Consequential Loss

Definition

  • The financial damages an entity takes from the loss of a property's use. For example, if a business's property is damaged in a fire and the company cannot continue to operate until the property is repaired or replaced, the lost business would be considered a consequential loss and these losses would need to be covered by a business interruption insurance policy in order for the insured to receive payment.

Synonyms
special damages, financial loss, consequential damages, lost profit

Related Terms and Acronyms

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