What describes an indirect loss?

An indirect loss refers to financial consequences that arise as a result of a primary event, such as a disaster or physical damage, rather than from the event itself affecting the tangible assets directly. In the case of option C, the temporary business closure following a disaster exemplifies an indirect loss because it reflects the financial impact that ensues from an event that disrupts operations.

For instance, while the primary incident (like a fire or flood) may cause physical damage, the resultant closure affects revenue generation, leading to loss of income. This showcases a situation where the direct damage may not be as financially impactful as the secondary effects it creates, like the inability to operate a business during recovery.

In contrast, the other options relate to direct losses or scenarios that don't encapsulate the broader implications of an indirect loss. Theft or direct damage to property typically results in immediate financial loss associated with those specific events, without the broader-reaching impact characterized by indirect losses.