Legal Definitions - progressive loss

Progressive loss refers to a type of detriment or damage that does not occur instantly or as a single event, but rather develops, worsens, or accumulates gradually over a period of time. It implies a continuous, incremental deterioration, an ongoing reduction in value, or a steady increase in harm.

Here are some examples illustrating progressive loss:

• Business Context: A software company releases a new product with a subtle, unaddressed bug. Initially, only a few customers report minor issues. However, over several months, as more users encounter the bug and it causes data corruption for a growing number of clients, the company experiences a progressive loss of customer trust, subscription renewals, and ultimately, market share. The financial and reputational damage accumulates steadily rather than occurring in one sudden blow.

  This illustrates progressive loss because the negative impact on the company's reputation and financial standing wasn't an immediate, one-time event, but rather a gradual and worsening decline over an extended period due to an ongoing underlying problem.

• Insurance/Property Context: A commercial building has a small, unsealed crack in its foundation. Over several years, rainwater seeps through this crack, slowly eroding the soil beneath, causing the foundation to settle unevenly, and leading to increasing structural stress and interior damage like wall cracks and misaligned doors. An insurance claim for this would likely involve a progressive loss, as the damage accumulated incrementally over a long duration due to a continuous, unaddressed cause.

  This example demonstrates progressive loss because the structural damage to the building did not happen all at once but developed and worsened gradually over an extended period due to a persistent environmental factor.

• Personal Injury/Medical Context: Following a workplace accident, an employee sustains a back injury that initially causes mild discomfort. Despite treatment, the condition slowly deteriorates over the next two years, leading to chronic pain, nerve damage, and a significant reduction in mobility, eventually preventing the employee from performing their job duties. The employee suffers a progressive loss of physical function and earning capacity, as their health and ability to work steadily declined over time.

  This illustrates progressive loss because the individual's physical impairment and the resulting impact on their ability to earn income were not static but continually worsened and increased over an extended period, reflecting a gradual deterioration of their health and financial well-being.