Definitions for "Consequential loss"
Loss that occurs as a result or consequence of an insured direct loss. (See also, Indirect Loss.)
In property insurance contracts, consequential losses are indirect losses, a reduction in the value of property that is a result of a direct damage loss. Usually associated with time element, other remote or indemnification type losses. Consequential losses are different than ensuing losses as consequential losses are indirect losses--not direct damage losses, where ensuing losses are further or additional direct damage losses that have been initiated by the original direct damage cause of loss.
A loss incurred by a payer which is a consequence of the direct loss suffered as a result of an erroneous Direct Debit transaction.