What is SHOCK LOSS?

When an insurance firm suffers a loss that causes financial distress because the clients loss is so severe. Protection can be provided using reinsurance mechanisms and diversification. Refer to clash loss.

More On This Topic




Link to This Definition

Did you find this definition of SHOCK LOSS helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary