Ensuing-Loss Clause

Definition

A provision that creates an exception to coverage exclusions in an all-risk property-insurance policy. If an excluded peril is part of a chain of events that causes another peril that the policy covers, an ensuing-loss clause covers the ensuing loss if significantly attenuated from the excluded peril. The type of damage the ensuing loss caused must be distinct and separable from the damage caused by the excluded peril. A classic example is an earthquake causing a fire. If the policy excludes earthquakes but covers fires, an ensuing-loss clause covers the fire loss.