What does Loss Limitation mean? Read on to discover the definition & meaning of the term Loss Limitation - to help you better understand the language used in insurance policies.
An optional feature of a retrospective rating plan that limits or "caps" the amount of loss (usually at the $100,000 level, or more) that would otherwise be applied to the calculation of premium. An additional premium is charged for this feature by means of an "excess loss premium" (ELP) factor.
We hope the you have a better understanding of the meaning of Loss Limitation.