What does Passive Loss mean? Read on to discover the definition & meaning of the term Passive Loss - to help you better understand the language used in insurance policies.
An economic loss not associated with any physical damage or injury. For example, if a hospital is inadvertently built with elevators too narrow to accommodate a gurney, the owner has incurred an economic "loss," but only in the sense that the property is not functional. The owner must either absorb the reduction in property value or incur additional expenses to correct the problem.
We hope the you have a better understanding of the meaning of Passive Loss.