Settlement of loss paid out (8)
I believe the answer is:
disposal
'settlement' is the definition.
(thesaurus)
'loss paid out' is the wordplay.
'out' indicates an anagram (out can mean wrong or inaccurate).
'loss'+'paid'='losspaid'
'losspaid' with letters rearranged gives 'DISPOSAL'.
'of' is the link.
(Other definitions for disposal that I've seen before include "arrangement" , "Riddance" , "Getting rid of something" , "Deployment - management" , "Jettisoning" .)