What is a loss only deductible?

A loss only deductible, which is also commonly referred to as first dollar defense, is a deductible type that will only apply in the event that there is a settlement of a claim.

This means that if you are sued, and there are defense costs and other types of incidental costs, they’re not going to apply to your deductible. Your deductible is only going to apply in the event that there is some type of loss, i.e. settlement.