What does Consequential Loss mean? Read on to discover the definition & meaning of the term Consequential Loss - to help you better understand the language used in insurance policies.
A consequential loss is a loss occurring as the result of a business being unable to function normally due to damage to equipment or property or another peril. In other words, it is an indirect loss. Property insurance typically covers primary damage to a building or structure. However, it may not cover losses in sales or revenue that occur as a consequence of the initial damage.
We hope the you have a better understanding of the meaning of Consequential Loss.