Definitions for "Direct Loss"
The immediate consequence of the action of an insured peril. A fire-damaged structure is a "direct loss" by fire. In contrast, see Consequential loss.
Loss of, or damage to, the primary subject of the insurance agreement which is the immediate result of a hazard insured against. It is frequently very difficult-to determine whether a loss is direct or consequential.
Loss which is a direct result of a peril. Also includes loss due to efforts to end the peril or to unavoidable exposure following a peril.
Keywords:  realised, penalty, incurs, firm, risk
The direct financial penalty that a firm incurs as a result of a risk being realised.