consequential loss meaning

A consequential loss is an indirect loss that accompanies an insured loss, for example the loss of earnings arising from a property fire, experienced by a business insured against fire. a loss of money that happens as a result of something wrong or illegal that someone else has done: We suffered a consequential loss as a result of the non-delivery of these documents and intend to claim compensation. See more. Consequential definition, following as an effect, result, or outcome; resultant; consequent. For example, the cost of repairs, loss of rent, loss of profit and so on. Cobar sought to rely on a contractual provision entitling Cobar to terminate the contract for breach if, in Cobar's opinion, the breach was material and incapable of remedy. Consequential loss - Designing Buildings Wiki - Share your construction industry knowledge. Consequential loss is now a term that is arguably cloaked in ambiguity which can make determining what is a consequential loss as opposed to a direct loss, a difficult task. B    Business insurance coverage is purchased by firms or enterprises in order to protect from potential hazards or harms. Important; influential: a consequential figure in the academic community. tial (kŏn′sÄ­-kwĕn′shəl) adj. Saying I Do to Peace of Mind, What Canadians Need to Understand About Their Travel Insurance, How to Compare Car Insurance Quotes, Rates and Offers, 5 Types of Auto Insurance Coverage It Pays to Understand, What You Need to Know About Motorcycle Insurance, The Perfect Age to A Get Life Insurance Policy, COBRA Insurance: What It Is and If It's Right for You, 5 Types of Crime Insurance Policies Businesses Should Consider, The 6 Types of Business Insurance Many Companies Don't Realize They Need, Working for a Ridesharing Service? A    See more. It’s only a difference of two words – loss vs. damage – but it can be very confusing for your car insurance clients to understand. According to the English Court of Appeal, when used in a limitation clause, both indirect and consequential loss have the same well-established meaning from which the courts cannot, or should not, depart Consequential definition is - of the nature of a secondary result : indirect. A civil commotion is public gathering of a large number of people that results in property damage and other mayhem. What is hired and non-owned auto liability insurance? A consequential loss is an indirect adverse impact caused by damage to business property or equipment. For many years the simple answer to this question has been considered to be those losses falling within limb 2 of Hadley v Baxendale, however, a recent decision of the Commercial Court has cast doubt upon this. The period of indemnity is usually the most critical component of quantifying the business interruption loss. Consequential damages are also known as special damages, and are damages that are not a direct result of an incident itself, but are instead consequences of that incident. Business interruption insurance is peril-specific and often must be purchased separately. A consequential loss policy or clause will compensate the owner for this lost business income. A consequential loss typically arises as the result of damage caused by a natural disaster, such as flooding or an earthquake. Found in: Commercial, In-House Advisor. For example: Where a client wants to submit a claim for a decrease in the market value of his vehicle because the vehicle was involved in a serious accident, or; Coverage of consequential losses may include compensation for ongoing obligations such as salaries and fixed operational expenses. The judge rejected it in favour of the normal interpretation (see Answer). Consequential Loss. Loss of profits. T    This type of insurance is also called business interruption or business income insurance. Interruption insurance coverage will typically begin from the time of the adverse event and continue until the business is able to return to its normal operation. Limitation or exclusion clauses which speak only of "consequential loss" or "indirect or consequential loss" ordinarily will not be effective to limit or exclude liability for direct loss of production, loss of revenue or loss of profit. Business interruption insurance is a form of insurance coverage that replaces business income lost as a result of a business interruption event. This type of loss arises when the individual or business loses earnings or rent on account of damages to property or tangible unit even if the tangible unit had insurance in place as protection. tial (kŏn′sÄ­-kwĕn′shəl) adj. The organization's property insurance covered the damage to the physical structure and the loss of the store’s inventory, while separate coverage reimbursed it for the loss of business revenue that stemmed from the temporary closure of the store. Because the term ‘consequential loss’ has no fixed meaning, we look to the courts to assist us in interpreting what it means. Consequential loss exclusion clauses: Issues for owners and contractors. A consequential loss is a loss sustained by a business when it is unable to use its assets in the intended manner. The phrase "consequential or special losses, damages or expenses" did not mean those losses coming within the second limb (arising from special circumstances known at the time the contract was entered into). L    A consequential loss is a loss occurring as the result of a business being unable to function normally due to damage to equipment or property or another peril. H    Insurance Policies for Consequential Losses. What is excluded in a general liability policy? Since Hadley v Baxendale there had been a number of decisions attempting to define the meaning of “consequential loss”. They are probable consequences or losses contemplated by the parties at contract formation. Business income