A direct loss is some type of property loss in which a consistent sequence of events led to the cause of the partial or complete destruction related to that property. It is a financial loss that results from the physical damage, destruction or theft of property. This is in contrast to indirect loss in which the chain of events helps set the stage for the loss, but did not contribute to it directly. It is therefore a financial loss that results indirectly from the occurrence of a direct physical damage or theft loss.

1. Identify all the direct losses the bank experienced.

Texas bank had purchased furnitures, equipments and stationeries (papers, etc) for used by its administrative and other staff’s members to carry out the daily activities of the bank. The building which was leased by the bank was hit by a tornado causing extensive damage to its infrastructure and contents.
The direct losses would include: * The physical damage to the furnitures * The physical damage to the equipments * The cost to replace the destroyed furniture, carpeting and electronic equipments. * The cost to repaint the building.

2. Identify all the indirect losses the bank experienced.
The indirect losses would include: * The loss of the use of the building * Extra expenses. These includes rental for alternate locations because the bank will need to continue to operate regardless of the cost so as not to lose its customers, expenses for shuttle services to transport employees between locations and allowances for employees commuting expenses. * Loss of lease already paid. * The cost to relocate since the owner has terminated the previous lease. * The cost of staff time to resolve the issues associated with the