Consequential Loss Refers to the value of loss resulting from the use of property. This form of coverage protects the Insured for the loss of net earnings due to the loss of a key supplier's inability to operate as a result of damage or destruction of its property. This guarantees that a reinsurance company will pay losses incurred by a Third Party even though that Third Party has no contractual arrangement with the reinsurance company. Debris Removal Used in property insurance and provides for the reimbursement for the removal of debris resulting from an insured peril. Deductible Refers to the amount of loss that the Insured pays in a claim amount.
Deductibles apply to both direct damage to property and business interruption losses.
Direct damage losses call for an agreed amount that the Insured will pay before the Insurer pays. The deductible amount in a business interruption contract is often referred to as a 'waiting period or elimination period'. This waiting period refers to the length of time an Insured must wait before any benefits from the policy are paid. Defense Costs Refers to the expense of defending a lawsuit. Ideally the Insured should require a policy which pays all the defense costs in addition to the policy limits.