Salvage loss

A loss which it is presumed would, but for certain services rendered, have become a total loss. The charges incurred are "salvage charges". The property saved is the "salvage". When referring to goods a salvage loss is one resulting from shipwreck or from a situation where, by the peril of the sea, the vessel is prevented from proceeding on her voyage and the cargo, or the part that is saved is obliged to be sold at a place short of the port of destination. The term is used in marine insurance when at a point short of destination, it can be shown that it would cost more to forward damaged goods to their destination than the goods would realize on the spot. The underwriters usually pay the difference between the total insured value and the net proceeds of the goods, such a settlement being known as a "salvage loss".