Which of the following best defines indirect loss?

Indirect loss refers specifically to the economic consequences that arise as a result of a direct loss. When a direct loss occurs, such as damage to property from a fire, the indirect losses are the additional costs that stem from that event. This can include lost income due to business interruption, additional expenses incurred while repairs are made, or costs associated with finding temporary accommodations or facilities.

In contrast, the other options do not accurately encapsulate the concept of indirect loss. For example, while natural disasters can lead to both direct and indirect losses, they do not exclusively define indirect loss. Similarly, subsequent repairs that exceed initial damage refer more to the extent of a loss rather than its indirect nature. Lastly, full coverage of property damages pertains to insurance provisions and does not address the concept of loss, direct or indirect. Understanding indirect losses is crucial for insurance and financial planning, as it highlights the broader financial implications that can result from a single, primary loss event.