constructive total loss

Definition of "constructive total loss"
  1. 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
How to use "constructive total loss" in a sentence
  1. The damages from the storm were so severe that the ship was declared a constructive total loss by the insurance company.
  2. After the collision at sea, the financial evaluation showed a constructive total loss due to the excessive repair costs.
  3. The cost to recover the sunken cargo far exceeded its value, resulting in a constructive total loss for the insurance company.

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