Proof of Loss
Definition - What does Proof of Loss mean?
Proof of loss refers to the legal document a policyholder files to their insurance company to claim coverage for a loss. Once submitted, this document is reviewed. The insurer determines whether to approve the claim and thereby cover the loss or not. Accordingly, the claimant (policyholder) will either receive or be denied any amount for the loss.
Insuranceopedia explains Proof of Loss
An insurance contract determines the amount of money the insured would receive after experiencing a loss. To receive compensation, they must file a notarized proof of loss document. In it, the policyholder specifies the liability, the amount of loss, and includes other necessary supporting documents. For example, a driver who just got into an accident might include the police report as documentation of the incident and an estimate from a repair shop to document the amount of loss. Moreover, it is important for the policyholder to understand the terms and conditions of filing a proof of loss as certain steps may have to be followed and the document likely must be filed within a certain number of days after the loss occurs.