Economic losses refer to the reduction in value or wealth that occurs when an individual, business, or economy suffers damage or disruption. This can happen due to various factors, such as natural disasters, accidents, or market fluctuations. For example, when a hurricane strikes, it can destroy homes and businesses, leading to significant financial losses for affected communities. These losses can be measured in terms of lost income, decreased property values, or increased expenses. Insurance claims often help mitigate some of these losses, but not all damages are covered. Understanding economic losses is crucial for effective planning and recovery efforts in both personal and public sectors.