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, lost profit, consequential damages, financial loss

Related Terms and Acronyms

• Accounts Receivable Insurance — Definition,
  • Insurance covering losses due to cash flow problems.
• Business Continuation Insurance — Definition,
  • Insurance that provides coverage in the event that someone integral to the operation of a business dies or becomes disabled.
• Business Interruption Insurance (BII) — Acronym, Important,
  • Insurance that covers losses in business income after an event interrupts business operations.
• Fire Insurance — Definition,
  • Insurance that covers losses from fire damage to insured assets.