Economic loss refers to when somebody incurs financial losses. An example would be a car accident. This would incur losses caused by the physical damage to the car and the cost of repairs. Economic loss can include physical damage as well as loss of profits, loss of trade or loss of investment. There are two types of economic loss:
■ Consequential: refers to economic losses directly linked to any physical loss, for example lost wages for time off work after breaking a leg in a car accident, or the physical cost of repairing a car following an accident.
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