The total loss approach is a method for reviewing all accidents and near miss incidents and placing a strong emphasis on developing measures to prevent similar accidents from occurring in the future. This method also requires that all potential causes for accidents be evaluated and that controls be established for these exposures as well.
Safeopedia explains Total Loss Approach
The total loss approach requires that damage to property, equipment and lost time be considered when planning for the elimination potential of accidents or injuries. These considerations are made for both accidents and near-miss scenarios that have occurred within the workplace. This approach requires a strong commitment from company leadership on down-to-line employees, and the belief that accidents and injuries are preventable must be strongly held.
This definition was written in the context of Occupational Health & Safety