If a fire causes a power outage that spoils meat in a freezer, how is the loss classified?

The classification of the loss as an indirect loss is appropriate because the spoilage of the meat in the freezer results from a series of events rather than a direct impact. In this scenario, the initial event is the fire, which causes a power outage. The power outage, in turn, leads to the secondary event of the meat spoiling due to lack of refrigeration.

Indirect losses are those that occur as a result of a direct loss, where the initial incident (the fire) does not directly destroy the insured property but causes subsequent damage or loss. In contrast, a direct loss would involve immediate damage to the property itself, such as physical damage to the freezer or the meat being ruined by flames or smoke. Other terms, such as negligible loss or catastrophic loss, do not accurately represent the nature of the loss caused by the power outage in this scenario.