Tough question because of "stolen or lost", but I'll address those later.
Regarding "damaged": if we're talking the usual dings and buckle rash, then absolutely. I've owned a number of frequently-played, well-worn basses over the years. Currently, it's the 2005 Sadowsky P5 in my avatar and below. Once it accumulated a few dings and rash, I stopped worrying about covering my belt buckle. Resale value is irrelevant as I will NEVER sell this bass. It also has some dings and wear on the front, including a mild divot in the pickguard above the pickup that proves that I am not diligent about "floating thumb".
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Note: most of my other basses are pristine or close to it, and I try to keep them that way. But the bass above is the one I bring to gigs in cramped conditions (and many other gigs as well).
As for "stolen/lost/damaged beyond repair" -- goes without saying that would be horrible for any bass I own, but I own a couple of basses that I bring to sketchy situations, and if goddess forbid one disappeared or got FUBARed, then I'd say "well that sucks, but I'm relieved that it wasn't one of my favorites".