I was looking at an old policy and noticed that there was a difference in the Latent defect clause. My new policy states:
What we cover:
Hidden Defect: We shall pay for indirect physical loss or property damage caused by any hidden defect in the machinery, the hull, or any other area of your yacht. In the event a mast failure is deemed to be caused by a hidden defect in the mast, the mast shall be considered one indivisible unit. We shall not, however, pay for the cost of replacing or repairing the defective part.
The old policy states:
Latent defect: However, any resulting direct physical loss or damage to your yacht resulting from the latent defect will be covered.
What is the difference between direct and indirect damage?