What is the definition of a loss?

FAQ Answer

Most policies contain similar definitions to those listed below, however, the Department recommends reviewing your specific policy for accurate definitions.   
Losses are broken down under three main coverages: 

  • Basic – named perils needs to be listed in the policy. 
  • Broad – named perils needs to be listed in the policy. 

Example of a named peril: 
Infectious Diseases – this includes loss caused by the complete interruption of your operations by an infectious disease acquired by your employees or staff. 

  • Special – covers any loss not excluded in the policy, must be direct physical loss. 

Example of an exclusion: 
Virus or Bacteria – any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease. 

Common Policy Verbiage: When Special is shown in the Declarations, Covered Causes of Loss means direct physical loss unless the loss is excluded or limited in this policy.

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