Notice of Loss
Definition - What does Notice of Loss mean?
A notice of loss is refers to the process of an insurance policyholder informing their insurance company that they have experienced a loss. This is the first step to getting reimbursed for a covered loss. The individual policy indicates the procedure to submit a notice of loss.
Notices of loss are also known as claim reports or first reports.
Insuranceopedia explains Notice of Loss
It is not up to the insurer to check up on a policyholder to determine whether they have experienced any losses. Instead, policyholders must instead officially communicate it to their insurer to start the claim payout process. Upon receiving a notice a loss, an insurer examines and investigates the claim for legitimacy and determines the benefit amount to award to the policyholder. Because insurance fraud does take place and causes insurers significant losses, it is critical to evaluate every claim.