Simple English definitions for legal terms
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Direct loss is when something bad happens right away because of an event. For example, if a tree falls on your house during a storm and damages it, that's a direct loss. It's easy to see and understand what caused the loss. Direct loss is different from consequential loss, which is when something bad happens as a result of the direct loss. For example, if the tree falling on your house causes a power outage and you lose all the food in your fridge, that's a consequential loss.
Definition: A loss that results immediately and proximately from an event.
Examples:
These examples illustrate direct loss because they are the immediate and direct result of an event (car accident, storm). The cost of repairing the car or house is a direct consequence of the event that caused the damage.