The striking dock workers on the West Coast refused to unload the ships carrying merchandise for retail stores. These stores suffered loss of revenue during the Christmas season, their highest earnings period of the year. This revenue reduction is a(n) _____ loss that _____ be covered by insurance.
A) direct; can
B) indirect; can
C) direct; cannot
D) indirect; cannot

Question

Quizplus · Accepted Answer

The loss is indirect because it is not a direct result of physical damage to the stores' property but rather a consequence of the dock workers' strike. Most insurance policies do not cover such indirect losses, especially when they are the result of strikes or labor disputes.

The Striking Dock Workers on the West Coast Refused to Unload