Which type of loss results as a consequence of a direct loss?

The type of loss that results as a consequence of a direct loss is referred to as an indirect or consequential loss.

A direct loss occurs when property is damaged or destroyed due to a specific event, such as a fire, theft, or natural disaster. This is the immediate impact of the event on the property itself. In contrast, an indirect or consequential loss arises as a result of a direct loss, typically affecting the policyholder's income or additional expenses incurred due to the primary loss.

For instance, if a business suffers a direct loss due to a fire that destroys its premises, the consequential losses might include lost income during the time it takes to rebuild and additional expenses such as temporary relocation. These types of losses can have significant financial implications, making it important for insurance policies to address them properly.

The other options do not align with this definition. Direct loss describes the initial damage, while accidental and nonaccidental losses pertain to different aspects of risk and events, rather than the subsequent financial impact of a direct loss. Understanding this distinction is crucial for comprehending how different types of losses are categorized in property and casualty insurance.