COVID-19 NOTICE: Due to the current Pandemic, we will be limiting public access to our offices.

We are still working to service your insurance needs, but please contact your broker by phone or email only.

Consequential Loss

The word “consequential” means something following as an effect or result. It is an indirect result of the occurrence that causes the loss.

The difference between a direct loss and a consequential loss 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 loss, not a direct loss.