exali Glossary
Your encyclopedia of technical terms used in the insurance industry
The insurance industry is full of technical terms—from insurance policies and obligations to recourse claims. To help you keep track of everything, the exali glossary explains the main insurance terms in a simple, understandable, and practical way.
In the exali glossary, you will find not only definitions, but also practical examples, legal information, and references to the appropriate insurance coverage. This way, you always know where the risks lie—and how to protect yourself against them.
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Financial Loss (Pure/Real Financial Loss)
Financial loss is a financial disadvantage incurred by a person or company—for example, due to a consulting error, faulty programming, or incorrect mail. This is damage that does not result from personal injury or property damage, but is directly felt in the wallet.
Distinction: Real vs. unreal financial loss
Real financial loss: The financial disadvantage arises directly – without any personal injury or property damage having occurred beforehand (e.g., due to a planning or consulting error).
An example of a real/pure financial loss: An IT service provider makes a mistake when programming an online shop. The shop is then down for days. The loss of revenue for the shop operator is the financial loss for which the IT specialist is responsible. This is a genuine financial loss.
Non-genuine financial loss: The financial disadvantage is the result of personal injury or property damage – e.g., loss of earnings after an accident at work.
An example of non-genuine financial loss: An IT freelancer accidentally knocks a customer's laptop off the table during a meeting. This damages the hard drive and the customer can no longer access important data. They have to hire a data recovery company to restore the data. The IT freelancer has to pay the costs. This is a case of non-genuine financial loss, as the customer's financial loss resulted from the property damage to the laptop.
You can find all the information here on Financial Loss Insurance.
Term: Financial Loss (Pure/Real Financial Loss)
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