Any legally enforceable obligation. If the loss is covered by the insurance policy, the payment is made directly to the party that suffered the loss. The maximum amount of insurance that can be paid for a covered loss. The basis for an insurance claim. For example, a loss occurs when the quality or value of an automobile is reduced due to an accident.
Insurers also refer to losses as payments made on behalf of the insured.
Medical Payments Insurance. Each insured person's insurance company pays for certain financial losses, such as medical expenses and lost wages, regardless of who caused the accident. In exchange for these benefits, the right to sue may be restricted in some cases. The cause of a loss. Perils include theft, glass breakage, flood, hail and fire.