total loss

/ˈtoʊtəl lɒs/
noun phraseIntermediate💡 complete destruction or irreparable damage
formal

A situation where an asset is completely destroyed or damaged beyond repair, making it worthless.

The flood caused a total loss of the warehouse inventory.

The warehouse contents were completely ruined by the flood.

💡

Commonly used in insurance to describe when the cost of repairs exceeds the asset's value.

💰Finance
Finance

A financial loss that cannot be recovered.

The company wrote off the investment as a total loss.

The company decided the investment was irrecoverable and stopped trying to recoup it.

💡

Used in accounting and investment contexts.

Collocations

declare a total lossto officially state that something is irreparably damagedwrite off as a total lossto account for something as irrecoverable

Related Phrases

partial lossphrase
damage that can be repaired
write-offphrase
to account for a loss as unrecoverable

💡Pro Tip

Insurance Context

In insurance, 'total loss' means the asset is beyond repair and the insurer pays its full value.

Gold Rule

Legal Implications

A 'total loss' declaration can affect insurance claims and financial reporting.

📖Word Origin

From 'total' (complete) + 'loss' (damage or financial setback). Common in insurance and finance since the 20th century.

📝Usage Notes

Often used in legal and financial contexts to describe irreparable damage or financial setbacks.

Word Breakdown

total
complete or entire
root
+
loss
damage or financial setback
root
English Dictionary