What is a characteristic of an indirect loss?

An indirect loss is characterized by the fact that it results from a chain of events stemming from a primary loss or damage. Instead of being a direct consequence of an incident—like the destruction of a building—an indirect loss involves secondary effects that arise from the initial damage. For instance, if a business has to temporarily shut down due to damage from a fire, the loss of income during that period is an indirect loss. This type of loss is not immediately evident and may require documentation to assess its financial impact.

In contrast, the characteristics associated with other choices do not align with the notion of indirect loss. Receipts relate primarily to direct losses, which are often verified through tangible evidence of property damage. Damage to physical property explicitly refers to direct losses, and the idea that a loss occurs without any evidence does not accurately represent how indirect losses are assessed, as they often rely on financial records and projections to quantify the impact.