QUESTION ONE $1\mathrm{.}1$ Define the following terms Direct losses Direct losses refer to the physical or stuchural impact caused by the disaster such as the destruction of infrastructure caused by the force of high winds, llooding or ground shaking. Indirect effects are the subsequent or secondary results of the initial destruction, such as business interruption losses "Principles of Risk Management and Insurance" by George E$.$ Reida and Michael McNkamara Indirect losses losses which do not naturally result from a breach and are not recoverable unless the defaulting party had special knowledge of the potential for such loss at the time of the contract. These losses are not immediately traceable to the event itself but are incurred as a result of