(insurance) A reduction in the quantity, quality, or value of something. Marine cargo insurance losses can occur from a wide variety of reasons including theft; piracy; barratry (unlawful acts by the master or members of a vessel’s crew); jettisoning (throwing cargo overboard in time of emergency to save a ship at sea); sinking of a vessel; cargo or containers going overboard in a storm or as a result of improper stowage; damage to cargo while loading, shifting during voyage, or unloading; or exposure to the elements; to name but a few.
The losses can be partial or total, and the delay of delivery of perfectly maintained goods can result in loss of market. The types and extent of losses covered by the insurance policy are stated in detail within the contract. When a loss occurs is not the best time to be reviewing contract details for the first time.