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
Information needed for underwriting a life insurance policy, such as an applicant's age, weight, height, and build; personal and family health record; occupation; and personal habits. These ...
Endorsement to an automobile policy that pays specified amount for towing and related labor costs. ...
process of discovering sources of loss concerning the liability risk faced by individuals and business firms. The first step in risk management is to identify the causes of a loss by ...
Association whose membership is composed of surety bonding companies. The association's primary purpose is to act as a rating bureau for member companies by collecting statistics and ...
Same as term Direct Response Marketing: method of selling insurance directly to insureds through a companies own employees, through the mail, or at airport booths. The company uses this ...
Insurance company that specializes in underwriting casualty insurance. ...
Statement made by agent or broker in written form attesting to the insured that the insurance policy is in effect. This statement is prepared by the agent or broker, unlike the binder, ...
Funds receivable or payable that have not been paid in a timely manner, commercial credit insurance protects an insured against declines in the value of receivables due to insolvency of a ...
Conducting of maritime suits involving ocean marine insurance policy claims before an admiralty court. ...
Have a question or comment?
We're here to help.