First-Loss Policy

In sports, it’s also known as the “take my ball and go home” policy...faced with their first loss, a player just gives up.

In finance, it refers to a type of insurance coverage. Specifically, it represents a type of policy in which everyone involved (both the insured and the insurance company) state that the amount of coverage would not be enough to replace the items getting insured. The policy covers a certain limited amount, rather than the full replacement cost.