____ cost is not paid by the insurance company and are recoverable.

____ cost is not paid by the insurance company and are recoverable.

• A. Indirect
• B. Direct
• C. Punitive
• D. Intangible

Answer: (A)

Indirect costs are the losses that follow an incident but aren’t directly paid by an insurance policy. Insurance typically covers direct expenses like medical bills and repair or replacement of damaged property. Indirect costs include things such as lost productivity, downtime, overtime to catch up, scheduling disruptions, and additional administrative or training expenses. These are not usually paid by the insurer, but they can be recoverable through a claim against the party at fault or via other recovery mechanisms, which is why they’re described as not paid by the insurance company and recoverable.

Indirect costs are the losses that follow an incident but aren’t directly paid by an insurance policy. Insurance typically covers direct expenses like medical bills and repair or replacement of damaged property. Indirect costs include things such as lost productivity, downtime, overtime to catch up, scheduling disruptions, and additional administrative or training expenses. These are not usually paid by the insurer, but they can be recoverable through a claim against the party at fault or via other recovery mechanisms, which is why they’re described as not paid by the insurance company and recoverable.