In insurance terms, what is a primary example of a direct loss?

A primary example of a direct loss is vandalism to property because it involves physical damage to the insured asset itself. Direct loss refers to damage that occurs directly to the property as a result of a specific event, which in this case is vandalism. When property is vandalized, the tangible objects and structures are harmed, leading to an immediate financial impact that is typically covered by property insurance.

In contrast, business interruption, loss of rental income, and legal fees for disputes are generally considered consequential losses or indirect losses. These types of losses arise as a result of direct loss events but do not involve direct damage to the property itself. For instance, business interruption refers to the loss of income due to operational halts caused by damage, while loss of rental income is linked to tenants vacating an area that has been damaged. Legal fees for disputes arise from the process of resolving issues related to losses but do not directly stem from physical damage to property.