Insurance WAEC

A manufacturing company whose production was abruptly stopped by fire incidence would have its claim for loss of earning settled under the class of?

A. fire insurance
B. all-risk insurance
C. product liability insurance
D. consequential loss insurance

Correct Answer: Option D

D. consequential loss insurance

Explanation

What is ‘Consequential Loss’. A consequential loss is an indirect loss resulting from an insured’s inability to use business property or equipment. A business owner may purchase insurance to protect them against the secondary loss of property and equipment due to a natural disaster or accident.

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