What is direct consequential loss

Generally, the direct loss would be the difference between the contract price and the market price of those goods or services. This is the normal loss. The consequential losses are any other losses beyond this measure that are caused by the breach and not too remote.

What is the difference between a direct loss and an indirect or consequential loss?

Direct losses refer to the physical or structural impact caused by the disaster such as the destruction of infrastructure caused by the force of high winds, flooding or ground shaking. Indirect effects are the subsequent or secondary results of the initial destruction, such as business interruption losses.

What is the meaning of consequential losses?

What Is Consequential Loss? A consequential loss is an indirect adverse impact caused by damage to business property or equipment. A business owner may purchase insurance to cover any damage to property and equipment, and may also obtain coverage for secondary losses.

What is an example of a direct loss?

Direct Loss Example\n\n If a tornado strikes a town and takes the roof off the building, a direct loss would include damage to the structure, as well as to equipment, furniture, inventory or other items inside. Fire and smoke damage would count as a direct loss. So would theft, or a car crashing through the front window.

Which is an example of a consequential or indirect loss?

Till the owner purchases a new set of machinery, the operations will remain halted. This loss due to the halting of daily business operations is an example of consequential loss as it is an indirect loss. It is not covered under the insurance for direct losses.