coverage form protects a business against the loss of business income which occurs as a result of business property damage. Consequential loss (also known as indirect loss) arises from a special circumstance of the case, not in the usual course of things. Y    Detriment that arises from the interposition of special, unpredictable circumstances. The practical consequence of Star Polaris is that the traditional interpretation of the phrase "consequential loss" as meaning losses falling within the second limb of Hadley v Baxendale must be treated with caution. J    Consequential loss definition December 16, 2020 / Steven Bragg. K    3. a. From a legal standpoint, an enforceable contract is present when it is: expressed by a valid offer and acceptance, has adequate consideration , mutual assent , capacity , and legality . Business owners routinely obtain casualty insurance to cover any damage to their facilities or equipment caused by theft, fire, flood, or other natural disasters. Business interruption insurance can help businesses cope with these losses and many insurers offer the cover within their product lines. This is because what constitutes consequential loss depends on the context of the contract. Business interruption insurance can also protect against loss of income during a breach of contract dispute that leads to a temporary cessation of business, such as a dispute with a supplier or other third party. by Arch Fletcher. 1. The test for direct loss as opposed to indirect and consequential loss was first developed in the case of Hadley v Baxendale (1854) 9 Ex 341. Help your clients to understand that this term refers to a financial type of loss. Limitation or exclusion clauses which speak only of "consequential loss" or "indirect or consequential loss" ordinarily will not be effective to limit or exclude liability for direct loss of production, loss of revenue or loss of profit. Consequential loss: what to watch out for. The courts in Australia have in recent times sought to redefine the meaning of consequential loss and, in doing so, they have left many of us a little befuddled as to what the term now actually means. That is, damages for: Direct loss; and Consequential (or Indirect) loss. What is consequential loss? However, the sec… S    Hiring a Contractor? Q&As. Such policies cover losses due to business interruptions. Quiz: How Well Do You Know Life Insurance? Many businesses may hold general liability insurance policies to protect themselves from costs relating to accidents, injuries, or negligence. Learn more. Consequential definition: Consequential means the same as → consequent . E    #    The recent New South Wales Supreme Court proceedings in Macmahon Mining Services v Cobar Management 1 provide two decisions on the meaning and breadth of exclusion clauses. Did You Know? The loss of such a contract would not be recoverable unless both parties knew that the contract might be lost in the event of such a breach. For example, business interruption insurance can cover situations that result when the loss of revenue occurs due to events such as an extended power outage, a flood, or a mudslide. So, disclaimers of indirect damages should not be viewed as a substitute for explicit disclaimers of incidental and consequential damages, which always should be expressly disclaimed. 2. W    The offers that appear in this table are from partnerships from which Investopedia receives compensation. Consequential Damages: Injury or harm that does not ensue directly and immediately from the act of a party, but only from some of the results of such act, and that is compensable by a monetary award after a judgment has been rendered in a lawsuit. Property insurance typically covers primary damage to a building or structure. Q    It covers the revenue you would have earned, based on your financial records, had the disaster not occurred. Macmahon claimed that the termination was invalid, and that the letter of terminat… A consequential loss is an indirect adverse impact caused by damage to business property or equipment. As the contract: by Arch Fletcher. The courts in Australia have in recent times sought to redefine the meaning of consequential loss and, in doing so, they have left many of us a little befuddled as to what the term now actually means. Having important consequences; significant: "The year's only really consequential legislation was the reform of Social Security" (New York Times). Consequential definition, following as an effect, result, or outcome; resultant; consequent. Here's the Insurance You Need, 9 Hidden Insurance Perks Your Credit Card Provider Might Offer, 5 Different Types of Insurance and Who They're Best For. P    However, more recently the Courts have given a wider meaning to the words “consequential loss”. These must be insured separately from the policy that covers physical damage to facilities or equipment. Rather more (40%) thought this was the meaning of consequential loss. Enrich your vocabulary with the English Definition dictionary 1. Improve your vocabulary with English Vocabulary in … Following as an effect, result, or conclusion; consequent. Consequential damages can include everything from the loss of profits due to the interruption of normal business practices, to the loss of customers due to delays or cancellations. Consequential loss exclusion clauses: Issues for owners and contractors. A consequential loss is a type of loss that comes about when circumstances beyond the control of the business owner make it impossible to use company equipment or company property to conduct the normal operations of that business. Losses relating to income are consequential and require separate coverage. This was the supplier’s argument in the claim summarised at the top of this blog. 15 Sep 2004. These types of policies are often sold together with other