Concealed loss is the damage or loss of goods that is not immediately obvious upon delivery and is usually discovered after the packaging is opened and the contents are inspected. This can happen during transit when goods are mishandled, subjected to rough handling, or exposed to adverse conditions.
Concealed losses can lead to disputes between shippers and receivers, complicate insurance claims, and result in financial losses. Therefore, to address concealed losses effectively, businesses must thoroughly inspect goods upon receipt and document any issues promptly.
Example
When a company receives a shipment of electronics, the packaging appears fine, but upon opening, some items are found to be damaged. This hidden damage is a case of concealed loss.