WAEC - Insurance (2018 - No. 44)
A manufacturing company whose production was abruptly stopped by fire incidence would have its claim for loss of earning settled under the class of
fire insurance
all risk insurance
product liability insurance
consequential loss insurance
Explication
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.