Is Consequential Loss Recoverable?

Also called special damages, since they result from a breach of contract and yet would not necessarily be incurred by every injured party experiencing that breach. Consequential damages are generally not recoverable in contract disputes, but are recoverable in tort. See General damages (contrast).

What are consequential damages and when are they recoverable?

Under the UCC, consequential damages are damages resulting from the seller's breach including (a) any loss resulting from requirements and needs of the buyer of which the seller had reason to know at the time of contracting and which could not reasonably be prevented by cover or otherwise; and (b) injury to persons or ...

Is consequential loss covered by insurance?

Consequential loss coverage reimburses the insured for business costs due to damaged facilities or equipment. For example, business interruption insurance can cover situations that result when the loss of revenue occurs due to events such as an extended power outage, a flood, or a mudslide.