Which of the following best describes "indirect loss"?

Indirect loss refers specifically to the financial impact that arises as a consequence of a direct loss. In the context of the question, loss of revenue due to a business interruption exemplifies an indirect loss because it does not stem from the physical loss of property itself but rather from the inability to conduct normal operations due to that loss.

For instance, if a business suffers damage to its premises from a natural disaster, the repairs may take time, and during that period, the business cannot operate as usual, leading to a decline in revenue. This scenario highlights how indirect losses are often related to the broader financial repercussions that follow a direct loss event.

In contrast, losses from theft (theft of property) and physical damage to an asset (actual structural damage) are characterized as direct losses because they involve tangible impacts resulting from an event. Similarly, costs incurred to repair damaged property are directly associated with the physical restoration of that property, thus fitting into the category of direct loss rather than indirect loss.