Life & Health · Chapter 2 · Perils, Losses & Hazards
Loss (Direct vs Indirect)
Definition
An unintentional decrease in value due to a peril. Direct loss: the peril damages the person/property with no intervening cause (the peril is the proximate cause). Indirect (consequential) loss: results FROM a direct loss.
Example
Fire destroys a restaurant (direct); the income lost while it's closed for repairs (indirect/consequential).
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms