Insurance terminology explained in simple terms
Financial Loss (Pure/Real Financial Loss)
Pecuniary damage or loss is known as financial loss. Pure or real financial loss is financial damage that is not a result of property damage or personal injury.
Here is an example of real/pure financial loss: An IT service provider makes a mistake when programming an online shop. The shop is then down for days. The loss of sales by the shop operator is the financial loss for which the IT specialist is responsible. It is a pure/real financial loss.
Here is an example of consequential loss: An IT freelancer accidentally knocks a client’s laptop off the table during a meeting. This damages the hard drive and renders important data inaccessible. He has to hire a data recovery company to restore the data. The IT freelancer has to pay the costs for this. This is consequential financial loss, as the client’s financial loss resulted from the property damage to the laptop.
You can find all the information here on Financial Loss Insurance.
Term: Financial Loss (Pure/Real Financial Loss)
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