Loss is the financial harm, damage, or liability incurred by an insured, whether or not it is ultimately covered under the policy. In insurance contracts, the policy definition of "loss" specifies which types of financial detriment qualify for indemnity, such as damages, settlements, judgments, defence costs, or investigation expenses. Whether a particular loss is insured depends on the policy's insuring clause, applicable exclusions, definitions, and conditions. The distinction between total loss sustained and covered loss (the portion actually indemnified) is fundamental to claims assessment and policy interpretation.
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