Which of the following is true about indirect losses?
A) A lawsuit is a good example of an indirect loss.
B) They can have a spill-over effect to other product lines.
C) They are only a result of significant property losses.
D) Indirect losses are irrelevant compared to direct losses.

Question

Quizplus · Accepted Answer

Indirect losses can have a spill-over effect to other product lines, meaning they can affect other areas of the business, not just the specific incident that caused the loss. A lawsuit (option A) can be considered an indirect loss, but it is not the only example. Option C is incorrect because indirect losses do not only result from significant property losses. Option D is incorrect because indirect losses are relevant and can have a significant impact on a business.

Which of the Following Is True About Indirect Losses