constructive total loss
- A situation in marine insurance when the expenses to mend or reclaim a vessel or its contents surpass the value of the vessel or its contents
- The damages from the storm were so severe that the ship was declared a constructive total loss by the insurance company.
- After the collision at sea, the financial evaluation showed a constructive total loss due to the excessive repair costs.
- The cost to recover the sunken cargo far exceeded its value, resulting in a constructive total loss for the insurance company.