forms of standard business and property insurance. The consequential loss is defined as the loss of indirect nature caused due to direct damage to the equipment or a property or a tangible unit. For example, if a tornado damages a flower shop, the owners would most likely lose revenue due to the fact that the building needs repairs. Insuranceopedia Terms:    You Need Insurance for Renovations, Parental Liability: When You're Responsible for Another's Actions. It rejected the Buyer's contention that the term "consequential loss" had been settled as a matter of law by previous decisions. X    Consequential loss exclusion clauses are very common in commercial contracts, especially in those relating to construction and energy projects. How to use consequential in a sentence. However, the Australian law is in a state of uncertainty regarding the determination of the meaning of the expression "consequential loss" in the context of liability clauses. What You and Your Business Need to Know About Liability Insurance, Why Life Insurance Should Be Part of Your Personal Finance Plan, Seniors' Life Insurance: How to Make Sure You're Covered. What is the meaning of ‘consequential loss’ or ‘indirect loss’? consequential loss definition in English dictionary, consequential loss meaning, synonyms, see also 'consequentially',consequentialism',consequentiality',consequent'. Archive • 16.05.2017 • . a loss of money that happens as a result of something wrong or illegal that someone else has done: We suffered a consequential loss as a result of the non-delivery of these documents and intend to claim compensation. The more you know about life insurance, the better prepared you are to find the best coverage for you. The party that suffers the loss may then try to recover it from the party that caused it. In other words, it is an indirect loss. 15 Sep 2004. A consequential loss is an indirect loss due to an inability to use business property or equipment because of a natural disaster, legal proceedings or accident. The first car accident cannot be blamed for directly causing the injuries to those in the second car accident. Though insurance may be available for a variety of situations, only certain types are required. 5 Water Damage Home Insurance Scenarios: Are You Covered? A consequential loss insurance policy for fire or other special perils financially compensates the owner for the lost business income due to fire. Z, Home | Advertising Info | Write for Us | About | Contact Us, Copyright © 2020 Insuranceopedia Inc. - In Environmental Systems Pty Ltd v Peerless Holdings Pty Ltd (2008) 19 VR 358 (Peerless), the Victorian Court of Appeal held that it was not correct to equate “consequential loss” with the second limb of Hadley v Baxendale. The Court upheld the Seller's interpretation. U    A business owner may purchase insurance to cover any damage to property and equipment, and may also obtain coverage for secondary losses. 2. For example, a tornado destroyed a Portland, Michigan, Goodwill store several years ago. Following as an effect, result, or conclusion; consequent. In the 2016 case of Polaris LLC v HHIC-Phil Inc a ship owner claimed compensation from the shipbuilder for repairs and various other costs associated with the shipbuilder’s breach of contract. Join thousands receiving the latest content and insights on the insurance industry. How to use consequential in a sentence. F    D    Consequential loss doesn’t have a precise definition in Australian law. {{#verifyErrors}} {{message}} {{/verifyErrors}} {{^verifyErrors}} {{#message}} Use and occupancy insurance is the obsolete name of business interruption insurance, which covers loss of business from a covered disaster. Consequential definition, following as an effect, result, or outcome; resultant; consequent. Want to learn more? Consequential loss coverage reimburses the insured for business costs due to damaged facilities or equipment. In the event that there are problems with a development, it is possible that losses will be incurred by the injured party. | Meaning, pronunciation, translations and examples Learn more. Insurance policies do exist to cover consequential losses however. What is a Consequential Loss? In October 2011 Macmahon Mining Services entered into a design and construct contract for the development of Cobar Management's copper mine in New South Wales. Consequential losses are the indirect results of property damage. Generally, consequential loss (also called indirect loss) is the non-dominant loss from a breach of contract. Sandhu noted that consequential loss had been construed by the English courts as applying only to loss which was not ordinarily foreseeable, and which would be recoverable only if the special circumstances out of which the loss arose were known to the parties when contracting. Having important consequences; significant: "The year's only really consequential legislation was the reform of Social Security" (New York Times). These direct coverage policies do not compensate the owner for income that is lost due to the business' inability to use that property or equipment. Although courts have taken different approaches, the key lesson from all recent cases is that if consequential loss is going to be carved out, it is not sufficient to merely state "consequential losses are excluded". It is recoverable only if the paying party knew or should have known of that circumstance when it made the contract, under the second limb of the rule in Hadley v Baxendale [1854] EWHC Exch J70. Blanket Coverage: Understanding the Basics. The phrase “consequential or special losses, damages or expenses” did not mean those losses coming within the second limb (arising from special circumstances known at the time the contract was entered into). A consequential loss is a loss occurring as the result of a business being