What is ground up loss in reinsurance

Ground Up Loss — the entire amount of an insurance loss, including deductibles, before application of any retention or reinsurance. The original loss to the insured, after recognizing known salvage and subrogation.

What does ground up losses mean?

Ground-Up Loss\n\n In insurance, the gross amount of loss occurring to an insured and subject to the insured's insurance policy, beginning with the first dollar of loss and prior to the application to the deductible or deduction, if any, required by the policy.

What does ground up mean in reinsurance?

Ground-up loss is the total amount of loss that is covered by an insurance policy. Ground-up loss does not include deductibles paid by the insured, nor does it include liabilities ceded to a reinsurance company.

What are the 2 types of losses in insurance?

Direct Loss Insurance and Indirect Loss Insurance Coverage\n\n Business insurance policies will usually specify that they cover "direct losses" and physical loses in the case of damage caused by a disaster.

What is ground up cover?

'ground up'—this type of cover is the opposite of excess of loss cover and will cover all losses, including small losses, from the first dollar upwards. 'top up'—this type of cover can be purchased when the insured is under-insured.