Consequential Loss

Consequential Loss is defined as an indirect loss occurring from damage sustained to the insured’s property or equipment.  This includes but is not limited to natural disasters and fire or theft.  The coverage is designed to diminish indirect risks from these unfortunate occurrences.  Indirect loss for example, could arise from a reduction or cessation of income from regular business activities. Consequential loss insurance coverage is therefore designed to provide financial support to substitute financial losses while repairs are being effected.  This provision is usually in place to cover fixed monthly expenses that are compulsory and still occurring even if no business is being carried out at the location.  The funds provided can remain in place until business operations and financial returns are back to normal.  Consequential loss insurance is usually sold alongside business insurance or property insurance but must be purchased separately. Get covered today.