The word “consequential” means something following as an effect or result. It is an indirect result of the occurrenceAn event that results in an insured loss. In some lines of insurance, such as liability, an occurrence is not necessarily an accident (something sudde... More that causes the loss.
The difference between a direct loss and a consequential lossThe word “consequential” means something following as an effect or result. It is an indirect result of the occurrence that causes the loss. The di... More can be seen in the destruction of a power station by wind. The damage to the power station is a direct loss by wind. There is actual physical damage directly resulting. The destruction of the power station also interrupts the generation of power by the station. For example, a cold storage plant is without electrical power. Foodstuffs spoil as a result or as a consequence. This is a consequential lossThe word “consequential” means something following as an effect or result. It is an indirect result of the occurrence that causes the loss. The di... More, not a direct loss.