Larceny - It is a theft committed by a chance visitor to the premises
Latent defect - A hidden flaw that will, in time, cause property damage that is uninsurable. Such damage is uninsurable because the element of chance is no longer present.
Law of large numbers - An underlying principle of insurance; the larger the number of participants in a given arrangement, the more accurate the rate is to the exposure.
Legal liability - Any liability imposed on a person by a court of law
Liability - Damages payable for acts of omission, commission or negligence
Libel - Written defamation of another's reputation
Loss Adjustment Expense - Expenses incurred in the process of evaluating, defending and paying claims.
Loss Avoidance - A risk management technique whereby an activity that may result in the loss for a firm is avoided or abandoned.
Loss control - Any conscious action (or decision not to act) intended to reduce the frequency, severity, of accidental losses.