Don’t Risk Consequential “Loss of Profits” Damages: Check Your Contracts and Insurance!

KVV Inc Attorneys

Published on: 04/03/2025

Consequential loss, an indirect result of an insured event, is often excluded from insurance coverage. A recent court case highlighted this issue when a transport company, despite having goods-in-transit insurance, was held liable for consequential loss (loss of profit) due to damaged goods. The insurer refused to pay, as the policy excluded consequential financial loss. The court determined the loss was foreseeable, leaving the transport company to pay the substantial damages claim out of pocket