Risk Of Loss Legal Meaning and Definition

Here is a simplified definition of the legal term Risk Of Loss.

Risk Of Loss (noun): It is a legal term referring to who has to bear the financial burden or who will be liable if the property is destroyed, damaged, or lost. It usually occurs in different situations including while an item is in someone's custody, during usage, or while under insurance coverage. The person or entity having the risk of loss is often expected to compensate or replace the property.