What is Consequential loss claims?

Consequential loss claims refer to damages that arise as a secondary result of an event, typically related to a breach of contract, negligence, or an insured risk. Unlike direct losses, which are immediate and foreseeable, consequential losses can include lost profits, business interruption, and other indirect damages. These claims often require clear evidence to establish the link between the initial incident and the subsequent losses. In many contracts and insurance policies, consequential losses may be excluded or limited to minimize liability.