An insured’s business is damaged by a fire, and temporarily shut down for repairs. As a result, the insured suffers loss of income. What type of loss is the loss of income?
Indirect or consequential
The loss of income in this scenario is categorized as consequential or indirect loss. This type of loss is not a direct result of physical damage to the insured’s property, but rather a consequence or impact of the damage. In this case, the insured’s business was temporarily shut down for repairs due to the fire damage, which resulted in a loss of income. The loss of income is a financial consequence of the physical damage caused by the fire, and is covered under most standard business interruption insurance policies.
More Answers:
Understanding Beneficiaries: The Importance of Selecting and Updating Designations for Your AssetsUnderstanding Annual Renewable Term (ART) Insurance: Coverage, Renewals, and Costs
Underwriting for Insurance: Gathering and Verifying Applicant Information for Accurate Risk Assessment
Error 403 The request cannot be completed because you have exceeded your quota. : quotaExceeded