How is "indirect loss" defined?

Indirect loss is defined as a loss that is not a direct result of a peril. This concept is essential in the field of insurance and claims adjustment, where losses can be categorized into direct and indirect types. While direct loss occurs as a straightforward consequence of a particular peril (such as a fire damaging a building), indirect loss arises from the secondary effects of that peril. For instance, if a business burns down and is unable to operate, the resulting loss of income during the time it takes to rebuild constitutes an indirect loss. Understanding this distinction helps public adjusters communicate effectively about the nature and scope of the losses being claimed and ensure that all aspects of a claim are appropriately addressed.