FINANCE|insurance
- caillteanas iarmhartach Reference Faomhadh an téarma seo mar chuid de Thionscadal Lex
- ga
- consequential damage | conloss | consequential loss
- en
- Definition loss incurred as a result of being unable to use business property or equipment Reference Investopedia > Consequential loss. http://www.investopedia.com/terms/c/consequential-loss.asp#axzz1lbbw9tQT [6.2.2011]
- Comment Consequential loss is considered an indirect loss (as compared to losses from the direct damage). Direct damages would be covered under different types of insurance, such as property/casual or fire insurance, but the firm still incurs the costs of lost operations.Say, for example, that a major storm causes some property damage to a storefront. The business owner’s property/casualty insurance may cover the amount needed to replace the property, but what about the lost revenue while the store is closed? All of the owner's fixed costs such as rent continue, but there's no money coming in. These are consequential losses, and can be covered under business interruption insurance, of which there are several types.Insurance to compensate for consequential losses can also cover situations where no direct damage is done to property, but loss of revenue occurs because of things like a power outage or breach of contract from a supplier or business partner.