Loss that occurs as a result or consequence of an insured direct loss. (See also, Indirect Loss.)
In property insurance contracts, consequential losses are indirect losses, a reduction in the value of property that is a result of a direct damage loss. Usually associated with time element, other remote or indemnification type losses. Consequential losses are different than ensuing losses as consequential losses are indirect losses--not direct damage losses, where ensuing losses are further or additional direct damage losses that have been initiated by the original direct damage cause of loss.
A loss incurred by a payer which is a consequence of the direct loss suffered as a result of an erroneous Direct Debit transaction.
An indirect loss. For example in property insurance arising from the policyholder's inability to maintain or use the property over a period of time.
An indirect loss occurring as a result of some other loss.
Loss arising indirectly or as a consequence of a direct physical damage loss, including time element losses such as business interruption.
This is insurance covering the loss of profits of a business resulting from an insured event (also known as Business Interruption).
Indirect loss which occur as a "Consequence" of a direct loss. Includes Time Element coverages.
A financial loss that occurs as the consequence of some other loss. Also known as an 'indirect loss.'
An extra loss to the consumer which results from a failure in the goods or services they have bought - eg, you have your carpet cleaned but the cleaner doesn't remove your full length curtains. As a consequence your curtains get stained with cleaning fluid. You now have the cost of getting the curtains drycleaned. This cost is called a consequential loss.
A reduction in value of property (not physically damaged) caused by damage to other property. Examples are food spoilage from a change in temperature due to the damage of a refrigerator by fire, while the food itself is not damaged by the fire, or the reduction in the value of suit jackets whose trousers have been damaged.
A reduction in or loss of the value of property that had not been physically damaged resulting from direct physical damage to other property. Example: a freezer loses power due to an electrical fire in a remote section of a food warehouse, and the increase in temperature spoils the meat in the freezer.
It is also known as indirect loss. It is a financial loss occurring as the result of some other loss.
A loss resulting from, but not caused directly by, another insured loss. A "consequential loss" (spoilage of meat stored in a refrigerated building, for example) usually arises out of a change in temperature resulting from damage to the building (but not directly to the meat) by a covered peril such as fire. "Consequential Loss" coverages are available to protect the insured against this specific indirect loss.
Insurance of loss following direct damage e.g. loss of profits; loss of use insurance.
Financial loss occurring as the consequence of some other loss. Often called an indirect loss. Consequential loss or damage is indirect loss or damage resulting from loss or damage caused by a covered peril, such as fire or windstorm. In the case of loss caused where windstorm is a covered peril, if a tree is blown down and cuts electricity used to power a freezer and the food in the freezer spoils, iIf the insurance policy extends coverage for consequential loss or damage then the food spoilage would be a covered loss. Business Interruption insurance, extends consequential loss or damage coverage for such items as extra expenses, rental value, profits and commissions, etc.
An indirect consequence of direct loss to property. Business income may be lost when a store burns down, or frozen goods may spoil when windstorm causes an interruption of power. Consequential or indirect loss is not generally insured by policies covering direct damage (i.e., by fire or wind as in these examples), but insurance is readily obtainable separately for most such consequential exposures — business income coverage being among the most common.
An alternative name for Business Interruption or Loss of Profits insurance.
A loss caused only indirectly by a risk against which insurance is in force. For example, losses to power company customers as a result of downed lines.
(1) An indirect loss arising out of the policyholder's inability to use the property over a period of time, as opposed to a direct loss that happens almost instantaneously. Business Interruption, Extra Expense, Rents Insurance, and Leasehold Interest are the most common coverages included under the category of Consequential Loss coverages. (2) A loss not directly caused by a peril insured against, such as spoilage of frozen foods caused by fire damage to the refrigeration equipment. See also Indirect Loss, and contrast with Direct Loss.
A loss which is an indirect result of an accident or fire, e.g. food spoiled through breakdown of a refrigerator.
Refers to the value of loss resulting from the use of property. Business Interruption policies can be used to cover the loss of income - the consequential loss - until the business can reopen following a direct damage loss (fire, for example).
Insurance covering the loss of profits of a business and certain other costs resulting from fire or other insured event (also known as Business Interruption).
An indirect loss such as the reduction in value of property that is the result of a direct damage loss.
Consequential damage is loss or damage, which is not a direct result of a breach of contract, or negligence but occurs as an indirect but foreseeable consequence (e.g. lost future sales). A seller will normally exclude responsibility for such damages in the supply contract or terms and conditions of sale.
The word "consequential" means something following as an effect or result. It is an indirect result of the occurrence that causes the loss. The difference between a direct loss and a consequential loss can be seen in the destruction of a power station by wind. The damage to the power station is a direct loss by wind. There is actual physical damage directly resulting. The destruction of the power station also interrupts the generation of power by the station. For example, a cold storage plant is without electrical power. Foodstuffs spoil as a result or as a consequence. This is a consequential loss, not a direct loss.
A financial loss occurring as the result of some other loss. Also known as an indirect loss.
Another term for Business Interruption or Loss of Profits. Insurance cover for loss of revenue, profit and related cost following a material damage.
A loss directly arising from another loss.