What does Consequential Damages mean? Read on to discover the definition & meaning of the term Consequential Damages - to help you better understand the language used in insurance policies.
Consequential damages are an indirect result of a direct loss. Lost profit, lost rents, and lost business opportunities are examples of consequential damages that could be incurred as a result of a direct physical loss to property. Consequential damages are a troublesome risk for most businesses because of the lack of a ceiling on the amount of the loss.
We hope the you have a better understanding of the meaning of Consequential Damages.