What are the two primary types of losses in insurance?

The two primary types of losses in insurance are direct and indirect loss. Direct losses refer to the immediate and tangible damages that occur as a result of an event, such as damage to property or theft. These are straightforward to identify and quantify, as they are the direct effects of a covered peril.

Indirect losses, on the other hand, are secondary costs that arise from the direct loss. These can include additional expenses, like loss of income due to a business interruption following a fire, or costs associated with temporary housing after a property is damaged. Understanding this distinction is crucial for policyholders and insurers alike, as it influences how claims are assessed and how coverage is structured.

The other options like total and partial loss, physical and economic loss, and immediate and ongoing loss represent different concepts within the realm of insurance but do not encompass the primary classification of losses as defined in insurance principles.