Total Loss Only (TLO) Insurance
Life is unpredictable so to compensate this, people have invented insurance. Insurance deals with unforeseen events. Sometimes insurance companies cover only a part of your losses and a few named perils, while sometimes it covers every damage imaginable and every mishap. If you are a driver, you might mistake the definition of total loss only insurance for total loss in a car accident, when the insurance company declares your car “totaled” - not worthy of any repairments.
A Total Loss Only insurance covers your goods only in the event they are completely destroyed and irrecuperable. It’s a low-cost insurance policy if you compare it with All Risk insurance.
Shipping companies rely a lot on Total Loss Only (TLO) insurance because this limits a lot the amount of damage they are responsible for so they don’t lose money unless the merchandise was stolen, completely destroyed by fire or the ship sank.
Total Loss Only insurance is also available for people who have to move their belongings to their new house. By federal law, most moving companies have to offer at least two kinds of insurance for shipments, but TLO is not included. This kind of moving insurance covers the goods only in the event of a catastrophe. Check with your agent to understand better what catastrophe means for your insurance company. This kind of insurance can be purchased any time before you start packing, in comparison to All Risk insurance, which cannot be purchased later than two days before packing.
For those who do not work with a moving company, TLO insurance might be the only alternative left. This type of policy will cover your goods only if you lose everything or your goods are damaged beyond repair.
For marine cargo, Total Loss Only insurance is the only insurance available for self-packed parcels or boxes. It doesn’t provide coverage for partial loss or damage.
In case of damage or loss, make sure you file a claim as soon as possible. Do not postpone that or you may find your claim was not timely enough to qualify for any reimbursement or compensation.
Popular Insurance Terms
Coverage for bodily injury and property damage liability excluded under standard ocean marine insurance. Coverage includes protection of wharfs, docks, and harbors; bodily injury; cost of ...
Payment of benefits by an insurance policy to a policy owner (usually the insured) if a loss occurs. ...
Total limit of coverage under all policies applicable to the covered loss for which an insured can be indemnified. For example, if two health insurance policies are in force on the same ...
laws enacted by all of the 50 states whose purpose it is to reduce or eliminate the volunteer's civil liability exposure. An ideal law would exclude the volunteer from civil liability ...
Camera and related equipment coverage found in inland marine insurance. ...
Professional designation earned after the successful completion of four national examinations given by the insurance institute of America (IIA). Covers such areas of expertise as insurance ...
recipient. insurance company that receives a premium payment from a payer. insured or beneficiary who receives a loss or benefit payment from an insurer. ...
Insurance contract that cannot be cancelled by the insurance company. Since the insurance policy is a UNILATERAL CONTRACT instead of a BILATERAL CONTRACT, the INSURED may cancel at will. ...
Plan under which life insurance is substituted for retirement income. Under the plan, a married individual selects a single life annuity payout from the pension plan, which will generate ...
Have a question or comment?
We're here to help.