What are possible causes of uninsured losses?

Uninsured losses can arise from several sources, and the option identifying conversion and undocumented damage accurately reflects common causes of such losses. Conversion refers to the unauthorized use or control of someone else's property, which can lead to a loss not covered by insurance policies, especially if the incident is not documented properly.

Undocumented damage presents a significant risk because if damage occurs but there is no prior record or documentation, it becomes challenging to prove a claim or establish the extent of the damage. Insurers typically require evidence to support claims, and without documentation, these losses become uninsured.

While natural disasters, theft, and fraud are indeed causes of financial losses, they may often have specific coverage options provided by insurance policies, assuming the appropriate coverage has been selected. Thus, focusing on the nuances of conversion and undocumented damage highlights how specific situations can lead to uninsured losses due to the lack of proper coverage or validation for the incident.