What does First Loss Policy mean? Read on to discover the definition & meaning of the term First Loss Policy - to help you better understand the language used in insurance policies.
First Loss Policy
Type of partial insurance (which covers less than the full value of goods or property at risk) where both the insured and the insurer acknowledge that the 'subject to average' (see average) rule does not apply. These policies cover only the estimated largest possible loss, and are used commonly in the burglary or theft insurance where the possibility of total loss is extremely remote (such as in case of a large store).
We hope the you have a better understanding of the meaning of First Loss Policy.