A manufacturing company whose production was abruptly stopped by fire incidence would have its claim for loss of earning settled under the class of
-
A.
fire insurance -
B.
all risk insurance -
C.
product liability insurance -
D.
consequential loss insurance
Correct Answer: Option D
Explanation
What is ‘Consequential Loss’. A consequential loss is an indirect loss resulting from an insured’s inability to use business property or equipment. A business owner may purchase insurance to protect them against the secondary loss of property and equipment due to a natural disaster or accident.