Home > West's Encyclopedia of American Law > Salvage

The portion of goods or property that has been saved or remains after some type of casualty, such as a fire.

The term salvage is defined more specifically depending on the industry referring to it. In business, salvage is any property that is no longer useful but has scrap value. An example of business salvage is obsolete equipment. In insurance, salvage is the portion of property that the insurance company takes after paying the claim for the loss. The insurance company may deduct the salvage value from the amount of the claim paid and leave the property with the insured. In ADMIRALTY or maritime law, salvage is the compensation allowed to persons who voluntarily save a ship or its cargo from impending danger. In addition to compensation, maritime salvage may be property that is recovered from vessels that were shipwrecked, derelict, or recaptured. Salvage as a legal concept typically concerns maritime salvage.

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