Loss Of Use Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Loss Of Use, written in plain English, along with examples of how it is used.
What is Loss Of Use?
(n) Loss of Use is the loss on account of deprive in using an article, property, vehicles etc in consequence of a damage or failure or other problems caused to them, arise out of a wrong doing by a person
History and Meaning of Loss Of Use
Loss of Use is a term commonly used in insurance and legal contexts. It refers to the inability to use a particular asset or property, typically due to some form of damage or destruction. The concept of Loss of Use has been around for many years and has been incorporated in various legal structures worldwide. The term has its roots in early common law, where damages were assessed based on the value of the loss.
Insurance providers and lawyers have since established distinct definitions of Loss of Use, distinguishing it from other kinds of damages like compensatory, punitive, and consequential. In practice, the amount recoverable for Loss of Use typically depends on the specific circumstances of the case, including factors like the asset's value, the extent of the loss, and the duration of the deprivation.
Examples of Loss Of Use
If a car is damaged in an accident, the owner may not be able to use it until it is repaired. During this time, the owner incurs Loss of Use.
A landlord may suffer Loss of Use of a rental property if it is damaged and becomes uninhabitable, which may result in loss of potential rent and income.
If a manufacturer's equipment is damaged, it may need to be repaired or replaced, causing a delayed production schedule, resulting in a loss of revenue due to loss of use.
Legal Terms Similar to Loss Of Use
Compensatory damages - An award given to compensate for the loss or injury sustained by a person or entity.
Punitive damages - An amount awarded to punish a party for wrongdoing.
Consequential damages - The loss that occurs as a consequence of a breach of contract or wrongful act.