Loss Sustained

Loss Sustained

Loss Sustained refers to a policy condition under which only losses sustained during the policy period qualify for coverage. Coverage depends on when the insured experiences the loss, not when it is discovered or reported. The term commonly appears in crime, fidelity, and similar insurance policies. Do not confuse this term with Actual Loss Sustained. Although the names are similar, Actual Loss Sustained refers to how the insurer measures the amount payable, not when coverage applies. See also: Loss Discovered.