What term describes losses that emerge indirectly as a result of direct loss?

Consequential loss refers to the financial losses that occur as a secondary effect of a direct loss. When a primary loss happens—such as damage to property—there are often additional costs that arise as a result of that primary incident, such as loss of business income, extra expenses incurred, or other indirect effects that stem from the initial loss. This term captures the essence of how one event can lead to further financial burdens beyond the immediate damage.

In contrast, the other terms do not accurately reflect this relationship. Derivable loss and cumulative loss do not specifically pertain to the concept of secondary, resultant impacts from a primary event. Collateral loss typically refers to losses that occur at the same time or as part of the same event rather than as a result of the initial loss's aftermath. Therefore, consequential loss most accurately describes the financial repercussions that follow direct losses.