In Marine insurance this gives an insured the right to abandon lost or damaged property and still claim full settlement from an insurer subject to certain restrictions. For example, until the 1980s the Titanic which sank off Newfoundland in 1912, was deemed to be unrecoverable and the Commercial Union Assurance Company had paid its owners for this loss due to sinking.

A clause in fire insurance policies and other property forms that prohibits the insured from abandoning partially damaged property to the insurer in order to claim a total loss.

Term used in the marine insurance industry in which the clause gives an insured the right to abandon lost or damaged property and to claim full settlement from the insurer.