Consequential Loss (or Damage)

(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

See Also: Carrier / Insurance Company / Underwriter; Cash Value; Cash surrender value; Casualty; Captive Agent; Capitalization or Leverage; Capital; Capitation; Cap; Crop Insurance;

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