Liquidated damages

{
  "id": "MLC-T-INS-002032",
  "term": "Liquidated damages",
  "field": "Insurance and risk management",
  "definition": "A pre-agreed amount of money specified in a contract that one party will pay to the other in the event of a breach. This sum is intended to be a reasonable estimate of the actual damages that would be incurred, rather than a penalty. In insurance, such clauses can affect the calculation of losses or subrogation claims.",
  "url": "https://mlchart.com/terminology/insurance/liquidated-damages/"
}