What type of loss results from a direct loss?

The correct choice is consequential loss, which refers to the financial impact that arises as a result of a direct loss. When property is damaged or destroyed due to an insured event, such as a fire or theft, the immediate damage represents a direct loss. However, the consequences of that loss—such as lost income, additional expenses incurred while the property is being repaired, or diminished value—constitute consequential losses.

Understanding this distinction is critical in insurance practices as policies often treat direct and consequential losses differently. For instance, many insurance policies cover direct losses but may exclude or limit coverage for consequential losses, so comprehending the implications of a direct loss and its fallout is essential for policyholders and insurance professionals alike.

In contrast, other options do not accurately represent the type of loss that results from a direct loss. Indirect losses refer to non-immediate damages that may arise but are generally not synonymous with consequential losses. Supplementary and integrated losses are terms not typically used in the context of property and casualty insurance loss types, which can lead to confusion in understanding their definitions and applications in claims scenarios.