Which term describes the company's entitlement to recover for the costs of a loss incurred?

The term that accurately describes a company's entitlement to recover for the costs of a loss incurred is "salvage." Salvage refers to the rights that an insurer has to claim any remaining value of damaged property after a loss has occurred. This allows the insurer to minimize its financial losses by selling or recovering any usable parts from the damaged property.

In contrast, the concept of indemnity involves compensating the insured for a covered loss up to the limit of the policy, but it does not specifically address the insurer's right to recoup costs. The deductible is the amount that the insured must pay out of pocket before the insurance coverage kicks in; while arbitration refers to a method of resolving disputes between parties, it does not pertain to recovery after a loss. Understanding these distinctions helps clarify the role of salvage in the insurance process, reinforcing the significance of an insurer's right to recover costs from a loss.