Legal Definitions - extraordinary loss

Definition: An unusual and infrequent loss, such as a loss resulting from a natural disaster.

Examples:

• A company experiences a significant loss due to a hurricane that damages their facilities and disrupts their operations.
• A business suffers a loss from a fire that destroys their inventory and equipment.

These examples illustrate how an extraordinary loss is a significant and unexpected event that can have a major impact on a company's financial performance. These losses are not part of the normal course of business and are typically not anticipated or planned for.