Indirect Damage

Damage which is not the immediate direct consequence of the peril against which insurance has been taken but flows nevertheless, somewhat remotely from that peril. E.g. a fire may damage a business premises and somewhat more indirectly interrupt the business. The business interruption claim is indirect damage. Similar situations occur where a property is rented and the income for the rent is required in order to meet a mortgage or where the property is rented from another and is destroyed by fire. The loss of rent is indirect damage.