What Exactly is Defined as Incidental Damage?

Incidental damage is defined as money that equals the cost of damages or compensation that must be paid to someone else for an injury or losses. Although this definition may seem a little difficult to understand, it basically states that incidental damage can be awarded through legal means to compensate an injured party for losses including pain and suffering. Most people overlook this type of coverage when choosing a auto, home or business insurance plan.

An example of this type of compensation would be money awarded by an insurance company after an automobile accident in which a person incurred lost wages, lost time, and pain incurred from an injury. For example, if an individual was involved in a car accident on the day of his or her wedding and was unable to go through with the original plans, incidental damage could be awarded.

Another definition of incidental damage could involve a breach of contract within a business dealing. If you own your own business and a client was not happy with a particular product, he or she could be awarded a monetary amount to compensate for the loss. These types of expenses could include the cost of telephone calls, return shipping of a product, etc. Your business insurance policy would take care of this amount.

A third example of incidental loss is compensation for spoiled food due to a power outage from a storm or other calamity. Your homeowners insurance plan would take care of the loss of food up to a specific dollar amount depending on your coverage and deductible.

It is important to consider all types of coverage when choosing an insurance policy. You should always compare quotes for different types of policies and find a plan that will fit within your budget. When comparing plans, look at the amount of coverage for this type of loss. You never know when you might be involved in an accident or loss and need the help of your insurance provider. Compare quotes and rates today to find the perfect insurance plan for your situation.

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