MANAGEMENT

Detailed explanation-1: -A consequential loss is a loss that follows another loss that is caused by a danger that has been insured against. The loss of ongoing profit because of the inability to continue trading is a consequential loss.

Detailed explanation-2: -Insurance Policy for Consequential Loss For example, a business might stop operations due to a flood or extended power outage and sustain loss of revenue. Plus, business interruption insurance could also protect a business against loss of income if a breach of contract dispute occurs.

Detailed explanation-3: -By definition, therefore, consequential losses are exceptional and often not recoverable. Direct loss is the natural result of the breach in the usual course of things. Most foreseeable kinds of loss are direct, including financial losses such as loss of profits and loss of business or goodwill.

Detailed explanation-4: -Consequential Insurance A policy that provides protection against loss of profits in business due to an interruption in business consequent upon an insured peril and claim admitted under the material damage policy.