Legal Definitions - actual loss

Actual loss refers to an undesirable outcome of a risk that results in the disappearance or reduction of value, usually in an unexpected or unpredictable way. It can be calculated by determining the difference between the original cost of something and its later selling price.

Examples of actual loss include:

• A car being totaled in an accident, resulting in a decrease in its value
• A property being damaged by a natural disaster, causing financial detriment to the owner
• A person losing possession of their phone, resulting in the loss of its value

These examples illustrate how actual loss can occur in various situations and result in financial harm to individuals or entities.