What type of loss is defined as physical harm to tangible property?

A direct loss refers to physical harm or damage to tangible property. This can include the destruction of buildings, damage to vehicles, or harm to equipment resulting from events such as fire, theft, or natural disasters. The key aspect of direct loss is that it involves a clear and immediate impact on the property itself, which is distinct from other types of losses.

Indirect loss, by contrast, relates to financial consequences that arise as a result of direct loss, such as lost income or additional expenses incurred while the property is being repaired. Economic loss generally encompasses a broader category of losses that can include both direct and indirect losses, often relating to financial impacts across various scenarios. An occurrence typically refers to the event that leads to a loss, rather than the loss type itself. Thus, identifying direct loss is crucial for understanding insurance claims relating specifically to physical damage.