Economic loss doctrine

{
  "id": "MLC-T-INS-001254",
  "term": "Economic loss doctrine",
  "field": "Insurance and risk management",
  "definition": "A legal principle that bars a plaintiff from recovering purely economic losses in tort actions, particularly in product liability or negligence cases, when there is no accompanying personal injury or property damage. This doctrine aims to maintain the distinction between contract law and tort law, directing parties to seek remedies for economic losses through contractual agreements. It prevents tort law from undermining the allocation of risk negotiated by parties in a contract.",
  "url": "https://mlchart.com/terminology/insurance/economic-loss-doctrine/"
}