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Aug 10, 2023 · What Is Consequential Loss? A consequential loss is an indirect adverse impact caused by damage to business property or equipment.
Aug 21, 2024 · Consequential loss refers to the indirect and secondary damages that arise as a consequence of a primary event or incident, often involving businesses, insurance, and legal contexts.
Consequential loss (also known as indirect loss) arises from a special circumstance of the case, not in the usual course of things. 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 .
Jun 9, 2023 · 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. In other words, it is an indirect loss. Property insurance typically covers primary damage to a building or structure.
Feb 6, 2023 · Consequential loss is a type of business interruption insurance. It helps cover collateral damage that might happen because of damage to things like property and equipment. Essentially, a business can purchase insurance to cover an adverse impact that comes from damage to a tangible unit.
Jun 20, 2022 · What are consequential losses and how do you exclude them? There are effectively only two categories of loss for breach of a contract – direct and indirect losses. ‘Consequential loss’ and ‘indirect loss’ mean the same thing (British Sugar Plc -v- Projects Ltd [1997] EWCA Civ 2438).
May 11, 2023 · Consequential loss refers to losses that may arise indirectly from a breach of contract, and allocating liability for consequential loss can be a highly negotiated point when parties agree to the terms of a contract.
Nov 1, 2023 · Consequential loss is an indirect loss that occurs as a consequence of a direct loss. Understanding consequential loss is crucial for individuals and businesses as it can greatly impact the extent of coverage provided by insurance policies.
Consequential loss. In general terms, loss that does not directly result from a breach of contract and would ordinarily be considered too remote to be recoverable, but which, in special circumstances, may still be recoverable.
A consequential loss is a loss that has been incurred as a result of being unable to use equipment within a commercial property, or being unable to use the property itself. For example, if a natural disaster or accident causes damage to a shop and it is therefore unable to trade, this loss of revenue would be considered a consequential loss.
