|Constructive total loss|
A term used in insurance, particularly marine insurance, where a ship is not completely lost but has been abandoned because the cost of saving it would exceed its value when saved. The insured may treat it as a total loss, or partial loss. In the latter instance he claims for damage done, in the former instance he gives notice of abandonment and the insurer takes over all rights.
|Reference: The Penguin Business Dictionary, 3rd edt.|