Actual Loss Sustained

The actual loss sustained is a term used in the insurance industry to measure the true impact of a covered incident or event. It is the amount of the loss that is considered the actual loss, regardless of the amount paid out under the terms of an insurance policy. 

Actual loss sustained is the amount of damage or loss resulting from an incident or event after all other costs have been considered. This includes repairs, replacements, and additional expenses related to the incident. It is the calculated amount of the loss after any deductibles, policy limits, or other factors are considered. 

The actual loss sustained is an essential concept in insurance because it allows insurers to determine the actual economic impact of a loss or incident. It determines the amount of insurance coverage necessary to protect the policyholder’s assets adequately. 

In conclusion, actual loss sustained is a term used to describe the total economic damage sustained due to an incident or event. It is the amount of the loss that is considered the actual loss, regardless of the amount paid out under the terms of an insurance policy. It is an essential concept in the insurance industry as it allows insurers to determine the actual economic impact of a loss or incident and the amount of coverage needed to adequately protect the policyholder’s assets.