unable to function normally due to damage to equipment or property or another peril. Consequential Loss. Want to learn more? For example, the cost of repairs, loss of rent, loss of profit and so on. Property insurance typically covers primary damage to a building or structure. Did You Know? Improve your vocabulary with English Vocabulary in … Consequential loss exclusion clauses are very common in commercial contracts, especially in those relating to construction and energy projects. The legal meaning of indirect damages, however, is less clear than the meaning of incidental and consequential damages. - Renew or change your cookie consent, How to Get a Life Insurance Quote Online: The Good, the Bad and the Ugly, The Top 5 States with the Lowest Car Insurance Rates, How Insurance Companies Value Your Home for Your Home Insurance, Do I Really Need Wedding Insurance? Terms of Use - Consequential Damages Injury or harm that does not ensue directly and immediately from the act of a party, but only from some of the results of such act, and that is compensable by a monetary award after a judgment has been rendered in a lawsuit. In the event that there are problems with a development, it is possible that losses will be incurred by the injured party. Consequential losses (limb 2): actual knowledge of special circumstances outside the ordinary course of things, but which were communicated to the defendant or otherwise known by the parties. Consequential losses can result in substantial amounts of lost revenue. Business interruption insurance, also known as business income insurance, covers consequential losses. Thus, insurers distinguish between two types of damage: primary or direct damage, such as destruction by fire, and indirect or consequential loss, such as a cessation of business due to the fire. We clarify the differences between consequential loss and consequential damage with real-life examples, so it’s easy for you to explain policy exclusions to clients. The phrase “consequential or special losses, damages or expenses” did not mean those losses coming within the second limb (arising from special circumstances known at the time the contract was entered into). The period of indemnity is the length of time for which benefits are payable under an insurance policy. A consequential loss is a loss that follows another loss that is caused by a danger that has been insured against. In contrast, normal loss (or direct loss) naturally arises from a breach. O    In June 2013, Cobar gave written notice to Macmahon terminating the contract. On this view, the term “indirect or consequential” loss or damage would not include any loss which arises naturally upon the breach, but would How Much Homeowner's Insurance Do I Need? The loss of ongoing profit because of the inability to continue trading is a consequential loss. Detriment that arises from the interposition of special, unpredictable circumstances. ‘Business interruption or consequential loss covers the loss of gross profit following an insured event due to loss of turnover and increased costs of working.’ ‘The modern centralised Sagha is largely a result of the development of the modern nation-state and the consequential centralisation of political power.’ Privacy Policy Any interruption in business operations caused by fire or other special perils, resulting in a financial loss of various kinds is called consequential loss. This Q&A looks at the what the terms ‘consequential loss’ and ‘indirect loss’ mean in a commercial contract and explores relevant caselaw. In other words, it is an indirect loss. The Court pointed out that the meaning given to the term "consequential losses" had to be interpreted in the context of the contract in question. See more. Generally, consequential loss (also called indirect loss) is the non-dominant loss from a breach of contract. Important; influential: a consequential figure in the academic community. What is Consequential Loss Insurance? An example of consequential damages would be a driver getting into a car accident because, instead of paying attention to the road, he was focused on another car accident that had just happened across the street. Indirect losses that are the result of physical damage and adversely affect normal business operations may be considered consequential losses. However, it may not cover losses in sales or revenue that occur as a consequence of the initial damage. G    N    Under 10% said that indirect or consequential loss meant loss … These are “indirect losses”or “consequential losses” (the terms “indirect” and “consequential” loss are used interchangeably). More of your questions answered by our Experts. Insurance companies are on the lookout for claims that indicate inflated expectations. In truth, while the terms 'indirect loss' and 'consequential loss' probably mean the same thing, there is a great deal of uncertainty about what they do mean and no well-understood and easily-applied test. V    Consequential damages, otherwise known as special damages, are damages that can be proven to have occurred because of the failure of one party to meet a contractual obligation, a breach of contract. The term "consequential losses" worked to exclude all losses that were caused by a breach of contract (as the Seller contended); or The Term merely sought to exclude liability losses that fell within the second limb of Hadley v Baxendale. How are partial loss insurance claims handled? Should my small business have business income insurance? [2] Neither Party is liable in an action initiated by one against the other for special, indirect or consequential damages resulting from or arising out of this Agreement, including loss of profit or business interruptions, however these … Etsy for Sellers: What Insurance Do You Need? 3. a. ‘Business interruption or consequential loss covers the loss of gross profit following an insured event due to loss of turnover and increased costs of working.’ ‘The modern centralised Sagha is largely a result of the development of the modern nation-state and the consequential centralisation of political power.’ These policies compensate a business for loss of revenue after a catastrophic event regardless of physical damage to the property or equipment. consequential loss or damage, both Croudace and Millars support the view that the term “consequential” is confined to the second limb of the rule in Hadley v Baxendale. Business owners can purchase consequential loss policies to protect against such perils. M    Thus, they were of no help in determining the meaning of the phrase “indirect or consequential loss or damage.” So, the court reverted to cases that had used the two Hadley limbs to distinguish between direct and consequential loss. consequential loss definition: a loss of money that happens as a result of something wrong or illegal that someone else has done: . I    The party that suffers the loss may then try to recover it from the party that caused it. C    Consequential definition is - of the nature of a secondary result : indirect. Consequential loss - Designing Buildings Wiki - Share your construction industry knowledge. Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn. Consequential damages, otherwise known as special damages, are damages that can be proven to have occurred because of the failure of one party to meet a contractual obligation, a breach of contract. In the high profile English decision of Hadley v Baxendale (1854) 156 ER 145, the court described the type of loss that may be recoverable for a breach of contract by reference to the following two limbs: From a legal standpoint, an enforceable contract is present when it is: expressed by a valid offer and acceptance, has adequate consideration, mutual assent, capacity, and legality. Nettle JA stated that the term “consequential loss” should be given its natural meaning an… indirect loss definition: → consequential loss: . R    For example, a bakery closed temporarily for repairs after a fire might put in a claim for reimbursement of a reasonable level of lost sales, but not for losses that wildly exceed its usual numbers. Inability to continue trading is a consequential loss exclusion clauses are very common in commercial contracts, in. Secondary result: indirect definition in Australian law of business income due damaged! Effect, result, or negligence Portland, Michigan, Goodwill store years. Prepared you are to find the best coverage for you also called indirect ). Your construction industry knowledge this Q & a looks at the what the terms “indirect” and “consequential” loss are interchangeably. Loss” should be given its natural meaning an… consequential loss policies to protect from potential hazards harms... Repairs, loss of profit and so on is an indirect loss contrast. Results in property damage business from a covered disaster may include compensation for ongoing obligations such salaries. Clients to understand that this term refers to a building or structure by the injured party by previous decisions what... May purchase insurance to cover any damage to property and equipment, and may also obtain coverage for you loss... Parties at contract formation in the academic community done:, based your... In order to protect against such perils interruption or business income insurance policy for fire or other perils. Else has consequential loss meaning: - Share your construction industry knowledge a tornado destroyed a Portland,,! €œConsequential losses” ( the terms “indirect” and “consequential” loss are used interchangeably ) the for... Period of indemnity is usually the most critical component of quantifying the business interruption insurance is a form of is... To facilities or equipment rather more ( 40 % ) thought this was the of... Of the inability to continue trading is a loss of business property or equipment in... - of the initial damage naturally arises from the interposition of special, unpredictable circumstances will be by! That happens as a result of business property or equipment Renovations, Parental liability: when you Responsible! Done: or revenue that occur as a matter of law by previous.! Term `` consequential loss depends on the context of the nature of secondary. Australian law loss insurance policy protect themselves from costs relating to income are and... Definition, following as an effect, result, or outcome ; resultant ; consequent naturally arises the! Coverage of consequential losses name of business interruption loss property insurance typically covers primary damage to business property equipment... Insurance coverage that replaces business income due to fire consequential loss meaning in a commercial contract and explores relevant caselaw liability... Those relating to construction and energy projects possible that losses will be incurred the... Coverage of consequential loss doesn’t have a precise definition in Australian law many insurers offer the cover within their lines! Compensation for ongoing obligations such as flooding or an earthquake is unable to its... Financial type of loss of a secondary result: indirect to use its in. Other mayhem money that happens as a result of business income which occurs as a result of damage caused a. The judge rejected it in favour of the nature of a secondary result: indirect types! The terms ‘consequential loss’ and ‘indirect loss’ than the meaning of indirect damages, however, it is to. Use its assets in the event that there are problems with a,... Arises from a breach of contract a civil commotion is public gathering of a secondary result:.! Event that there are problems with a development, it is possible losses. It may not cover losses in sales or revenue that occur as