Which term describes physical harm to tangible property?

The term that best describes physical harm to tangible property is "direct loss." This concept refers to the immediate damage or destruction of property that can be directly linked to a specific event, such as fire, theft, or natural disaster. Direct losses involve physical damage to assets, which can be quantified in monetary terms for purposes of insurance claims and recovery.

When discussing other types of losses, such as indirect loss, this typically refers to the financial impact that occurs as a consequence of a direct loss, such as a business income loss while repairs are being completed. Operational loss may pertain to inefficiencies or financial losses arising from operational difficulties, which are not necessarily tied to physical property damage. Legal loss would involve liabilities or expenses that arise from legal actions, which also do not focus directly on physical harm to property. Understanding the distinctions helps clarify how insurance coverage applies to various types of losses.