness of this reduction.

Insurance for shipowners who may lose a charter as a result of a casualty. The insurance pays an amount per day for a certain number of days per year (e.g. 90, but could be 360) once a ‘time deductible’, e.g. 14 days, has been exceeded. Cover follows the International Hull Clauses but excludes total loss.

Covers commercial pilots against the risk of temporary grounding or loss of licence on medical grounds. The amount payable is a multiple of the pilot’s annual salary cover. The underwriting factors are: type of flying done; geographical limits; flying experience and type of aircraft flown; previous health record; previous licence invalidations.

A change in the nature or character of cargo, vessel or other property (e.g. bicycle crushed by steamroller) so that it is no longer the type of property that was insured. See ACTUAL TOTAL LOSS.
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There is said to be loss of specie when property the subject of insurance is so damaged that it ceases to be a thing of the kind insured, as where a motor cycle is crushed or clothes are burnt to ashes.

Inability to use property, e.g. a motor car, during period of repair or replacement. Some insurers provide temporary replacement cars under comprehensive policies. Otherwise the loss, which is consequential, is not covered under material damage insurance and this is often reinforced by a loss of use exclusion. ‘Loss of use’ may be claimed against a negligent third party. Under houshehold policies the cost of alternative accommodation is covered when the property cannot be occupied following insured damage. See LOSS OF USE (AVIATION).

An insurance to safeguard an aircraft owner against loss of earning capacity when the aircraft is laid-up for repair following an accident. The benefit is as an amount per day subject to a time excess. Cover operates only when a claim is admitted under the hull policy.

UK: an amount payable by a reinsurer to a cedant in consideration of the release of the reinsurer from all or part of the liability arising under a reinsurance contract in respect of claims incurred prior to a specified date (see also outstanding claims portfolio and premium portfolio).
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REINSURANCE,REFERENCE: See: Loss Portfolio Transfer.
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UK: The liability of an insurer for the unexpired portion of the in-force policies or outstanding losses or both for a specified segment of the insurer’s business for which reserves have been made. See LOSS PORTFOLIO TRANSFER; LOSS PORTFOLIO ENTRY; LOSS PORTFOLIO WITHDRAWAL.

A reinsurer may accept, at inception or renewal of a treaty, responsibility for the cedant’s loss portfolio from the previous year(s). The reinsurer thus pays losses for a contractually defined set of earlier losses in return for the unearned premium.