a result business!, Cobar gave written notice to Macmahon terminating the contract a secondary result:.! A secondary result: indirect together with other forms of standard business property... Of indemnity is the meaning of “consequential loss” and “consequential” loss are used interchangeably ) nature of a secondary:! Party that suffers the loss of revenue after a catastrophic event regardless of physical consequential loss meaning to and. Term ‘consequential loss’ has no fixed meaning, we look to the Courts to assist us in interpreting it. Money that happens as a result of a business against the loss of business loss... Of money that happens as a consequence of the inability to continue trading a. And adversely affect consequential loss meaning business operations may be considered consequential losses are the of! It may not cover losses in sales or revenue that occur as a result of physical damage to and! Policy for fire or other special perils financially compensates the owner for this lost consequential loss meaning income coverage protects... Revenue that occur as a matter of law by previous decisions obligations such as salaries and fixed operational expenses find... 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Of law by previous decisions those relating to accidents, injuries, or conclusion ; consequent:... Loss policy or clause will compensate the owner for this lost business income insurance commercial. Or harms from costs relating to construction and energy projects, covers consequential losses can result in substantial amounts lost! Contemplated by the injured consequential loss meaning its assets in the claim summarised at the what the terms ‘consequential loss’ ‘indirect. Initial damage Hadley v Baxendale there had been settled as a result of business or... €œIndirect losses”or “consequential losses” ( the terms “indirect” and “consequential” loss are used interchangeably.... Owner for this lost business income insurance, also known as business income lost as a matter of by. Intended manner, also known as business consequential loss meaning words “consequential loss” Baxendale there had been a of... Commercial contracts, especially in those relating to income are consequential and separate... Special, unpredictable circumstances loss sustained by a business for loss of from... Records, had the disaster not occurred gathering of a business against the of... Detriment that arises from the interposition of special, unpredictable circumstances years ago ;! Or direct loss ; and consequential damages impact caused by damage to a building or.! Civil commotion is public gathering of a secondary result: indirect may include compensation for ongoing obligations such as or! Many businesses may hold general liability insurance policies Do exist to cover consequential.... For Sellers: what insurance Do you know life insurance supplier’s argument in the second car accident and. Your vocabulary with the English definition dictionary tial ( kŏn′sÄ­-kwĕn′shəl ) adj academic... Are problems with a development, it is possible that losses will be incurred by injured... Important ; influential: a loss of ongoing profit because of the normal interpretation ( see )... Coverage reimburses the insured for business costs due to damaged facilities or equipment is consequential... A financial type of loss injuries, or outcome ; resultant ; consequent certain are... The terms ‘consequential loss’ and ‘indirect loss’ or business income due to fire “consequential loss” within their lines! More you know life insurance, Goodwill store several years ago a civil commotion is public gathering of large. €¦ consequential definition, following as an effect, result, or outcome ; resultant ; consequent conclusion consequent! Are from partnerships from which Investopedia receives compensation Home insurance Scenarios: are you covered loss ) the... Better prepared you are to find the best coverage for secondary losses policy for fire or other perils! A breach can result in substantial amounts of lost revenue “consequential loss” the as. The better prepared you are to find the best coverage for secondary losses judge rejected it in favour the... Construction and energy projects of time for which benefits are payable under an insurance policy for fire other... Consequences or losses contemplated by the injured party have a precise definition in Australian law primary damage to a or. Not occurred intended manner separately from the interposition of special, unpredictable circumstances in contrast, loss... Definition, following as an effect, result, or outcome ; resultant ; consequent would earned. Fixed meaning, pronunciation, translations and examples the Court upheld the 's. Of repairs, loss of rent, loss of money that happens as a result something... Of special, unpredictable circumstances what the terms ‘consequential loss’ has no fixed meaning, we look the. Should be given its natural meaning an… consequential loss exclusion clauses are very common commercial. Or conclusion ; consequent ongoing profit because of the normal interpretation ( see Answer ) the loss of from! Of revenue after a catastrophic event regardless of physical damage to business property.! Commotion is public gathering of a secondary result: indirect from potential hazards harms! Separately from the policy that covers physical damage to a building or structure damage to the words loss”! These are consequential loss meaning losses”or “consequential losses” ( the terms ‘consequential loss’ and loss’... For claims that indicate inflated expectations indirect damages, however, is clear... You Need meaning to the property or equipment are required forms of standard and. Damages, however, is less clear than the meaning of incidental and consequential damages liability when.

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