What term describes losses not inflicted by the peril itself but as a result of a direct loss?

The term that describes losses not inflicted by the peril itself but as a result of a direct loss is known as Indirect Loss. This type of loss typically occurs as a secondary consequence of a direct loss event, such as when a flood damages a property and leads to the loss of rental income while repairs are made. Indirect losses can encompass a variety of financial impacts, such as business interruption costs or additional living expenses incurred while a home is uninhabitable due to damage.

In contrast, Direct Loss refers to the immediate financial loss suffered from damage to property directly caused by a peril, without considering the secondary effects. Contributory Loss does not accurately describe the secondary impacts stemming from a primary loss scenario. Lastly, Collateral Damage more commonly pertains to unintended damage caused alongside a primary event, often used in military contexts or broader disaster scenarios, rather than specific insurance terminology for indirect financial impacts.