Indirect Loss Insurance Example
Business interruption is the most obvious example. If a tornado destroys the roof of a store, not only are there rebuilding costs, but the business cannot operate until the damage is fixed.
What is an indirect loss?
A loss or damage that results from an insured's inability to use his/her property because of direct loss to the property of others.
What are examples of indirect damages?
Indirect damages are those that do not occur as the direct result of the accident but, rather, because of other damages that the victim incurred. For example, lost wages, loss of earning capacity, and loss of household productivity are just a few examples of indirect damages.
What is indirect financial loss?
Indirect Losses means loss of profits, loss of use, loss of production, increased operating costs, loss of business, loss of business opportunity, loss of reputation or goodwill or any other consequential or indirect loss of any nature, whether arising in tort or on any other basis.